This report helps in determining the various barriers faced by the UK based well established food retailer who wants to extend the business to Spain. The various political, social, economic and technological factors have been taken into account.
Spain is a strong economy, advanced infrastructure, and investor-friendly climate that have undergone considerable modernization and growth over the past two decades. This has positioned the country as one of the most dynamic markets in Europe today; Spain holds the fifth largest economy in Europe and ninth worldwide (World Bank, 2007). These developments have had profound effects on the consumer market and many industries, particularly the retail grocery and foodservice markets. (World Bank - July 2007)
Spain's 44.1 million consumers have developed a strong penchant for quality, convenience food products in recent years, a direct link to the country's economic advancements. Rising incomes and a growing middle class have particularly fuelled demand for processed food, ready-made meals and international choices. Furthermore, the country's annual influx of more than 50 million tourists makes for a thriving foodservice industry. These trends ultimately present great opportunity for foreign agri-food exporters looking to enter the lucrative Spanish marketplace. Grievink, J.W. (2007)
Ongoing improvements to Spain's business environment and continued economic developments have led to increased investment in the country. Spain has drawn in over US$344.5 billion in foreign direct investment (FDI) over the past two decades in areas such as technology, industry (e.g. chemicals, transport, machinery sub-sectors), and in advanced service sectors like tourism, administration, finance and marketing. Foreign investment levels totaled over US$25 billion in 2007. (World Bank - July 2007)
2. The Major Challenges Facing Companies Entering Into Spain Market For The First Time -
Market information: The amount... [continues]
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