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1
IM TEAM ASSIGNMENT
GROUP 5
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ETHNIC HOME FURNISHINGS
INDEX
CHAPTER PAGE NUMBER
DESCRIPTION OF PARAMETERS FOR MARKET SELECTION 7
BASIS OF SELECTION8
WEIGHTAGE AMAONG PARAMETERS 13
GENERAL DESCRIPTION OF MARKET SELECTION (PEST) 15
DESCRIPTION OF GRIDS 21
FINE SCEENING 52
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THE PRODUCT: ETHNIC HOME FURNISHINGS
Out Products & Services
The exclusive range of our cotton home furnishing products like
Table linens, Kitchen Linens, Bath Linens, Bed Linens & other
made ups, promises everything-fine texture, beauty, form and
style. Our home decor accessories showcase has an extra
ordinary collection that includes:
Home Furnishing Products
Table Linens
Kitchen Linens
Bed Linens
Bath Linens
Made - Ups & other home furnishingsproducts
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Hot Products
Cushion Cover
CrochetTableCover
Bed Sheets Chair Covers
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Bed SpreadsBed Sheet
Bed Sheets
Competitive advantage:
High quality home furnishings productproduction of
Customized home furnishing products at
economical rates
On-time deliverance of home furnishing
products
Capacity to execute home furnishing productsbulk orders expeditiously
Excellent home furnishing products post sale
services
High home furnishing products production
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capacity
Vast home furnishings product network all over
the globe
Our products are synonymous with style, elegance and class,
home furnishings, home furnishing textiles products made of
100% cotton, polyester handloom, power loom and shuttle-
less loom have made waves in the home furnishings textile
items industry with their impeccable quality andworkmanship.
Ours is a premier company known as leading manufacturers
and exporters of high class home furnishing products such as
kitchen linens, table linens, and bed linen & bath linens
products. We manufacture our home furnishings textile
products in accordance with customer specification and
provide comprehensive pre-and-after-sales services to our
clients. We are backed by an experienced and talented
workforce of dexterous designers and artisans. Our prime
objective is to achieve total customer satisfaction by
supplying best home furnishings, cotton textiles products
that includes kitchen window curtains, cushion covers &
table covers.
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CHAPTER 1
DESCRIPTION OF PARAMETERS FOR MARKET SELECTION
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CHAPTER 2
BASIS OF SELECTION
Factors considered for PEST Analysis
PEST i.e. Political Economical Social Technological Analysis is carried while
entering any new market because it helps us to get a clear idea about the business
environment in that place and if it is feasible to proceed with International
Business or not.
In our plan to enter into a foreign market for the products of Ethnic home
furnishings, we carried out PEST Analysis of different target countries in order to
choose the best option.
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POLITICAL ASPECTS:
The political environment of any country has major impact on the business
there and thus it is very crucial to analyze it.
For our product, the political environment holds 20% importance. Based on this
we decided various parameters.
y Government Policies: To check if the government is supportive offoreign trade and business and how co-operative are the policies in that
country.
WEIGHTAGE: 5%
y Government Stability: If the government is stable then only can otherthings function efficiently.
WEIGHTAGE: 5%
y Type of government: Monarchial, Democratic, Republic etc aredifferent types of governments and are very influential on the market.
WEIGHTAGE: 5%
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Also the tax policies should be moderate.
Economic policies:
Economy of any country has great importance and major role to play when
international business is considered.
We found it to have 35% importance especially with respect to our product.
y Gross Domestic Product: This depicts a good standard of living andeconomy is growing at high rate.
WEIGHTAGE: 10%
y Unemployment level: if the level is high then we have scope ofcheaper labour.
WEIGHTAGE: 8%y Infrastructure: this is most important factor as no industry can
flourish without a well established infrastructure.
WEIGHTAGE: 10%
y Labour: cheap and efficient is need of the hour and is really veryimportant.
WEIGHTAGE: 7%
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Social conditions:
The social environment, culture, ethics etc have important influence on the
customers and thus influences their choice as well.
It holds 35% importance in our analysis.
y Demography: the demographic features and characteristics influencepeople and in turn affecting the business.
WEIGHTAGE: 10%
y Income distribution: it affects the buying capacity of the customer.WEIGHTAGE: 10%
y Fashion trends: this is most dynamic and ever changing aspect andtaste of customers helps them in choosing type of product.
WEIGHTAGE: 7.5%
y Saving rate: the tendency of people to save money and invest in aproduct after deep thought would affect overall sales.
WEIGHTAGE: 7.5%
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Technological environment:For ethnic home furnishings the technology is not of that much importance but
has little influence on the overall entry in the market. As online shopping can
always enhance our sale and productivity.
