Question

Discuss the business factors your company would research before venturing into the global markets. Each factor should be supported by an example.

a) Market demand: Analyzing consumer preferences in the target market.
b) Legal and regulatory environment: Understanding local laws and regulations.
c) Cultural considerations: Adapting products to suit cultural preferences.
d) Competition analysis: Identifying competitors in the global market.

Answer 1

Before venturing into global markets, it is important for a company to research market demand, legal and regulatory environment, cultural considerations, and competition analysis.

Step-by-step explanation:

Before venturing into global markets, your company should research the following business factors:

1. Market demand: This involves analyzing consumer preferences in the target market. For example, if your company is planning to introduce a new phone in a foreign market, you need to research the demand for smartphones and the features preferred by consumers in that market.
2. Legal and regulatory environment: Understanding local laws and regulations is crucial to ensure compliance and avoid legal issues. For instance, if your company plans to expand into a foreign market, you need to research the local labor laws, tax regulations, and any specific industry regulations that may apply.
3. Cultural considerations: Adapting products to suit cultural preferences is important for successful entry into global markets. For instance, if your company sells food products, you may need to modify the ingredients or flavors to align with the local culinary preferences.
4. Competition analysis: Identifying competitors in the global market allows your company to assess the competitive landscape and develop strategies to differentiate itself. For example, researching the pricing, product offerings, and marketing strategies of competitors can help your company position itself effectively in the market.