Running head: EXPLORING GLOBALIZATION

Phase 1 Individual Project 1 Exploring Globalization Khushboo Kataria Colorado Technical University July 14,2008

Abstract This is a preliminary report which identifies countries most likely to be interested in PM Co.'s mobility product. In addition, the report highlights potential opportunities and risks associated with each of the three countries identified in this report.

It is crucial to analyze and identify the types of trends that might hinder the sale of our mobility products in the potential target countries and or international markets. The trends of the mobility industry tend to occur outside the mainstream market of consumer models such as that of computers electronics or cars. The mobility industry is mostly affected by economic, political and social and or technological factors that cultivate a distinctive model, which goes far beyond simply producing widgets for customers buying widgets. In addition, there are several differences between selling our products within the United States and selling in another country. For example, the sale of mobility products in the United States is regulated by governmental bodies such the FDA, or the insurance companies both private and governmental. These entities dictate product requirements and strictly allotted funds as the purchase criteria. Therefore, if the economic and political factors do not allot necessary funding the product is then removed from the market regardless of the consumers wants and needs. Thus, if a mobility product that is widely distributed it must adhere to economic and political factors, like meeting the criteria of the insurance company. Therefore, economic and political tides of contribution to product trends and funding appropriateness can not be overlooked; because just like the United Sates majority of the mobility products in foreign markets are funded through insurance companies. The social structure of a country is another prominent factor in the foreign markets. We need to decipher what our international consumers want from our mobility product. Social factors like color trends, types of terrain in different countries affect mobility products as well. Out of all the factors that may affect our final product, social factors seen to have the simplest connection between the consumers and product. However, economic and political factors tend to function as a filter between what is needed and desired versus what is produced, funded and obtained.

Therefore, it is important for our technology to meet funding and regulatory requirements in all the countries, which maybe our potential markets. The economical, social and political factors can and do influence trends in mobility technology than any other industry. Computers for example, are virtually everywhere through out Europe and the United States. Thus, allowing the computer industry to constantly produce and see the utmost level of technology. This is the chain of supply and demand in its purest form. Where as the mobility industrys supremacy on technology is not influenced by supply and demand but by economic and political factors that are beyond the consumers whats and needs. Thus, in my opinion the three countries that can be beneficial to our sales operation are: United Kingdom, Japan, and Singapore. United Kingdom United Kingdom is located in the western part of Europe. U.K. can prove to be very opportunistic venture for PM Co. due to its population, location and European Union membership. "United Kingdoms economy is one of the strongest in Europe as inflation, interest rates and unemployment rates remain low" (U.K. Economy, 2007). In addition, to which U.K. had the economy consists of 1.782 trillion dollar Gross Domestic Product and "is a leading trading power and financial center" (U.K. