BSB119 EAMPLE CONCLUSION
The Kingdom of Armorika could be a potential market to establish market for luxury goods. The market is characterized by 95% of citizen living in the urban area. The citizens in The Kingdom of Armorika can be said as wealthy because the GDP of the country is $350billion and the wealth were spread among 6 millions of people only. So the wealth spread among the country (GDP per capita) is relatively high, around $48,010; compare to China with a population of
1.36billion or U.S 319million. Therefore, citizens in Armorika could afford to pay a premium price for luxury goods as they have good spending power.
The Kingdom of Armorika has a population of 6 million; out of 6 million people,
95% of the population lives in urban area and only 5% of the population lives in rural area, which I assume that the production of food in the country to support the people living in Armorika is insufficient. This means that the demand for food is high and the supply is low. According to the law of demand and supply, when demand is higher than supply, price goes up. So it could be really successful and profitable to establish an agriculture business in Armorika. It is possible to achieve First Mover Advantage because Armorika import fruit and vegetables from other country, which show us that they had insufficient or no production of fruits and vegetable.
It is not recommended for manufacturing companies to start up business in The
Kingdom of Armorika because Armorika has a very high UN Human
Development Index at 0.9; that defines high Life expectancy, Standard of living and literacy rate. This outline the citizens of Armorika are very intelligent