Abstract
To introduce a new product in the market one has to conduct a feasibility study. Therefore launching of a product in a foreign country requires a critical analysis of the new market abroad before establishing that product. The market survey will take into considerations some factors such as culture, global organizational process, negotiations, global business ethics, and economy of that country. These papers study market expansion for Florida citrus fruit in the USA and the company plans to expand its market in France. A feasibility study is carried out for its new market in French society.
Introduction
Florida citrus fruit is produced in US accounting for more than 65% of citrus produced in the US. It harvests over 180 million boxes of citrus fruits per season. The industry of citrus contributes much to the economic activity of Florida. Also, it offers jobs opportunity to a large number of the citizen of US. The firm has the desire to enlarge it foreign market apart from just supplying to Canada and Japan. They want to expand to the new market in France that proves to offer a broad range of opportunity.
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Country analysis
The country in located in Europe and with a good infrastructure regarding roads, buildings, and airports, many persons associate culture of French with Paris which is a center of cuisine, art, architecture and fashion. Life outside lights city is distinct and differs by region (Talke & Hultink, 2010). French does not have diverse cultures. Historically, France culture was manipulated through Roman and Celtic cultures. France initially was known as the western side of German referred to us Rhineland.
French is the national language in for France. French is ranked as second most broadly studied foreign language accounting for more than 100 million students. Catholic is the most prevalent religion in France followed by Muslim. French people are having great pride of their country and government, and they get offended when one negatively comments on their nation (Talke & Hultink, 2010). They most believe in equality. France is among the top 10 developed countries in the world. They frequent use Euro currency and have a stable economy. The French people embrace passion and romance and are open on attitude outside marriage sex. France is a democratic country with a well-developed government system.
Exports are on a high rise to be of more significant for the success of the USA economy and private companies. Any business that is accountable for any global activity, probabilities are that a firm’s success in exporting will affect individual job performance and organizational values. Fortunately, assessing, identifying and selecting best foreign markets to venture in may result in company’s improving on their expected profits. However, choosing wrong markets may lead to great expenses and frustration. To avoid this one need a feasibility study of product development cycle. The aim of conducting it is to assess the viability of suggested citrus fruit in French market (Talke & Hultink, 2010). This will help in analyzing proposed product with due respect to performance objectives approximated by the firm. Florida citrus fruits will have to take into account following aspects.
Having a great understanding of consumers' tastes and culture is of significant. The product should suit societal norms and culture of French people. The country being famous regarding romance it could be perceived that introduction of the juice of high quality may take a significant portion of the market. France having no diversity in culture presents an excellent climate to operate a business with almost a unified culture.
Political France has stable politics based on pure democracy. It is not prone to violence or military coup as in may be in developing countries that could result in alterations of policies. This is because if social turmoil affects a country, disruption of activities may terminate one's business (Talke & Hultink, 2010). In additional new governments tends to reverse policy with consideration to an entire range of investing issues. These alterations may adversely affect the capability of the company to yield earnings and send home. The political stability of France thus supports proposed venture of Florida citrus fruit in their market due to available opportunities. The USA has a democratic kind of government under federalism system of governance, but it also has a stable political climate as France. The only difference is that the US uses a system of Federalism regime while France has a unitary kind of government.
Legal environment
The central government only legislates legal policies in France and then enforced across the country through various judicial arms. In an essence of accused being presumed guilty till proven innocent, one may be treated unfairly by courts favoring domestic agents (Talke & Hultink, 2010). France is perceived to have a centralized form of the judicial system compared to the US where the system of judiciary varies according to state. It is, therefore, important for one to familiarize him with foreign laws before venturing into a market.
Competitive product analysis
The cross-cultural communication problems that may occur due to variances in political social and legal structures are as follows; product design might not meet desired cultural preferences, for example, French people love cuisine and wine as compared to juice some it may take time for them to embrace it. Also, they tend to be the pride of their culture and nation compared to the US that has a multi-culture setting; any negative comments may lead to conflicts with them (Friar, 2015). The bureaucratic requirements frequently confuse and burden an individual, and these bureaucratic directives can be unpredictable when awarding tenders to firms. Unlike in the US where things are not bureaucratic as it may be but each state has to be given its mandate to regulate their own business and enact some laws including tax collection.
There are many competitors in the sector of fruits in France but Viva fruits and Agroforest Corp. that provides high quality and professional vegetables and fruits. The present market for these two companies in France is not that of dominant since other companies do supply fruits and vegetables. Most of them have specialized in supply of both fruits and vegetable. Many of these companies are deemed to proceeds well with their business (Friar, 2015). Florida citrus fruits could pose a challenge to them since it is well advanced in citrus fruit specialization compared to them to gamblers in the market trying to find out which products suits consumers demands. Consumers may be prepared to pay a cost effective priced based in mind that this is a developed country and most people have average income (Friar, 2015). There is the potential of making a good sale in citrus fruits sale since most o companies there do not supply quality products as of Florida citrus fruits.
Trade barriers such as high tariffs limits country's products access to their retailer's sector through foreign exchange measures of control (Friar, 2015). Trade barriers that are formidable can bar company’s products from accessing market, and sometimes necessary adaptations can require a larger investment that which an individual is willing to establish. If labeling and packaging of goods to not met requirements then overseas customs may seize products.
Company analysis
The primary factor considered in carrying out operations abroad is due to need to expand the market for increased production. The production is a position to take place in the vicinity of the city of Paris. This is due to ample provision of resources regarding labor and infrastructure is well developed to ease transportation (Friar, 2015). Products produced in a country are better placed to be purchased by home market compared to those manufactured in the US then exported to be sold there. Also, the capital per GDP is of significant in evaluating customer's capability to purchase imported products. France having well per capita GDP indicates that the business of citrus fruits will perform well.
The USA may use treaties to settle laws transverse borders. It is advisable to specify which law will apply to actions like the behavior of anti-competitive, arising from beyond their borders. The company will have to adjust to social and political aspects of a foreign country through respecting their regulations and laws controlling trade operations (Friar, 2015). The management will be required to adhere to how employment procedures are conducted in France and mode of the Directorate. The strategy for launching product may take into account free samples and cost efficiency and through advertising in media. Management could also involve a significant number of locals than foreign employees.
Conclusion
The feasibility study proves to be executable since all market requirements and documentations have been evaluated and show greater chances of success in Florida citrus fruits in France despite having many competitors on ground. The only competitive advantage a company has is quality and finance base.
References
Friar, J. H. (2015). Competitive Advantage Through Product Performance Innovation in a Competitive Market. Journal of Product Innovation Management , 12 (1), 33-42. doi:10.1111/1540-5885.t01-1-1210028
Talke, K., & Hultink, E. J. (2010). Managing Diffusion Barriers When Launching New Products. Journal of Product Innovation Management , 27 (4), 537-553. doi:10.1111/j.1540-5885.2010.00734.x
