Case study on MNC
In-Class Exercise – 2
Case of Clay-Ware Exports
Let us suppose you are in the business of clay-ware exports. You are planning to export to the following potential foreign markets.
Country – 1
Here only a small segment (about 7 percent) of the population is interested in the clay-ware. Primarily for home decorations, such as for planters to be put in outdoor gardens, and balconies. They also like terracotta to be used for wall décor. While most planters are of standard type the population does prefer to have some uniqueness in the terracotta designs. However, the population is quite large in this country. It has about 30 million people. The per capita income in terms of PPP in this country is $ 10,000 and the population which is interested in clay-ware is willing to spend an average of 5 percent of their annual income on clay-ware. The market for these items in this country is almost steady.
Country – 2
Here a large section of the population is eager to use earthen pottery, which is about 20 percent. Many prefer to use table and kitchen were made from this natural ingredient. However, this country has a small population, only about 10 million. The per capita income in terms of PPP in this country is $ 35,000. Of those who are willing to spend on such earthen products are willing to spend an average of 12 percent of their annual income on these items each year. These earthen potteries have short lives and usually they have to be replaced annually or bi-annually. Also the people are inclined to purchase new sets of items each year and they are open-minded about purchasing products from home and abroad. The market likes to see variety in products. The market for these items is gradually growing as more and more of the newer generation prefers to use environment friendly products for home and office use.
Country – 3
Here the population is quite large (about 27 million), but the people do not appear to have the same type of taste
Case of Clay-Ware Exports
Let us suppose you are in the business of clay-ware exports. You are planning to export to the following potential foreign markets.
Country – 1
Here only a small segment (about 7 percent) of the population is interested in the clay-ware. Primarily for home decorations, such as for planters to be put in outdoor gardens, and balconies. They also like terracotta to be used for wall décor. While most planters are of standard type the population does prefer to have some uniqueness in the terracotta designs. However, the population is quite large in this country. It has about 30 million people. The per capita income in terms of PPP in this country is $ 10,000 and the population which is interested in clay-ware is willing to spend an average of 5 percent of their annual income on clay-ware. The market for these items in this country is almost steady.
Country – 2
Here a large section of the population is eager to use earthen pottery, which is about 20 percent. Many prefer to use table and kitchen were made from this natural ingredient. However, this country has a small population, only about 10 million. The per capita income in terms of PPP in this country is $ 35,000. Of those who are willing to spend on such earthen products are willing to spend an average of 12 percent of their annual income on these items each year. These earthen potteries have short lives and usually they have to be replaced annually or bi-annually. Also the people are inclined to purchase new sets of items each year and they are open-minded about purchasing products from home and abroad. The market likes to see variety in products. The market for these items is gradually growing as more and more of the newer generation prefers to use environment friendly products for home and office use.
Country – 3
Here the population is quite large (about 27 million), but the people do not appear to have the same type of taste