Entry Plan into International Market

Introduction3

Country Profile3

Geographic and Historical data3

Political and Legal Environment4

Business Customs and Practices4

Economic Environment5

Socio Economic Analysis5

Possibility and Feasibility6

Market Structure and Analysis6

Currency Considerations7

E- Commerce7

Impact of Regional and Global Trade Integration8

Potential trade volume8

Marketing Mix8

Product8

Price9

Place9

Promotion9

Key Cultural Dimensions10

Key Reasons for Entering the Market10

Potential Risks for Expansion11

Benefits of Expansion12

Operational Strategies12

References14

Entry Plan into International Market

Introduction

The company that I have chosen is ExxonMobil, and the country is Africa. ExxonMobil is globally renowned as one of the leading firms in oil and gas industry. It is a market leader in the petrochemical and energy sector (Exxonmobil.com, 2013). Africa is a region where expansion possibility from Exxon can lead to high revenue generation. The oil and gas industry in Africa is growing rapidly with different firms from the energy sector trying to tap the market; therefore it will be a great move by Exxon to enter the African energy and petrochemicals market. Our market entry plan will focus on South Africa, as it will be a good starting point, and then further expanding upwards to other African countries.

Country Profile

Geographic and Historical data

The oil and gas industry of South Africa has a total market value of $23 billion as of 2012. The market volume of oil and gas sector increased in 2012 by 2.4%, reaching a volume of 249.1 million barrels. The largest contributor to this industry is the crude oil sector, which accounts to be 89.2% while the other sector is that of natural gas, which contributes 10.8% to the industry. Geographically South Africa's contribution in the oil and gas industry amongst the Middle East and African nations (MEA) is 0.7%. It is forecasted that this industry would increase in terms of market value and total volume over the next five years. The market is value is expected to increase by 13.5% and total volume to increase by 9.5% from 2012 to 2017 (MarketLine Advantage, 2013).

Political and Legal Environment

South Africa has maintained healthy relations with its neighboring countries and international organizations. This has strengthened South Africa's political position globally. South Africa is ranked well than other African nations in terms of governance of its government. The policies introduced by the governing party of South Africa (ANC party) have focused on employment, redistribution and growth. Thus, this political stability has helped South Africa to develop and attract foreign business to start their operation in Africa. It has made South Africa a major shareholder in the international economy (MarketLine Advantage, 2013).

Another factor that has attracted the foreign investors to South Africa is due to its legal system. The legal framework allows foreign investors be secure and tried on the same terms in courts as South African citizens. The protection of intellectual property through patent, trademarks, industrial design and copyrights has further boosted the influx of foreign investment. Laws, such as Intellectual Property Law Amendment Act, have been acknowledged on the international forum for the protection of rights of foreign and local firms.

Business Customs and Practices

South Africa consists of people for different ...