Contents
This report is based on the following requirement - - Johnson & Martin Ltd (J&M) is a manufacturer of a popular line of clothing for young people. Their products are positioned as fashionable and of high quality. J&M is firmly established in its home market (UK), which is relatively saturated and has little prospects for future sales growth. Top management has decided to expand J&M’s clothing line to the Middle Eastern Region and have shortlisted three countries as potential markets: Turkey, Egypt, and Saudi Arabia.
- Assume you are a marketing consultant, and J&M have approached you to assess opportunities in the Middle Eastern Region. The following is the Research Brief you are given by Management:
- The Task
- “Considering J&M being a medium sized firm we want to expand cautiously and step by step. While operating in the whole Middle Eastern Region is a long term objective at first we want to identify the most prospective market to enter. As we want to know which of the three markets the firm should enter first, we want you to undertake a market opportunity assessment. In your analysis, examine the investment environment, effects of government interventionist policies, the market potential, the impact of regional integration initiatives, if any, and related issues with a clear identification of opportunities and threats in each of these markets. Recommend which country the firm should enter first, explaining why. Also suggest which market entry strategy is more appropriate, with justification. Resource wise, we are confident that we will have no problem to undertake the opportunities identified and recommendations proposed in your report”.
Description
Market expansion is one of the important growth strategy for organizations. Organizations need to understand the market and maintain a consistent awareness of barriers or challenges that it might face during entry or growth phase (Cavusquil, et al., 2011). Market opportunity assessment mainly incudes analyzing industry and segment attractiveness, market size and growth projections, competition, analysis of the strengths, weaknesses, opportunities and threats and identifying their entry strategy (Sparke, 2013). Organizations are seeing new growth opportunities and increased profits by expanding its business in the international market. There are increased risks in expanding business to international market due to differences in political and economic stability of the host nation (Areqbeshola, et al., 2012). This report assesses the market opportunity for Johnson & Martin Ltd. (J& M), which is a United Kingdom (UK) based clothing company and is aiming at expanding its business in Egypt, Turkey or Saudi Arabia. The report assesses the opportunities and threats for the company and provides recommendations for market entry strategy to enter the favorable nation.
