The market entry proposal starts with a PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis.
Country to enter: Saudi Arabia
Multinational company: Sheeny Company private limited
Product or service you want to bring to market: Packaged Apple Juice
Pestle analysis
Political factors: It has stable environment with spurts of unrest. People voice their concerns. It looks for sustainable development for its citizens. Focus fairness in global deals. It aims to make it knowledge based country. It is traditional Islamic nation. It scored 92nd rank for ease of doing business by World Bank. It is not very promising.
Economic Factors: It aims to have a very centralized plan for its growth through divestiture of public enterprises and diversifying its operations, but it suffers paucity of funds. Its areas beyond oil operations have witnessed growth but elite citizens are reluctant to give funds to government for boosting economy, they are not investing. Banks enjoy liquidity. People have fears in mind for market crash. This is not a promising development for foreign business. It suffers high unemployment.
Social factors: There is a shifting focus from religion to recreation. Women are becoming active through social networking platforms and fighting for their rights. The young men and women are now open to and embracing western values. Nepotism is widely prevalent. There are clear societal demarcations for foreign people. Fast food restaurant are commonplace. It is a bureaucratic society, so delays are seen when making decisions. Popular drinks are tea and coffee. Social factors are supportive of business. The apple juice can be positioned well in the market.
Technological factors: There is presence of internet and the nation plans to get fully digitized with more automated systems and Artificial Intelligence enabled processes by 2030. There is presence of educated skilled workers. It will be helpful for business to keep track on supply chain and other communications.
Legal factors: Civil Laws have roots in their religious book Quran, called Sharia. There are no laws on exchange control. Employees service contract are registered with ministry if they are immigrants. Employment law regulates labor who works there. This is strict for business. It is not very promising to open one’s own unit.
Environmental factors: The government focuses on environment friendly activities. There are clear rules and regulations for it. Businesses need to get clearance of business from its environmental agency before their operation. It is welcoming as apple juice is natural drink and healthy as well as packaging is environment friendly.
Given the analysis, Franchising can be good strategy to enter the market.
The market entry proposal starts with a PESTLE (Political, Economic, Social, Technological, Legal and Environmental) analysis....
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