International Business
Over the last several decades, globalization has been having profound impact on the way businesses are operating. This has created shifts in the markets for a wide variety of corporations seeking to aggressively expand into these areas to increase their overall profits. A good example of this can be seen with a study that was conducted by the UN Conference on Trade and Development. They found that nearly 90% of domestically-based companies would like to aggressively expand into other markets. This is significant, because it is showing the tremendous opportunities that globalization has created for businesses to be able to increase their overall profit margins. ("Companies to Boost Overseas Investment," 2011)
In the case of the Gulf Cart, this is providing an opportunity to begin aggressively expanding rapidly into the Bahamas. However, to ensure that the company can be successful over the long-term requires creating strategy that will account for all of the risks and opportunities of conducting business in a particular region. To achieve this objective we will examine a number of different elements to include: conducting a detailed analysis of the country and the strategy for marketing the product. Once this takes place, it will provide the greatest insights as to overall long-term financial benefits that can be realized from investing in the region.
An Analysis of the Bahamas
The Bahamas is a chain of islands that is located in the Caribbean Sea, just south of the coast of Florida. It encompasses a land mass 10,010 square km. Since the country was able to obtain independence from Great Britain they have been focused mainly on: tourism, international banking and management. These elements are important, because they are showing how there is the opportunity for the company to expand into these markets based upon the strong tourism and banking sectors. This means that these institutions and wealthy individuals will be interested in purchasing the carts for their properties (such as: golf courses and resorts). As a result, this would be the most logical market to target when introducing...
("The Bahamas," 2011)
Market Size
Demographics
The current size of the Bahamas is 313 thousand people. The age demographics of the population include:
0 -- 14 years old 24.4%
15 -- 64 years old 69.2%
65-year and over 6.3% ("The Bahamas," 2011)
Socioeconomic Factors
The Bahamas is one of the wealthiest islands in the Caribbean. This is because 60% of all of their GDP growth is directly tied to international tourism. As a result, many different resorts and hotels have been aggressively expanding their properties. This is part of an effort to keep up with the rising long-term demand. However, the economy did feel the effects of the recent global economic recession with it contracting by 3.9% in 2009. The average GDP per capita income is $28,600. ("The Bahamas," 2011)
Urban / Rural Factors
In general, the majority of the people that live in the Bahamas are urbanized with: most located in the capital city of Nassau. The below table illustrates the amount that live in an urban vs. rural atmosphere. ("The Bahamas," 2011)
Total Amount of the Population that Lives in Urban vs. Rural Settings
Category
Percentage
Urban
84%
Rural
16%
("The Bahamas," 2011)
The above factors are significant, because they are highlighting how the market is large enough to: support and distribute the Gulf Cart to a wide variety of consumers. As, the majority of the population can be able to: afford the product and there are a wide variety of businesses that would be interested in purchasing it. This means that if the company were to enter this market and go after the individual / business segments. They would be able to establish a major presence. ("The Bahamas," 2011)
Social Cultural Acceptance
The way that the product will be accepted culturally is to target it at: the resorts and hotels. This will allow everyone to: work with the Gulf Cart and see what the product is like. Once…
