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This report will analyze three main target markets (EU, Japan, Korea) for our company in the world field. I will give the advantages and disadvantages in the following details.

Extracts from this document...

Introduction

Introduction to the report David Ricardo (1772-1823), in his theory of comparative costs, he suggested that countries will specialise and trade in goods and services in which they have a comparative advantage. (David Ricardo, 1817) In this case, the developing of US computer market speaks volumes for the comparative costs theory of David Ricardo. US have a comparative advantage on the computer industry. These kinds of technologies US lead the whole world. Now, the US computer market entry into a maturing phase. So we using our comparative advantage condition let our products developing in other countries. This report will analyze three main target markets (EU, Japan, Korea) for our company in the world field. I will give the advantages and disadvantages in the following details. Evaluation of three main target markets Basic economy environment and demographic of three markets America is an advanced country of science and technology. This point can be seed very obvious in their computer, hardware and software field. Developing and updating in this area is very fast in the U.S. I think the most important markets in the whole world of our company are European Union, Japan and South Korea. The E.U. is biggest market in this case; I just set a few examples (some countries belong to the E.U.) here to explain why it is important. First let we look at the population and basic economy of these countries Table 1 Population 2003 (million) Age15-64 % 2001 Gross Domestic product $ billion 2003 Gross national income $ billion GNI Per Capita $ Import of goods & services %of GDP 2001 U.S.A 291.04 66.2 10,445.6 9,780.8 34,280 15 Japan 127.48 67.9 4,645.62 4,523.3 35,610 10 E.U. France 59.58 65.1 1,869.81 1,380.7 22,730 26 Germany 82.41 68.3 2,592.01 1,939.6 23,560 33 UK 59.07 65.4 1,824.7 1,476.8 25,120 29 Korea 47.43 71.8 500.12million 447.6 9,460 41 As we know, France, Germany and UK are the biggest countries in the E.U. ...read more.

Middle

Because of the developing of EU countries are very similar, so, according to the situations of the UK personnel computer market and hardware, software markets, we estimate the EU computer market has definite potential of development. SWOT analysis of EU market Strengths * The market size of EU is similar with American. * The economy scope also similar with American. * The total population of EU is much higher than American. * From the culture view, there is nearly no or just a little bit culture gap between EU and U.S. * The EU has a relative stabilization of their polity environment, and EU and U.S both is member of WTO. So there are no troubles with the tariff wall between the EU countries and the U.S. * USA computer companies held 70% of the EU personal computer market. This means, EU market is a familiar market for US Company, and it can help us save a lot of research time and money. Weakness * Some of EU countries do not speak English, so, in our products, we should have some translator tools, improve this kind of technology should spend more, and it will increase our products' cost. * Lots of local brands developing fast in EU countries. That means when people buy the products, they may first consider their own brand, which is a very big problem. * The exchange rate has been being a problem for our export products to the EU market. Because of the appreciation of a currency in EU market, it will let their import price reduces. So that will become a serious problem of our products. Opportunities * Some repots said the EU market tended to follow the USA market by about 2 or 3 years. This data means our computer technology develop faster than EU market, so, when U.S computer market round into the maturing phase and gradually slowing down, EU market is developing at the moment, this market is not in the maturing phase, it needs more products. ...read more.

Conclusion

So, I think the EU market is the most suitable market for investment for our company. Why I think the Korea market is last one? Because Korea if far away from USA, that make a very big culture gap, and Korea is a growing country, before we entry this market, we should do a lot of researches and evaluation. Because of the geography factor, I think when we entry into the EU market, we can use our products directly. For the Japan market, I think we should better sale our technologies to them, because Japan have so their excellent machining technique. So, they better than us on produce products. However, we have the advance technology. For the Korea market, I suggest we would better choose a local participator. Because of we are not familiar with that market, and we can reduce the cost if we do this. All above information is I give for the three markets choice and some suggestion for these three main target markets. I wish our company will be very successful in these three markets. References David Ricardo. (1821), The Principles of Political Economy and Taxation, third edition, London: John Murray, Albemarle-Street. Carol, S. Carson, Director, (2003), International Financial Statistics Yearbook 2003, IMF statistics Department, Vo1, LVI, Prepared. Organization for Economic Co-operation and Development: Education at a Glance, OECD indicators, 2001, Head of Publications Service 2002, p.44, p.67. United Nations Development Programme, 2002, Human Development Report, p.149-189, Oxford University Press. Jacob Howard, 2001, Computer Hardware Market Report 2001, Fourth Edition, p.6, p.7, p.13, p.58, p.67. Jacob Howard, 2001, Computer Software Market Report 2001, Fourth Edition, p.51. Dominic Fenn, 2003, Computer Hardware Market Report 2003, Fifth Edition, p.60. Jean-Claude Usunier, 1993, International Marketing a cultural approach, Prentice Hall International (UK) Limited, Campus 400, Maylands Avenue Hemel Hempstead Hertfordshire. The World Bank Group, Population dynamics Table, available: http://www.worldbank.org/data/wdi2003/tables/table2-1.pdf The World Bank Group, Size of the Economy Table, available: http://www.worldbank.org/data/wdi2003/tables/table1-1.pdf United Nations Development Programme, Human Development Report 2003, Human Development Indicators, The structure of trade, available: http://hdr.undp.org/reports/global/2003/pdf/hdr03_HDI.pdf ICT at a glance (Korea, Rep.), available: http://www.worldbank.org/cgi-bin/sendoff.cgi?page=%2Fdata%2Fcountrydata%2Fict%2Fkor_ict. ...read more.

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