The importance according to us is 10%.
There are only two major aspects as far as our product is considered:
y Use of internet.Online shopping.
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Tabular presentation of PEST distribution
ATTRIBUTES POINTS ALLOTED
POLITICAL 20(TOTAL)
Government stability 5
Type of government 5
Tax policies 5
Copyrights 5
ATTRIBUTES POINTS ALLOTED
ECONOMY 35(TOTAL)
GDP 10
Unemployment
Levels
8
infrastructure 10
lab our 7
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ATTRIBUTES POINTS ALLOTED
SOCIAL 35(TOYAL)
Demographics 10
Income
Distribution
10
Fashion trends 7.5
Saving rate 7.5
ATTRIBUTES POINTS ALLOTED
TECHNOLOGICAL 10(TOTAL)
Use of internet 5
0nline shopping 5
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CHAPTER 4
GENERAL DESCRIPTION OF MARKET SELECTION (PEST)
MAURITIUS: PEST ANALYSIS
1. Political Statusy Political success because of good governance and republic type government.y Followed British Westminster model.y Majority more than 50% are Hindus.y Copy rights and IPR are protected there: Copyright Act 1997 of Mauritius
Anyone applying for a patent or registering a trademark or design, whether
at the national or international level, is required to determine whether their
creation is new or is owned or claimed by someone else. Four WIPO treaties (listed
below) created classification systems which organize information concerning
inventions, trademarks, and industrial designs into indexed, manageable structures
for easy retrieval
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WIPO(World Intellectual Property Organisation) administers four treaties
establishing international classifications, the texts of which are also available:
1. the Strasbourg Agreement concerning the International Patent Classification(IPC);
2. the Nice Agreement concerning the International Classification of Goodsand Services for the Purposes of the Registration of Marks;
3. the Locarno Agreement establishing the International Classification forIndustrial Designs;
4. the Vienna Agreement establishing the International Classification of theFigurative Elements of Marks.
y Tax policy favourable for the business.:The Deputy Prime Minister Asimple and low tax jurisdiction is critical to our endeavour to open our
economy and country to the rest of the world. We are liberalizing trade at the
same time as we are empowering our enterprises to be globally competitive.
But most importantly, we are opening our country to attract foreign talent,
ideas, capital and technology.
y Stability of government is there.y Allowing of foreign companies to export because of scarce natural
resources.
2. Economic StatusGDP at present is 5.7% (2009) previously it was 7.6%.
Low employment rate 7.6% approximately.
Labour force strength of 584000 approximately (2009).
Good economic infrastructure and less population.
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37% labour is engage in the industry.
The Mauritian economy is based on four sectors: Textile, Tourism,
Sugar and Services.
Labour point of view favourable for the business.
3. Social Statusy Majority population lies in the city (Port Louis).y No official languageMost people in Mauritius are bilingual and
are equally fluent in English and French they deal with the English
language.
y Good earnings.y Population literacy rate
82.9%
y Culture : Mauritius is a blend of diverse cultures and religions. Thepopulation consists of Hindus, Creole, Chinese, Muslims and
Europeans.
4. Technological Status
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EFFORTS are in full swing to develop Mauritius into a cyber-island and
to make information and communication technology the fifth pillar of the
economy after sugar, textiles, tourism and financial services.
The island-nation's vision is to become a regional IT or 'dotcom
hub
Using of internet by the people there. Technology oriented. Many duty free shops and modern shopping centres (Caudan,
Curepipe, Floral Square, Happy World House, Orchard
Centre)
Emphasis on competitive framework. On line shopping.
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PEST ANALYSIS CANADA
ECONOMIC
Top ten trading nations
Mixed market
Low employment rate (7.77%)
Large govt. surplus
Among top 10 countries in GDP aspect
Debt to GDP ratio reduced by 50% in 2009
Avoided recession
World Bank ease of doing business-8/181
Labor is paid on hourly basis
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High investment in infrastructure
As per latest information on Canada economic conditions $12 million has been
allotted in budget that was presented in January 2009 by finance minister Jim
Flaherty for infrastructural expenditure. An economic stimulus worth $4 billion
package has also been announced. This package would be built on contributions
from all provinces in Canada and would be used for purpose of repairing and
maintaining facilities that are already there.
This budget has also set aside a billion dollars for projects that are environment
friendly and $500 million each to be spent in projects to be executed in small
towns and facilities for recreation of Canadian communities as well as establishing
trade with foreign countries to create bonds of business globally.
This budget would help us by providing us favorable economic conditions.
