Saturday, March 9, 2019
Economic environment Essay
The landed estate has been experiencing rapid scotch growth due to the change magnitude crude prices. Oil and Gas news report for more(prenominal) than 50% of its gross domestic product, which is 70% of government revenues and 85% of its export earnings. Qatars GDP is $ 85. 35 billion, GDP growth rate is 11. 2% with and inflation rate of 15. 2%. Realizing this edematous dependency toward oil and gas, nearly of the economic policies of Qatar are now focus on dealing with Qatars non-associated natural gas reserves and developing foreign and private setitures in non-energy sectors.The Qatari Government has been actively supporting foreign investments in non-oil sectors like power, telecommunication and real estate. The country is importantly influenced by the Free Trade Agreement which has made investments in non-oil sectors more attractive, including the tourism sector, real estate and trade sector. It is predicted that the flow of international investment in Qatar will incr ease due to this development program by the Qatari government. Nevertheless, the amount of international investment in Qatar will ride out on its oil and gas sector. Businesses from within the country also invest considerably on EU disdaines.Furthermore, the government is gamyschoolly committed to privatization of most of its state-owned businesses, like telecommunications, power and water sector. A more detailed tactile sensation on its trade activities revealed that the countrys enlargedst slice of exports are large machineries like aircraft, power generator plant, mechanical appliances, medical equipment, electrical machineries, and so forth Furthermore, the countrys investment and monetary environment is reported to be a source of concerns. This is true because high oil prices and strong economic growth has been accelerating the inflation level into a rate which is unstated to tolerate.This has substantial effect toward the real-estate and stock markets. The stock market has experienced a subject field in 2006, notwithstanding reports revealed that Qatar has much recovered from it. On the other hand, the real-estate prices perplex been rising to an alarming rate. These increases are partly fueled by high real estate financings. It should be noted however, that the Qatari government has been moderate the overall exposure to this sector, and thus, a real estate sector cushion is unlikely in the foreseeable future.Only prolonged low oil prices will dampen the development of the banking sector as well as other developing sectors in Qatar, and such occurrences are considered very exhausting to become a reality. 1. 1. 1. Cultural Environment The mountain of Qatar are super educated people with an overall high sense of business. 90% of the world is literate and school life expectancy is 13 years, which is a high number in any region of the world. People speak Arabic, only English are commonly utilise as a arcminute language. The people of Qatar consist of quite diverse origins. 40% are Arabic, 18% are Indians, another 18% are Pakistani, 10% are Iranian, etc.Life expectancy is high and infant mortality rate a very low with beneficial age structure for business activities. 1. 2. rivalrous assessment Considering the extremely developed economy and the abundant economic resources, Qatar should be considered as a highly agonistic environment. This is true considering the economic petition that the country has toward western countries, including the European Union. Qatar has maintained a strong and demonstrable relationship to the EU countries, which would naturally bring more attention of EU businesses, to visualize the Qatar markets.On the other hand, the Qataris themselves should be accounted as a contingent source of competition for retail and electronic products, especially the latter. As mentioned, Qatars most active sector recently is the electronic and machinery sector. Even though the machinery sector is not w ithin the realm of competition with retail products, but the electronic sector in Qatar means significant competition from local anesthetic players, especially when the sector is highly developed already. The positive aspect of expanding to Qatar is be one of the first foreign presences within the particular sector.Despite the competitive nature of the business environment, being one of the first players within the industry would significantly help the image of Brookstone. 1. 3. Potential Target Market Assessment Almost 80% of the countrys population consist of people aged 15-64, which is an active consumer. Nevertheless, research indicated that the most likely consumers of Brookstone are business society, followed by the average retail consumers. This is true considering Brookstones specialty in delivering customers with complete set retail choices, even the ones that are frequently hard to find in the general market.I believe that taking account of the rapidly expanding economy in Qatar, such offerings from Brookstone will be welcomed cordially by the society. 2. Market Entry Strategy In theory, it is safer for companies to follow the general steps of entering a foreign market. Those steps are coach exporting first, followed by joint ventures, establishing a sales representative and thusly establishing a full-fledged subsidiary within the region. Nevertheless, considering the retail nature of the business, it is highly crucial for Brookstone to have the first appearance in the market as trustworthy provider of peoples needs.Therefore, a more restrain approach by establishing stores within Qatar markets is a more suitable method acting for Brookstone. Nevertheless, several adjustments would be necessary considering that the company is entering a country with significantly different cultures and sensitive political views. It is important for Brookstone marketing managers to enter the lives of its customers and understand their perspectives in relation t o retail matters. That understanding could be used to create a more effective and market-reaching in-store marketing programs or out-of-store promotional programs.