foreign market analysis
Executive Summary
The purpose of this report is to design and examine a marketing plan for Bursagaz in order to internationalize their business operations by penetrating the Egyptian market. As with the expansion of any business, Bursagaz would face many challenges in exporting natural gas to Egyptian households which is their primary target market. In order to ensure a smooth entrance to the business environment of Egypt, Bursagaz would have to adopt a standardized product strategy because of the universal nature and application of natural gas. Secondly standardization would also benefit the company because the resulting economies of scale would reduce costs and the savings can be reinvested into the company’s promotional strategies. Another way for Bursagaz to reduce their costs is by using the existing distribution network of natural gas established in Egypt. The company positions itself in such a way to take advantage of the increased demand for natural gas because of rising consumption in Egyptian households. The pricing strategy that best suits Bursagaz is differentiated pricing, which would effectively hedge risks associated with global shocks to the gas market and various other political tensions.
Given the marketing plan suited for Bursagaz, the three year sales and expenses suggest that venturing into Egypt would be profitable for Bursagaz as well as for Egypt in terms of meeting their energy requirements.
2.0 Description of Target market
2.1 Political environment
Foreign companies have enjoyed the benefits in terms of incentives that the government provides such as the rights to own lands, equipment and capital in Egypt for business operations and the right to export from Egypt without licensing (Hassan, 2010). The volatile political environment in Egypt may be a barrier to entry for Bursgaz but sound marketing strategies may be able to overcome these issues.
2.2 Economic Environment
Egypt has a GDP of $262.8 billion and GDP per
The purpose of this report is to design and examine a marketing plan for Bursagaz in order to internationalize their business operations by penetrating the Egyptian market. As with the expansion of any business, Bursagaz would face many challenges in exporting natural gas to Egyptian households which is their primary target market. In order to ensure a smooth entrance to the business environment of Egypt, Bursagaz would have to adopt a standardized product strategy because of the universal nature and application of natural gas. Secondly standardization would also benefit the company because the resulting economies of scale would reduce costs and the savings can be reinvested into the company’s promotional strategies. Another way for Bursagaz to reduce their costs is by using the existing distribution network of natural gas established in Egypt. The company positions itself in such a way to take advantage of the increased demand for natural gas because of rising consumption in Egyptian households. The pricing strategy that best suits Bursagaz is differentiated pricing, which would effectively hedge risks associated with global shocks to the gas market and various other political tensions.
Given the marketing plan suited for Bursagaz, the three year sales and expenses suggest that venturing into Egypt would be profitable for Bursagaz as well as for Egypt in terms of meeting their energy requirements.
2.0 Description of Target market
2.1 Political environment
Foreign companies have enjoyed the benefits in terms of incentives that the government provides such as the rights to own lands, equipment and capital in Egypt for business operations and the right to export from Egypt without licensing (Hassan, 2010). The volatile political environment in Egypt may be a barrier to entry for Bursgaz but sound marketing strategies may be able to overcome these issues.
2.2 Economic Environment
Egypt has a GDP of $262.8 billion and GDP per