SOCIAL
Population growth due to migration
Highest per capita immigration rate in world
Good economy policy and family reunification
Demographic- maximum population lies between 45-55
Maximum population resides in cities.
Income distribution is medium.
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Government invests in fashion trends
Personal saving rate is very less.
Most respected post secondary education
Human development index 3/180
One of the most remarkable features of recent Canadian history has been the large
and increasing immigration from different countries. For many years past a stream
of home-seekers has been flowing northward from the farming States of Kansas
and the Dakotas, and the total figures relating to immigration have been very high.
The blend of culture in Canada will give us advantage as people from different
corners of the world would be our target and our scope would be enormous.
Canadian culture is a term that encompasses the artistic, musical, literary,
culinary, political and social elements that are representative of Canada, not only to
its own population, but people all over the world. Canada's culture has historically
been influenced by European culture and traditions, especially British and French.
Over time, elements of the cultures of Canada's Aboriginal peoples and immigrant
populations have become incorporated into mainstream Canadian culture. It has
also been strongly influenced by that of its linguistic, economic, and cultural
neighbor, the United States.
POLITICAL
Parliamentary govt. with democratic tradition
Common law except in Quetec
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Copy rights act are strong (C60 and C61)
Equalization payments by federal govt.
Moderate tax policies
The politics of Canada function within a framework of constitutional monarchy
and a federal system of parliamentary government with strong democratic \
traditions. Many of the country's legislative practices derive from the unwritten
conventions of and precedents set by the United Kingdom's Westminster
Parliament.
Canada is considered by most sources to be a very stable democracy. In 2006 The
Economistranked Canada the third most democratic nation in its Democracy
Index, ahead of all other nations in the Americas and ahead of every nation more
populous than itself.
A stable government would be very essential for us if we wish to establish a
successful business there and in Canada the scenario will work for our benefit.
TECHNOLOGY
Voluminous use of internet
Online shopping preferred
Improved accessibility
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Canadian People are very tech savvy and prefer online shopping. So the options for
sales are increased. Home Furnishings generally have a very large market online .
So the voluminous use of internet is an added benefit in case of Canada.
Country-Malaysia
Political Factors.
y Controls on immigration.y A fairly new country formed in 1957 (Malaysia) and 1963 (Malay, Sabah,
Sarawak, and Singapore).
y Parliament and hereditary rulers.
Economic Factors.
y Recovering from a very severe recession.y High government spending.y Very low inflation and unemployment.y Favorable prediction for growth in the economy.y
Lack of corporate reform (high corporate debt and competition)
Socio-cultural Factors.
y Mixture of Chinese, Indian, and Malaysian.
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Asian believes in decorating there houses with mixing the tastes of various
cultures to give it a personal touch and there is a huge market potential for a
wide variety of ethnic home furnishing product. This indicates that our
product ethnic home furnishing will be easily absorbed by the market of
Malyasia.
y Variety of religions.y Low rates of literacy among women.
Even though the literacy rate among the women is low this can be used as a
tool for social welfare as these women can be provided vocational training towork in our factories. It would be a mutual benefit for the host and the home
country.
Technological.
y Good national and international lines.
There is a well established network of national and international lines. The
country is well equipped with the latest technological facilities with effective
communication
y A variety of TV and radio stations.
TV and radio stations can be used to promote and publicize our product for
marketing purpose.
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y ISPs and airports available.
Availability of airports and good road system will lead to wider distribution
of the product. We would also be able to incorporate Just in time and also
we will be able to reach the remote areas.
Singapore: - PEST analysis
1. Politicaly Government stability: - stable government.
This will ensure our products are easily accepted
y Type of government: - British system of parliamentary government.y Copy right: - very stringent rules.
This will protect our products from compititors.
2. Economicy GDP: - $179 billion.
This helps us in estimating the future market potential.
y Unemployment levels: - very low.With low employement,it will be favourable for our products,as more
people employed they can do more of shopping.
y Infrastructure: - high contribution by the government.As government support is there so better commercial infrastructure.
3.Social
y Demographic: - lots of ethnic groups are there in including Indians(14%).
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This will our ensure more sale of our products as presence of Indians
is large.
y Income distribution: - medium.y Fashion trends: - a vibrant city lifestyle.This is a good indication as people believe in fashionable products so its
favourable for us.
y Saving rate: - moderate.People believe in spending more so more chances for our products to
be accepted easily.
3.
TechnologicalUse of internet: - 42% internet penetration.
Online shopping: - high.
