There are lots of risk of entering a foreign market. And we can assess the risk by :
Checking the basics needs in the foreign market :
Whenever any business jump into the international market, first know what is the basic needs of customers as well as our product demand in the market. Also should measure the competition level in the market .
e.g ALL BALACKS KIWI LTD plans its business in India, than they will check the basic needs of fruits market as well as exotic .They will analysis the product demand in the market with the competition level.
2) Economic & financial Factors: Interest rates, exchange rates, inflation rates, credit are the economical and financial factors. Due to the inflation going on in fruits…show more content… Price & quality comparison with competitor and how it survey how they give the service to the customers. 5) Incentive by Government:- To build the business in the new country, government of their countries give the rebate on taxes to encourage the importer and motivate the relation of two countries through import business.
Marketing opportunities arise when customer group with different wants and needs are recognized. Market can be segmented by age, gender, location, geography and demography. For market segment must be large enough to provide and profitable customer base. To explain all the segment I am giving the examples for them.
Geographical factors - In Mumbai, India , Large size car may not be popular because of the parking problem as well as heavy traffic in the city due to huge population..And also the other reason that Mumbai is the metro city so people are time conscious and believe in public transport and metro train rather than personal vehicle.
Demographic factors - Married women will purchases the baby born products where men will plans their retirement and invest money to get the retirement insurance.
Technological - Technology has been changed day by day which directly effect to that related market and benefited to customers.
e.g. In India, there are lots of competition in the telecommunication. People buys the mobiles from the company but the technology will be change and because of that the new application