Assessing Foreign Markets Objective Research Global Markets

Assessing Foreign Marketsobjectiveresearch Global Ma

Before entering a specific foreign market with your business, it is important to conduct research to determine if a particular country is a viable candidate. globalEDGE ( ) is a knowledge web-portal that connects international business professionals worldwide to a wealth of information, insights, and learning resources on global business activities. In this assignment, you will use the globalEDGE site to determine if expanding your business to New Zealand is a good idea.

In this assignment, you will play the role of the owner/executive of an upcoming, cutting-edge company that produces video game console systems. Your company is considering entering the New Zealand market. You are free to imagine any type of video game company and any type of product (you can produce in the country or import, make alliances or set up a solo operation). Just make sure to evaluate if New Zealand’s infrastructure and logistics, along with any other aspects you find relevant in your research, are positive or negative for your potential move. Please include:

  • Introduction of yourself and your company
  • What is your target market?
  • What is their age group/income?
  • Do you need internet access to play your game?
  • Is the internet easily available in the country?
  • What is the economic and political climate?
  • What are the country ratings? (such as ease of doing business, corruption ratings, etc.)
  • Final decision of whether or not you will expand your operations to this country

Submit your presentation in the form of an Audio Podcast (3 to 6 minutes in length).

Paper For Above instruction

Expanding a business into foreign markets requires comprehensive research and strategic planning. For this assignment, I will assume the role of an executive leading a tech startup specializing in innovative video game consoles. The focus will be evaluating New Zealand as a potential market based on various economic, political, and infrastructural factors. This detailed research aims to clarify whether entering the New Zealand market aligns with our company's goals and capabilities.

Introduction of myself and my company: I am Alex Johnson, CEO of Nova Gaming, a forward-thinking company developing next-generation video game consoles. Our mission is to create immersive gaming experiences through cutting-edge technology, targeting tech-savvy consumers seeking innovative entertainment options. We operate primarily in the United States, with plans for international expansion to tap into global markets.

Target market characteristics: Our primary target market includes gamers aged 15-35, predominantly middle to upper-middle-class income brackets. These consumers are typically teenagers and young adults who spend a significant portion of their leisure time engaging with digital entertainment. They value high-quality graphics, fast processing speeds, and internet connectivity for online multiplayer gaming and content sharing. Reliable internet access is essential to deliver seamless gaming experiences and online features integrated into our consoles.

Internet accessibility in New Zealand: According to data from the OECD and New Zealand’s telecommunications providers, internet penetration in New Zealand is high, with over 90% of households having access to broadband internet (OECD, 2023). The country's infrastructure supports fast internet speeds, which are crucial for online gaming. Additionally, city centers such as Auckland, Wellington, and Christchurch boast widespread Wi-Fi availability, making it convenient for consumers to access online content.

Economic and political climate: New Zealand’s stable political environment, transparent governance, and fair legal system create a favorable backdrop for international business. The country’s economy is resilient, driven by services, tourism, and technology sectors. As per the World Bank, New Zealand ranks highly in ease of doing business due to simple regulatory procedures and effective legal protections. The government encourages innovation and foreign investment through various incentives and supportive policies (World Bank, 2022).

Country ratings: New Zealand scores well globally for ease of doing business (#1 according to the 2022 World Bank rankings), has low corruption perceptions (Transparency International’s Corruption Perceptions Index ranks it at 1st place), and maintains a robust legal framework protecting intellectual property. Such factors reduce risks associated with market entry and operations, providing confidence to foreign investors.

Infrastructure and logistics: The country boasts a well-developed transportation network, reliable electricity supply, and advanced communication infrastructure. This facilitates efficient distribution, importing/exporting logistics, and supply chain operations. For a gaming console company, these logistical capabilities are vital for timely product launches and after-sales support.

Final decision: Based on the research, the favorable economic and political environment, high internet penetration, supportive infrastructure, and the country’s openness to foreign direct investment, I recommend proceeding with expansion plans into New Zealand. Establishing a local presence—either through direct sales, partnerships, or alliances—would enable us to capitalize on the country's burgeoning gaming community and innovative market environment.

References

  • OECD. (2023). Digital Infrastructure Data. OECD Digital Economy Outlook.
  • World Bank. (2022). Ease of Doing Business in New Zealand. The World Bank Group.
  • Transparency International. (2022). Corruption Perceptions Index 2022.
  • New Zealand Government. (2023). Digital Strategy and Infrastructure Reports.
  • Ministry of Business, Innovation & Employment. (2023). New Zealand’s Innovation and Business Environment.
  • Statistics New Zealand. (2022). Household Internet Access Data.
  • International Telecommunication Union. (2023). ICT Development Index.
  • New Zealand Trade and Enterprise. (2023). Market Opportunities for Foreign Investment.
  • GlobalEDGE. (2023). New Zealand Country Profile.
  • OECD. (2022). SME and Entrepreneurship Policy in New Zealand.

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