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EXPLANATION FOER EVALUATION OF GRIDS
TIME ANALYSIS OF
PRODUCT IN A COUNTRY
1- very
poor
2- poor 3- medium 4- good 5- very
good
% weight
factor
result-
(grading x
weight)
COUNTRY
GDP (economic) 10%
Labor(economic) 10%
Infrastructure(economic) 10%
Unemployment
level(economic)
5%
Demographic(social) 15%
Income distribution(social) 15%
Online 10%
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shopping(technological)
Market size(economic) 10%
Tariff Rates(political) 15%
Total 100%
Explanation for the weight age of percentage given to different
attributes.
1. GDP:
This is important for our evaluation criteria, as higher GDP depicts good
living standard of people. It even gives idea about per capita income. So it is
important in our consideration as higher GDP will be favoured for selection
of country.
2. Labour:
This factor is important as each country has its own labour laws and
different rules. Country with moderate labour laws and ease of availability
will be favoured. So the weight age allotted to this is
3. Infrastructure
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Can be defined as the basic physical and organizational structures needed
for the operation of a society or enterprise, or the services and facilities
necessary for an economy to function. The term typically refers to the
technical structures that support a society, such as roads, water supply,
sewers, power grids, telecommunications, and so forth.
4. Unemployment levels:
When unemployment level in a country is low, it means most of the people
lie in working population and will have high purchasing power.
5. Demogrphics
Demographics are the statistical characteristics of human populations, such as age
and income that are used by businesses to identify markets for their goods and
services.
Basic demographic analysis is used for two reasons: to identify population
characteristics in order to determine just who your potential customer is and to
serve as a means of locating geographic areas where the largest number of
potential customers live
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6. Income distribution
The distribution of wages earned across a company, industry, or country. Income
distribution reveals what percentage of individuals are at various wage levels,
information that can reveal more about overall wage patterns than average income
can.
7. Online shopping
Is the process consumers go through to purchase products or services over the
Internet? An online shop, e shop, e-store, internet shop, web shop, web store,
online store, or virtual store evokes the physical analogy of buying products or
service at a bricks-and-mortar retailer or in a shopping mall.
8. Market size:
This refers to the amount of market referred to the sector in which we will be doing
business. Larger the market size, more the country will be favored.
9. Tariff:
This refers to amount of tariff we will have to pay to the government in which we
will be doing our business. More the stringent tariff plans, less the country will be
favored.
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Relative Competitive Strength
Parameter
1-
very
poor
2-
poor
3-
medium
4-
good
5-
very
good
%
weight
factor
Result(
grading
x
weight)
Product fit to market demand
Prices and condition
Market presence image
Marketing support
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Obtainable market share
Financial result. cash flow
Total
1. Product fit to market: A condition in which a product fulfills aconsumer's needs. For example, an investor may select a new municipal
bond because that bond's maturity makes it a good fit in the investor's
portfolio. Along other lines, a relatively small two-bedroom home is a
good fit for a retired couple.
2. Price: Market value, or agreed exchange value, that will purchase adefinite quantity, weight, or other measure of a good or service.
3. Market presence: Prospects who are willing and capable (have sufficientresources) buyers, and have access to a particular market or service.
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4. Conditions: Characteristic of a market into which a firm is entering orinto which a new product will be introduced, such as number of the
competitors, level or intensity of competitiveness, and the market's
growth rate.
5. Marketing support: tools and elements that are used to build a brandname in the market.
6. Image: A product identity, or brand image are typically the attributes oneassociates with a brand, how the brand owner wants the consumer to
perceive the brand - and by extension the branded company,
organization, product or service.
7. Obtainable market share: An investment style that looks for stocks withstrong earnings and/or revenue growth or growth potential.
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Parameter 1-
Very
poor
2- Poor 3-
Medium
4-
Good
5-
Very
good
%
Weight
factor
Result-
(grading x
weight)
GDP (economic) 3 10% 0.3
Labor(economic) 4 10% 0.4
Infrastructure(economic) 5 10% .5
Unemployment
level(economic)
3 5% 0.15
Demographic(social) 4 15% 0.6
Income distribution(social) 3 15% 0.45
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MAURITIUS:
TABLE EXPRESSION
1.
The country GDP at present is 5.7% in the year 2009 but it goes to in thedecline phase. In the year 2008 it declines and comes down to the 7.6%.
Because of this reason after deducting it comes down in the negative
figure thats why it comes under the medium category.
2. The approximate strength of labour force is 584000 and below povertyline 8% are there (2009) estimates therefore labour will be cheaply
available because 37% of labour are engage in the industry. So from
labour point of view it is favourable for the export.
3. Infrastructure of the Mauritius is excellent the one advantage what wehave because of the small size of the island and scarce natural resources.
Mauritius import huge amount of goods from countries like France,
Online
shopping(technological)
3 10% 0.3
Market size(economic) 4 10% 0.4
Tariff Rates(political) 3 15% .45
Total 100% 3.55
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South Africa and India. The country is a developing economy just like
India so trade from Mauritius is a good option.
4. Rural industrialization has brought more of the Indian population, wholive in the higher numbers in the countryside into the factories. The boom
in industry has opened skilled labour positions to all ethnicities in
Mauritius leading to very low employment rates that is 7.6%
approximately that is ain favourable for our business because of large
Indian population and a labour force of 584000 approximately (2009)
estimates.
5. The majority of population live in the capital and longest city, Port Louis.The population density is one of the highest in the world. Earlier the
Indian population has become more than tripled. Hindus 105735 approx,
Muslims 328672 approx, Christians 343395 approx and 25000 listed
other. There is no official language. Government and administrative work
is written in English, favourable for the business. Hindi is considered
more prestigious among the Indian population.
6. The Mauritian income distribution is sound. People there get salary andwages according to the nature of job. There is no unequal distribution
because of this business is favourable. Women are the traditional home
keeper of the society the advantage is it is good for our business.
7. Another thing is online shopping in which they can demand throughonline. Mauritius is taking its cue from the Honking and Singapore
approaches with their emphases on a competitive framework and
framework and focus on technology support service. Again there is
favourable for the business.
8. Tax policy in the Mauritius is very favourable because of the developingeconomy there tax policy in favour for the importers
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SINGAPORE:
Time analysis of productin a country
1- verypoor
2- poor 3-medium
4- good 5- verygood
%weight
factor
Result-(grading x
weight)
GDP (economic) 5 10% .5
Labor(economic) 5 10% .5
Infrastructure(economic) 5 10% .5
Unemployment
level(economic)
3 5% .15
Demographic(social) 4 15% .20
Incomedistribution(social)
3 15% .45
Online
shopping(technological)
5 10% .5
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Market size(economic) 5 10% .5
Tariff Rates(political) 4 15% .20
Total 100% 4.3
TABLE EXPRESSION
1. Current status of Economy in Singapore .GDP (2008 nominal prices):$179 billion. Annual real growth rate: 8.2% (2006), 7.7% (2007),
1.1% (2008). Per capita GDP (2008): $37,597.
2. Singapore has enjoyed virtually full employment for long periods oftime. Amid slower economic growth in 2003, unemployment rose to
4.6%. As of the end of June 2008, the unemployment rate was 2.3%.
In tandem with the global economic crisis and the economys
contraction, unemployment as of end-March 2009 rose to 3.2% and
resident unemployment reached a five-year high of 4.8%. Overall,
some of Singapores unemployment is attributable to structural
changes in the economy, as low-skill manufacturing operations have
moved overseas. Since 1990, the number of foreign workers in
Singapore has increased rapidly to cope with labor shortages. Foreign
workers comprise 25% of the labor force; the great majority of these
are unskilled workers.
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3. Singapore is well connected via sea, air and telecommunications to all parts of the world. Singapore Change Airport serves more than 60
airlines which fly to over 145 cities and has for many consecutive years
been nominated as the best airport in the world. Singapore is also
probably the most wired country in Asia, with an Internet penetration
rate of 42%. Housing ownership is encouraged by the government to
give citizens an asset in the country. About 85% of Singaporeans are
living in government-built housing.
1. Singapore unemployment rate is 3.3 % which is moderate.2. Singapore has been a country of immigrants since Sir Stamford Raffles
founded the island in 1819. Though the Chinese group is clearly the main
ethnic category, there are no precise figures available about the exact
population breakdown by ethnic groups.
The only official ethnic breakdown from the "Census 2000" shows:
Chinese 77%, Malay 14%, Indian 7.6%, other 1.4%, and (100% being
Singapore citizens + resident foreign population.
3. Empirical studies on income distribution in Singapore have pointed outthat income Inequality has increased.
4. The introduction of an EZ-link card - a contactless stored value cardwhere consumers need only flash the card in front of a card reader that
automatically deducts the required travel fare, is an example of the
continuous commitment by the government to make travel faster and
easier.
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5. Market size is favourable for the product.6. Tax policy in the Singapore is very favourable because of the developed
economy there tax policy in favour for the importers and exporters as
well.
SINGAPORE:
Relative competitive
Strength with
Regard
To the strongest
Competition
1-
very
poo
r
2-
poo
r
3-
mediu
m
4-
goo
d
5-
very
goo
d
%
weigh
t
factor
Result(
gradin
g x
weight
)
Product fit to market
demand
5 20% 1
Prices and condition 4 15% .45
Market presence image 4 10% .4
Marketing support 3 10% .3
Obtainable market share 3 25% .75
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Financial result. cash flow 4 10% .4
Total 100% 3.30
TABLE EXPRESSION
1. Singapore may seem like a small dot on the world map, but the island statebustles all over with attractions and activities. Dining and shopping are two
of the top-rated activities of locals. Singapore is also strategically located at
the heart of Asia and can be a hub to explore the Southeast Asian region
2. Prices and condition of the market is good as people in Singapore areinterested in quality product.
3. Ethnic districts such as Little India, Chinatown, and Malay Village give aflavour of the culture and history of Singapore. Lots of fun and funky events
such as the Great Singapore Sale, Singapore Arts Festival, festive light-ups
and many others make Singapore a most "happening" place to be in.
4. As Singapore is well defined market, market support is favourable for ourproduct.
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MAURITIOUS:
Relative competitive
Strength with
Regard
To the strongest
Competition
1- very
poor
2-
poor
3-
mediu
m
4-
good
5-
very
good
%
weight
factor
Result(
grading x
weight)
product fit to market
demand
5 20% 1
prices and condition 3 15% 0.4
market presence image 2 10% 0.2
marketing support 3 10% 0.3
obtainable market share 2 25% 0.5
Financial result. 2 10% 0.2
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Total 100% 2.65
TABLE EXPLATION
1. Because in Mauritius people have good earnings and one thing in which isfavourable for our business is they are very spendthrift.
2. Condition wise it is good because of good infrastructure and lesspopulation but in case of price there is GDP is less that is 5.7% so there is
price negotiation.
3. At present there is fair because Mauritius is an African country. Differentclass of people are there and basically they import from Singapore and
Honking etc.
4. In this country 37% are engage in the industry which is favourable for our business and because they have scarce natural resources and they import
more as compared to export as it is a tourism spot.
5. Regarding obtainable market they share only 37% who are engage in theindustry like apparels etc.
6.
Because of the scarcity of natural resources as the country is a island therethey import more of the things besides home furnishing so there is less
probability of business in that country.
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Market size(economic) 3 10% .3
Tariff Rates(political) 3 15% .45
Total 100% 3.65
EXPLANATION FOR ASSINING SCORES:
1. $1.511 trillion is the GDP till 2009.and 2.70% growth has been recorded forlast two years.
2. Canada is one of the world's wealthiest nations, with a high per capitaincome, and is a member of the Organization for Economic Co-operation
and Development (OECD) and the G8. It is one of the world's top ten
trading nations. Canada is a mixed market, ranking lower than the U.S. but
higher than most western European nations on the Heritage Foundation's
index of economic freedom
3. Following through on its Advantage Canada commitments, the Governmentof Canada is investing $500 million annually over the next six years,
beginning in 200809, in a series of new Labour Market Agreements
(LMAs) with the provinces and territories. These agreements will help
Canadians to reach their full skills and employment potential, and will raise
the productivity of Canadian business.
4. .Resources are allocated to the provinces and territories on a per capita basisand will give each province or territory the flexibility to focus on job
training programs and employment supports that will meet the local and
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regional needs of employers and workers alike. These supports will be
targeted to persons not eligible for assistance under Employment Insurance
(EI) Part II, including immigrants and other new labour market entrants.
Hands-on training and business experience is also vital for today's university
and college graduates
5. Infrastructure Canada is part of the Transport, Infrastructure andCommunities portfolio of the Government of Canada.
6. Infrastructure Canada coordinates the Building Canada federal government plan that guides investments in important national and local infrastructure
projects for building a stronger, safer and better Canada. Delivering
sustainable infrastructure such as highways, water treatment and wastewater
plants, public transit, and green energy is essential to competing
internationally and supporting the well-being of Canadiansin communities
big and small. Strategic infrastructure investment further important public
policy goals, including economic growth and environmental protection.
7. Since the early 1990s, the Canadian economy has been growing rapidly,with low unemployment and large government surpluses on the federal
level. Today, Canada resembles the U.S. in its market-oriented economic
system, pattern of production, and high living standards. As of February
2009, Canada's national unemployment rate was 7.77%.
8. Canada is a geographically vast and ethnically diverse country. Canadianculture has also been greatly influenced by immigration from all over the
world. Many Canadians value multiculturalism and see Canadian culture as
being inherently multicultural. Multicultural heritage is the basis of Section
27 of the Canadian Charter of Rights and Freedoms. Languages other than
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the two official languages are significant in Canada, with over six million
people listing one as a first language. Some of the most common non-official
first languages include Chinese (mainly Cantonese) (1,012,065 first-
language speakers), Italian (455,040), German (450,570), Punjabi (367,505)
and Spanish (345,345)
9. Income disparities shown as ratios (i.e., the top income group divided by thelowest or middle income group) reveal that families in the top 20% earned
between 7.2 and 9.5 times more than families in the bottom 20% in the
period 1980 to 2005. In the same period, families in the top 20% had an
income 2.2 to 2.6 times higher than the middle 60%. In 2005, the disparities
were among the highest in the previous 25 years, with the top 20% having an
average income 9.4 times that of the bottom 20%, and 2.6 times that of the
middle 60%. Again, a rise income disparity in Canada had a value of 30; the
third lowest among G-7 member countries in 2000 in the average after-tax
income of the top 20% might explain this increase.
10.Canada ranks as the 12th country in the world for Internet usage with 28.0million users, 84.3% of the total population.53.6% of Canadians connects to
the Internet using a type of high-speed connection, compared to 33.8% in the
US in addition. Habits of online Canadians differ greatly from Americans. In
particular, 48% of Internet users connect at least three times per day. The
most popular sites in Canada are the major international ones, such as
Google, Yahoo!, and MSN
11.The Government of Canada's Marquee Tourism Events Program is investing$100 million to promote Canadian festivals and events, with the intention of
increasing tourism to Canadian destinations. Funding from the Marquee
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Tourism Events Program will enhance the ability of the Montreal Fashion
and Design Festival to grow into a premier international event. Events such
as this, and others funded under the Program, have a tremendous effect on
Canada's tourist economy. So it will provide good market
12.Canada's copyright laws are unclear on the legality of some file trading. Ingeneral, the unauthorized copying or distribution of copyrighted material,
whether for profit or for personal use, is illegal under Canada's Copyright
Act. However, certain exemptions are made for fair dealing copying of small
portions of copyrighted works, for activities such as private study, criticism,
and news reporting. Furthermore, the Act allows that the copying of sound
recordings of musical works for the personal use of the person, who makes
the copy, is not copyright infringement. This is supported by a levy on blank
recording media, which is distributed to record labels and musicians. While
the unauthorized downloading or uploading of complete copyrighted works
such as books, movies, or software is illegal under the Act, the situation
regarding music files is more complex.
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CANADA:
Relative competitive
Strength with
Regard
To the strongest
Competition
1-
very
poo
r
2-
poo
r
3-
mediu
m
4-
goo
d
5-
very
goo
d
%
weigh
t
factor
Result(
gradin
g x
weight
)
product fit to market
demand
5 20% 1
prices and condition 4 15% .6
market presence image 3 10% .3
marketing support 4 10% .4
obtainable market share 4 25% 1
Financial result. cash flow 4 20% .8
Total 4.1
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1. As it comes under top ten trading markets and supports mixed economy. Peoplehere have craze for ethnic finishing. Canadian home furnishing market is still in its
growth stage. A lot of potential is untapped. Trends project that population favor
Indian products and large number of Indians are there so market demand is high.
2. Though very low economic disparity exists and prices of the products are
labeled in high terms as people have high purchasing power. As well as low
unemployment rate exists.
3. People have taste for Indian ethnic products and presence of large number of
Indians has created a good image about the ethnic products.
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MALAYSIA:
Time analysis of product in
a country
1-
very
poor
2- poor 3-
medium
4-
good
5-
very
good
%
weight
factor
Result-
(grading x
weight)
GDP (economic) 4 10% .4
Labor(economic) 4 10% .4
Infrastructure(economic) 5 10% .5
Unemployment
level(economic)
5 5% .25
Demographic(social) 3 15% .45
Income distribution(social) 3 15% .45
Online
shopping(technological)
5 10% .5
Market size(economic) 4 10% .4
Tariff Rates(political) 4 15% .6
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Total 3.85
GDP
A moderate growth was being marked in the year 2005 and 2006. Following a
robust growth in first of 2004 averaging 8 percent, the pace of economic activity
slowed in the third quarter to 7 percent.
While Malaysia's immediate economic horizon looks bright, its long-term
prospects are clouded by the lack of reforms in the corporate sector, particularly
those dealing with competitiveness and high corporate debt.
LABOUR
Malaysia's total labor force was estimated at 9.9 million. Of these, approximately
28% were in trade and tourism, 27% in manufacturing, 16% in agriculture; 10% in
services; 10% in government; and 9% in construction. Unemployment in 2001 was
estimated at 3.7%.
