Recommendations on a suitable market to enter, justifying its choice based on that country's competitiveness, political stability, infrastructure, economic growth and its overall market potential.

Essay by darrylhpUniversity, Bachelor'sC+, March 2006

download word file, 11 pages 4.6


JPW Home Style is a company focused on providing tailor made furniture for approximately eighty percent (80%) of its customers. With the company's increase of sales by 40% over the last twelve months, has led to the suggestion that there is need to expand beyond the UK market.

The choice of which market to enter has been driven by an assessment of the proposed country's relative long term growth and profit potential. With these criteria, Japan has been favoured, based on research into its competitiveness, political stability, infrastructure, economic growth and its overall market potential.

The Japanese market has tremendous potential mainly as a result of it's:

- Economic Stability

- High technological and infrastructure standards

- Buyer behaviour


Assessment was made, based on research using Doole & Lowe 12C framework (appendix 1), which focused on:

- Country

- Concentration

- Culture/ Consumer Behaviour


Contractual Obligations






Capacity to pay

Caveats (threats)

Economic Stability

The Japanese have experienced a major slump in their economy but is still deemed a major economic power house globally.

Its GDP real growth rate is 2.9% (2004 est.) which gives them the rating as the largest economy behind China and the USA. Major features of their economy include:

The working together of manufactures, suppliers, and distributors in closely knit groups called Kieretsu.

The guarantee of lifetime employment for a substantial portion of the urban labour force.

According to Cateora and Graham (2005)

'The stage of economic growth within a country affects the attitudes toward foreign business activity, the demand for goods, the distribution systems found within a country and the entire marketing process'. (Cateora and Graham 2005, p. 244)

High Technological and Infrastructure Standards

A strong infrastructure and technological standard, forms the...