International Market Research and Competitive Analysis | Document

RUNNING HEAD: INTERNATIONAL MARKET ANALYSIS
MANAGEMENT
INTERNATIONAL BUSINESS ENVIRONMENT

INTERNATIONAL MARKET ANALYSIS 1
Executive summary
Analysing international business environment is an essential step for entering the global
market. The Jordan based company engaged in pharmaceutical business is seeking for market
entry for business expansion.
The Qatar government charges low corporate tax than Lebanon government. The Qatar offers
better economic environment in terms of Gross Domestic Product, Per Capita Income,
Inflation and Unemployment rate. It also offers favourable technological and ecological
environment. Additionally, both the countries provides passable social and legal
environment. Based on industry analysis of both the countries, they offer opportunities from
low customers bargaining power, low threat of new entrant, and low suppliers power. The
Hofstede cultural dimensions depicts that both the countries have attained different score than
Jordan (home country).
Elements such as fine population strength, better ranking in innovation index, low health
status and low long term orientation are responsible for choosing Qatar and Lebanon for
market expansion. There are multiple strategies to enter in the market. It mainly includes
direct exporting, licensing, franchising, partnering, and joint venture. However, each has its
own pros and cons. For market entry in Qatar and Lebanon, Joint Venture strategy is best
suitable. This will benefit in gaining higher resources, support, better knowledge about the
host country (Qatar and Lebanon) customer and market. The company should enter first in
Qatar as it provides more attractive business environment than Lebanon.

INTERNATIONAL MARKET ANALYSIS 2
Contents
Introduction................................................................................................................................3
Environment Analysis................................................................................................................3
External Environment.............................................................................................................3
Industry opportunities.............................................................................................................4
Hofstede cultural dimension...................................................................................................5
Choice of Country......................................................................................................................6
Market Entry strategies..............................................................................................................7
Appropriate market entry strategy.............................................................................................8
Implication..............................................................................................................................8
First entrance..........................................................................................................................8
Conclusion..................................................................................................................................8
Bibliography.............................................................................................................................10
Appendices...............................................................................................................................13

INTERNATIONAL MARKET ANALYSIS 3
Introduction
The report focuses on the concept of ‘International business environment’. A careful analysis
of international business environment is essential for smooth business operations (Cantwell
et al., 2010). It reflects around an entrepreneur of medium sized company engaged in
pharmacy business in Jordan. It involves analysing two countries for appropriate international
markets. Emphasizing on report structure, the initial part includes the environment analysis of
two countries named Qatar and Lebanon. It involves the use of PESTLE framework. This
section also comprises of Industry analysis of both these countries. Additionally, it involves
the application of Hofstede Cultural Dimensions to gain an understanding about the
countries. The next section comprises of various reasons of country selection for market
expansion. The passing segment includes evaluating multiple market expansion strategies. It
also includes the implication of each strategy. Lastly, it includes choosing the suitable market
strategy for entering in Qatar and Lebanon.
The key objective of the report is to discover and analyse two appropriate countries for
market expansion of pharmaceutical company.
Environment Analysis
External Environment
PESTLE Analysis
It is a framework to evaluate the external business environment of a country. It takes into
account six factors named Political, Economic, Social, Technological, Legal, and
Environmental (Ho, 2014). It involves evaluating these factors in terms of Qatar and
Lebanon.
Political factor: It includes elements such as government integrity, corporate tax and trade
restrictions. In Qatar, the Corporate Tax Rate (CTR) for foreign companies is mere 10%. The
government impose low restrictions on the entry of foreign companies. Additionally, fine
government integrity prevails in the country (Heritage, 2019). In Lebanon, the CTR is
15%. Moreover, the cost of starting business is subsequently high in the country. Political
instability is seen in the country (Heritage, 2019).