Negotiations between unions and employers are voluntary; strikes are permitted
but limited due to many restrictions. Child labor persists in some areas of the
country. There is no national minimum wage, but a minimum wage does exist on a
sector or region basis. Foreign workers have no legal protections and are prohibited
from forming unions.
INFRASTRUCTURE
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Increased purchasing power
Spending power has increased and there is greater consumer sophistication and
demand for quality. The effects of globalization mean consumers have a greater
awareness of designs from around the world, as well as a greater awareness of
good design in general, and this creates a market for stylish furnishing and house
wares. The improved economy also means that consumers are renovating their
homes and buying rental properties.
ONLINE SHOPPING
Malaysia is a technologically advanced country.
MARKET SIZE
Market size is huge as new property hubs are coming up, new hotels are opening&
even the income of people has increased which has made people more statues
oriented.
TARIFF RATES
Entry in the market is easy. And tariff policies are moderate.
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MALAYSIA:
Relative competitive
Strength with
Regard
To the strongest
Competition
1-
very
poor
2-
poor
3-
medium
4-
good
5-
very
good
%
weight
factor
Result(
grading x
weight)
Product fit to market demand 5 20% 1
Prices and condition 4 15% .6
Market presence image 4 10% .4
Marketing support 4 10% .4
Obtainable market share 3 25% .75
Financial result. 3 10% .3
Total 100% 3.45
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PRODUCT FIT TO MARKET DEMAND
Building more homes under the Ninth Malaysian Plan; Malaysia becoming a
property hub.
Growth in the hospitality industry affects the house wares market; Boom in
hospitality industry in 2007.
Malaysia becoming more cosmopolitan; New Lifestyles and new habits dictate
home furnishing choices.
Increased purchasing power; changing consumer spending habits.
Changes in the retail structure; One-stop hypermarkets.
PRICES AND CONDITION
Increased purchasing power
Spending power has increased and there is greater consumer sophistication and
demand for quality. The effects of globalization mean consumers have a greater
awareness of designs from around the world, as well as a greater awareness of
good design in general, and this creates a market for stylish furnishing and house
wares. The improved economy also means that consumers are renovating their
homes and buying rental properties.
MARKET PRESENCE IMAGE:
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The image of the product Home furnishing in Malaysian market is good as every
home or hotel uses this product. People are statues oriented due to high income; the
standard of living is high.
OBTAINABLE MARKET SHARE:
Market share of Home furnishing is considerable. Competitors like IKEA and
Mekie are present in the market with other small players but our product has an
edge having ethnic touch of Indian diversity.
FINANCIAL RESULT CASH FLOW
MARKETING SUPPORT
Changes in the retail structure
As it does for almost every other trend in the country, Kuala Lumpur dictates the
countrys trends in home furnishings and house wares styles. The growth in
concept specialist shops and one-stop hypermarkets offering home furnishings in
big cities threatens to drive traditional stores out of business. While in smaller
towns and cities, traditional stores may still prevail, it is only a matter of time
before trade is liberalized in Malaysia and traditional businesses that used to
dominate these sectors will have to find new ways to position themselves.
Good infrastructure facilities available.
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FINE SCREENING
WHAT IS FINE SCREENING?
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BASIS FOR FINE SCREENING
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SCREENING FOR OUR COUNTRIES
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country Time analysis Competitive
strength Total
singapore 4.3 3.30 7.6
canada 3.65 4.1
7.75
malaysia 3.85 3.45
7.30
mauritious 3.55 2.65
6.20
PRIMARY MARKET
CANADA
y Has high density of population, so it is easier to reach market.
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y Has highest GDP among all the countries under our consideration.y Per capita income is evenly distributed.y Trade barriers are not a big issue.y Commercial infrastructure is highly developed.y Market receptivity is high as compared to other countries.y High market growth.y Large market size which as large proportion of urban population.y Market consumption rate is very high due to presence of middle class.
SECONDARY MARKET
MALASIA, SINGAPORE
y High political-economic risk as compared to other markets.y Individualised strategies need to be formulated.y Falls under middle income countries, which is not favourable.y High income disparity.y Commercial infrastructure still need to be developed.y Slow market growth rate.y Not much of urban population, which does not offer large market.y Market receptivity is not very high.
TERTIARY MARKET
MARAUTITIOUS
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y Large income disparity between different classes.y Trade barriers are high, which is not favourable.y Commercial infrastructure still on developing roads.y Market consumption rate is not high,.y Market receptivity very low.y Not much of economic freedom.y Market growth rate not high.