Question

In: Economics

Moots is a high-end bicycle manufacturer located in Steamboat Springs, Colorado. Assume the company is considering...

Moots is a high-end bicycle manufacturer located in Steamboat Springs, Colorado. Assume the company is considering entering the Brazilian, Chinese, and Indian Markets. When conducting its market assessment, what economic factors should Moots consider to make its decision? Which market do you expect will be more lucrative for Moots? Be specific and justify your answer.

Solutions

Expert Solution

Since the company is considering entering the new markets outside their domestic market, it needs to do a precise economic analysis of all the 3 markets.

The key factors which Moots should consider are:

a) The general economic condition

b) Population size

c) Growth rate

d) Real income

To analyze these factors it might use the several indicators of GDP, HDI or Trade Patterns etc. of all the three nations individually.However, it should not completely rely on these datas but rather study well the people who can actually afford it's product or have enough disposable income to buy the product as it has been mentioned as a high-end bicycle manufacturer.

By analyzing the population size and growth rate, the company would know about it's potential marketing opportunities for now and also for the future.

And by studying the real income the company will also have the access to the economic conditions and economic stability of the country where it plans to run its operations.

The market more lucrative for Moots would be the Chinese market. This would be because of it's everyday growing economy and improving economic environment. The Chinese markets will also have more potential buyers for these high-end bicycles in comparison to Brazilian or Indian markets as the per capita incomes of Brazil and India are comapritively low than the that of the Chinese buyers.


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