Topic > Globalizing a Product - 1582

Whether to go global or not?Course: Introduction to MarketingAssignment: "Whether to go global or not?"Before deciding whether to go global by selling Bjni in Georgia, we need to understand the marketing environment of La Georgia, demographic, economic, natural, political, cultural and technological forces, test consumer behavior, analyze competitors. At the end of our research, we will come to the conclusion whether Bjni should go global, entering the Georgian bottled water market, or the Sukiasyan family should sell the company. Macroenvironment of GeorgiaGeorgia is a small country (69,700 km2) with a population of approximately 5.1 million. The largest diaspora in Georgia is Armenian (about 8.1%), which is a very important factor for an Armenian product in Georgia. Life expectancy is 64.8 years. In 2006 Georgia's GDP growth rate was 8.8%, making Georgia one of the fastest growing economies in Eastern Europe. According to the World Bank, Georgia is “The world's number one economic reformer” because in one year it went from 112th to 18th place in terms of ease of doing business. Recently the government reduced the number of taxes from 21 to 14 and introduced a flat income tax of 12%. It significantly reduced the number of licenses required by a business and introduced a “single window” system that allows an entrepreneur to open a business relatively quickly. Georgia is a low-income developing country, but it also has rich segments of high-income consumers. This makes Georgia attractive for starting a business. The political regime of the republic changed several times during the period of independence and the country suffered extensive internal clashes, sometimes characterized as civil war. The clashes between the opposition and the government last November and the tensions that arose in view of the upcoming parliamentary elections in May will most likely lead to further chaos and political instability in the country. In 2006, trade relations were plagued by politically motivated disruptions when Russia imposed bans on all Georgian exports of wine, fruit, vegetables and mineral water. The unstable situation in the country will definitely affect business. In terms of government bureaucracy, Georgia has improved a lot recently and nowadays we should note that the government operates an efficient system to help foreign companies invest. In the particular case of Armenia and Georgia, we should note that both countries are part of the same international trading system (WTO). In terms of culture, Armenia and Georgia are very closely related.