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International Market Entry and Development - Essay Example
Author : averypfannersti
Pages 4 (1004 words)
Companies in today’s competitive environment can not operate and expect to achieve sales growth unless they expand beyond their domestic marketplace. Technology along with the internet has compressed the global market due to the fact that e-commerce has become a widespread trend among global players…
is the 4th highest exporter and the top importer worldwide. Due to the amazing growth of many emerging economies companies must target these foreign nations to achieve further growth in the long term. The purpose of this paper is to analyze foreign marketplaces and the strategies that must be used to penetrate these markets. Market research about a country is necessary in order to determine if the target market is adequate for penetration. One of the first things a company must evaluate about a country is its economic condition. There are multiple socio-economic variables that the management staff of a company must consider. Two of the economic variables that must be evaluated are average income of the population and the gross domestic product of the country. The United States has a gross domestic product per capita of $46,300, while its average salary is above $41,000 per year (CultureGrams, 2011). When a country is searching for expansion opportunities it must consider both develop economies and emerging economies. The top five emerging economies in the world are the members of the BRICS. The acronym BRICS stands for Brazil, Russia, India, China, and South Africa. The two most intriguing economies from this group are the economies of India and China. India and China have more than 1/3 of the world’s population. Another important demographic variable to consider is population. ...