Approach to foreign markets (AME): A comparative study
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Each country and each region has its own peculiarities with respect to culture and legislation. So, when a company is looking to export goods to another nation, it is obvious that the importing nation will question the product i.e. its packaging and other things connected to it. To obtain the optimal conditions for export, the company must consider the different opportunities open to it in the target nation.
As part of our academic career, we had to select a country, whose market would welcome French imports with openness. We chose to study the markets of two countries located in the same continent: America. These countries were chosen from the same continent, as the distance between France and these two countries was the same. After conducting several searches, we found three countries that aroused our curiosity: Brazil, Argentina and Mexico.
After a joint discussion, we opted to study the import markets in: Argentina and Mexico. In this document, we will present the different criteria, which are similar between these nations, and also criteria that make them stand apart. To approach these foreign markets better, we were asked to place ourselves in the place of a French company that was exporting a product, and study the optimum conditions for export i.e. to analyze the most profitable market for the company.
We decided to work on the segment that exports sporting goods, bicycles, in particular. As part of this analysis, we will describe the two selected countries in the first part. Then, in the second part, we will discuss the positioning of the product that has been chosen to be exported. Finally, in the last part, we will discuss the various technical and commercial constraints involved in exporting bicycles to these two nations.
Mexico occupies an area of 1,967,183 square kilometers or four times the size of France. It is located in Central America.
In early 2006, Mexico had about 106 million. Between 1900 and 2000, Mexico's population has multiplied by 7.2, while the world population was only by 3.7 in the same time.
The rate of population growth, which was still the order of 4% per year in the 80's, is now the order of 1.9% per year. There are just over 20 million households in Mexico, an average of 5 persons per dwelling.
This population is young: 45% of the population under age 20 and under 30 represent 63% of the population. The population density is 50 inhabitants / km ², it approaches 6000 inhabitants / km ² in Mexico City. In Mexico, 91% are literate and there are 2.15 million people.
Firearms are widespread and simple altercations can escalate. Crime in the capital has become a political issue.
Argentina, the eighth country in the world the extent of its territory (2796 400 km ²), is now the second country in South America after Brazil, its population and area.
In 2006, Argentina had 39 million inhabitants, 4.2% of immigrants settled mostly in the suburbs of Buenos Aires. The percentage of urban population reached 89.3%. In addition, 31.5% of Argentina settled in the metropolitan area of Buenos Aires.
The average population density (13 inhabitants / km ²) is not representative of the actual occupation of the territory. Between 1991 and 2001 the average annual growth rate of the population was 10.1%. The percentage of children under 14 years is 28.3% and that of adults over 65 years of 9.9%.
Argentina is a young country; the average age of residents is 27.8 years in 2001. The average life expectancy at birth is 73.8 years, 70 years for men and 77.5 years for women.
Tags: Mexico; Argentina; economy; demography; population; foreign markets