As managers of a company that produces and sells high quality garments, our mission is to find a new market abroad. In this context, we chose Finland, which would give the company many opportunities to grow. To justify this choice, we will analyze the different criteria that have reinforced the choice; subsequently, we will analyze the input modes that are available in our target country. Finally, we will propose different precautionary measures that would be good to limit the optimal risk that may arise while entering the Finnish market.
With respect to the general economic criteria, we noticed that the Finnish GDP is growing each year: 165 billion USD in 2005, 188.9 billion USD in 2006 and 196.1 billion USD in 2007. This reflects a steady increase in domestic activity, symbolizing the dynamism of the country's industry. The inflation rate has been declining since 2006: it was 0.8% in 2007 whereas it was 1.3% in 2006. This would be good for our presence in the sense that prices do not seem to vary too much, which allows consumers to maintain their purchasing power, and therefore retain a strong demand.
The level of unemployment appears to be decreasing from year to year. Indeed, it was 9% in 2006 and dropped to 8.9% in 2007 (we could not get more numbers on it). This confirms what we said previously, namely that the purchasing power of consumers remains stable, thus retaining the level of existing demand.
GDP per capita increased substantially. In 2005, it was $31,657.5, $36,192.4 in 2006 and by 200, it had increased to $37,504.
The growth rate of GDP increased between 2005 and 2006 and then declined in 2007.It rose from 1.8% in 2005 to 2.9% in 2007, confirming the prospects for this country in terms of production. Imports of goods increased significantly; they increased by 42.5 billion USD in 2005 to 58.7 billion USD in 2007.
Tags: Finnish Economy, Trade and Industry in Finland, Market Attractiveness of Finland
[...] The branch is responsible for the transmission of orders, deliveries and monitoring of local regulations. Thus the parent company has less work to carry on business management in the new host country. This type of implementation can provide a good knowledge and good control of the market and exploration facilitates for expanding the marketing area. Another important advantage is that the settlement monitoring customers directly by the branch. Management is facilitated and the control of non-recovery is easier and faster to implement. [...]
[...] -GDP per capita is increasing substantially. In 2005 it was $ in 2006 it was and in 2007, it rose to 37,504. -The growth rate of GDP rose between 2005 and 2006 and then declined in 2007.It increased by in 2005 to in 2007, confirming the prospects of this country in terms of production. Regarding the criteria of balance of payments: -Imports of goods increased significantly: they increased from 42.5 billion USD in 2005 to 58.7 billion USD in 2007. [...]
[...] It is therefore not that the market for high quality clothing is becoming saturated in the host country. This market research is especially important because we must be sure that the profitability of the subsidiary will cushion the costs of its implementation and generate profits. An extremely important question which we must ask is whether the parent has the ability to manage its subsidiary. This requires that the exporting company has good experience and a good command of the wider management of accounting, finance, human resources. [...]
[...] The employee may be based in the host country or in France (Countries of our company). To improve the accuracy of market information in the foreign country, it is preferable that the employee is located in the host country although it is more difficult to control his work if he is. The advantage of having a representative abroad is a good control of marketing and good market information in real time. However, it is more complicated for the exporting company to manage orders and risks. [...]
[...] Of course, it must pursue the same activity as the offering business. The disadvantages are that the cost of buying is high, and the need to conduct an audit to assess the subsidiary and the attraction for redemption. A significant risk which should not be overlooked is the cultural difference between the two entities. This can greatly complicate relations and the indirect management between the two brands. - To have a joint creation: This formula is expensive and time consuming to implement. [...]
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