Marketing Analysis
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Conclusion 1: Market Suitability/Potential
UsBest computers Ltd deals with computing components and therefore the best country to export its products is nation A. This is because there are few nations that manufacture computing components there and it is only for used domestically. The amount of computing components produced in nation A are very few that there is little or no surplus left for export. For this reason, UsBest will face minimal competition. Secondly, the nation has a GDP per capita of $ US 43, 000 compared to that of nation B of US$ 8, 000. This is an indication that there is economic growth in nation A compared to B. the increased GDP per capita also shows customers in nation A has higher bargaining power compared to nation B.
Conclusion 2: Determining Entry Modes
Entry to nation A is easy for UsBest computers Ltd compared to nation B because computing equipment is among the components that the nation imports . What is more, the inflation rate of the nation is low, meaning that its economic growth and development is high. The buying power of the people in nation A is also high considering its high GDP per capita. In addition, the political structure in nation A is better compared to nation B because it reduces leadership imbalances. With a unicameral parliament, decision-making is easy and therefore chances of political instability are reduced. Nation A has a UN Human Development Index of 90 compared to 72 that of nation B . This indicates that the living standards of people in nation A is high compared to nation B and hence increased bargaining power.
Conclusion 3: Other General Characteristics of the Business Environment/Attractiveness
Adult literacy rate is another factor that makes nation A favorable for investment by UsBest computers Ltd. The increased adult literacy rate is an indication that most of people in this nation are using or are able to use technological devices such as computers and smartphones. All the literate people in this nation are likely to buy computers and therefore the potential of UsBest computers Ltd in nation A is very high. Another attracting factor in nation A is the increased Fixed Broadband Connections . The data shows that out of every 100 people, 24 have Broadband Connection. This data indicates increased usage of computing devices in nation A compared to nation B and therefore increased potential customers for the computing devices.
Conclusion 4: Risks Associated with the Country Markets
Doing business is less risky compared to r unning business in nation B and this is why UsBest computers Ltd should chose nation A instead of nation B to export its products. To begin with, the inflation rate of the nation is high le ading to high bargaining power. This also shows the stability of nation A currency is high compared to the currency of nation B. For this reason, UsBest computers Ltd will not suffer from fluctuation in the prices of its products. Exporting products in nation B is also a great risk for nation B because the nation has very low GDP per capita. This indicates the people potential customers in this nation have low bargaining power and there is a possibility of them not buyi ng more of the firm's products .