Globalization: Fiji Island

Globalization: Fiji Island

Over the past 20 years, the Fijian economy had an annual growth rate of 2.7%. (CIA-World Factbook, Feb. 8, 2007). Their economy has been doing poor due to the high cost business environment. The qualities of their infrastructure are not even up to standards and doing business with the communication company and their airport are very expensive. The financial and legal systems are hard to access without a high cost. The tax rates on companies are 31%.

Fiji's commercial legal framework is outdated and can not support modern business transactions. Fiji's business laws require procedures that incur high transaction costs for business and increase the risk of enforcing business deals. The legal system requires a broad range of costly licenses and registrations, particularly for the locals. The problems of delays arising from investment approvals have been documented in several other Asian Development Bank (ADB) reports. Recently a joint World Bank/FIAS initiative has begun to tackle the problems of regulation and delays in investment approvals; this report strongly endorses the initiative. Within our global business venture for security service implementation in the Fiji Islands, there are several marketing mix factors which may pose risks to be managed. The marketing spectrum is extremely broad, but we will focus on possible risks for the Four P's of Marketing. The Four P's consist of the product, price, place, and promotion for our security service. The product will be the security service that we will offer in Fiji. The service will consist of private and organizational securities and the availability of personal bodyguards. The current condition in Fiji is lacking stability and an increased tension between the military and the government has created the need for the installation of our security service. There could be potential risks related to this product. One major risk would be the possibility for more turmoil due to sudden change. The development of a partnership from the government and military would be a must to manage this risk.

The next market factor is the price of our service. The risks of this factor would include finding the right price for the service. Management will take into consideration the median salary of the islands and develop a price on that figure to help minimize any risks related to price. Lastly, the place and promotion market factors could face very similar risks. With over 325 Fiji islands, the ability ...