COUNTRY ANALYSIS

Country Risk Analysis and Assessment

Country Risk Analysis and Assessment

Introduction

In most cases, when introducing a new product to a new country, various factors need to be considered. A new product needs to be evaluated on the basis of its acceptance in the new market. There are other factors that need to be considered such as economic risk, political risk, market risk etc… In order to successfully launch a product in the new market, a thorough investigation needs to be carried out to allow a comprehensive understanding of the new market's dynamics. Based on the success of this evaluation, the degree of the product's success in the new country can be determined. The products under evaluation are a portfolio of frozen foods, and the market to which these products will be sold is in Pakistan. By keeping these details in mind, companies can utilize various resources, allowing them to understand the country in consideration and the impact their product will have on that country's market.

Product Analysis

Product's Fit with Culture

About a decade ago in Pakistan, only the men in particular families were the sole earners. Most of the women stayed at their homes taking care of their children or their houses. However, during the past decade, more and more females in the urban areas of Pakistan started working at different jobs (Khan, 2007). As a result, these women were void of extra time which they had used to cook food at home thus the demand for readily available and cooked food increased substantially. Most of these families relied on fast food restaurants to provide both themselves and their families with food. During the last few years, many families became health conscious, but the food provided by such fast food restaurants were not considered as healthy or nutritious. For these reasons, in Pakistan, the demand for healthy, easily prepared and readymade food increased.

Product's fit with Politics

In Pakistan, there are various food laws concerning the sale of foods. The product in discussion will comply with all the published food laws in Pakistan. For example, certain food products such as pork and wine are not permissible to the Muslims in Pakistan. The food sold will not contain any ingredient considered non-permissible by the majority of the Pakistani Market. In addition, there are certain ways in which the meat must be prepared. The company will have to ensure that the product complies with all the regulations concerning the preparation of the meat products.

Product's fit with the Country's Economy

In Pakistan, the food industry is one of the biggest and the most lucrative business in the market. This fact is evident as several new food restaurants are developed on a monthly basis hoping to cash in on this fast growing industry. There are various groups and companies that encourage food businesses to invest in Pakistan. Pakistan is considered a developing country in which poverty is very high. However, many individuals in the urban area are quite well off compared to the people living in the rural ...