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Market Entrance - Assignment Example

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The Middle East has been an oasis for global business. Except for the early oil, this region now boasts of many other trading industries. Imports are an essential part of the life of the nationals in these parts, and this is evident in the numerous international stores that have set up their trading base here…
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Market Entrance Assignment
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Market Entrance

Download file to see previous pages... There is no tax and this generates a lot of revenue for the business houses. While this is a positive move by the governments, there is plenty of stakes for the natives. In order to generate income for their own people, the government of Qatar has remained realistic to the happenings. Like most Arab nations, the Government of Qatar too encourages foreign investment, particularly in joint ventures with Qatari partners. Wholly foreign-owned firms are permitted to operate in Qatar, provided they have a local agent or a sponsor. Foreign-owned firms and the foreign-owned portions of joint ventures are subject to corporate income tax, ranging from 5 percent to 35 percent of net profits. Qatari and GCC nationals and business concerns are exempted from the income tax provisions.
Qatar is part of OPEC nations in the Middle East. The nation is home to millions of expatriates who come from as far as Indonesia in search of work. The Asian community presence is conspicuous with Indians, Pakistanis, Bangladeshis, Pilipino, and Sri Lankans making up the majority. The 80s and 90s saw an influx of migrants because of the growth of industries here. Many multinationals, especially British and American oil companies set up huge infrastructures which required both skilled and unskilled labour to run them. With the influx of people, other industries began to move in. Today, Qatar is a thriving economy and must thank the millions of migrant workers here for this.
Multinational companies that seek to establish business here can do so with the participation of local Qatari partners. This ensures that a part of the gains from business remain within the country, and both the government and the local partners benefit. In such a scenario, would the entry of IKEA, result in a success for the company, and if so, how would the marketing planners define their strategy
3.0 IKEA

IKEA, the leaders in economical and fashionable furnishing company that styles on European flavour, began its long journey since its inception. IKEA works with the concept of offering a wide range of well designed, functional home furnishing products at prices so low, that even the most lower strata of society would be able to take home a product of international quality. IKEA believes in quality and affordability, a hall mark of true marketing genius. Rather than selling expensive home furnishings focused on the elite of society, the company makes it possible to serve the many by providing low-priced products that contribute to helping more people live a better life.
Franchise opportunities are available in unrepresented areas and IKEA believes in equal opportunity for all its associates. IKEA works with the idea of understanding and servicing areas with the help of their local associates. This is a key to their success as well. Once the local taste and demand is identified, it becomes easy to attract business. This way, the company manages to save on R&D and spend more time in innovation. Franchisee is an ...Download file to see next pagesRead More
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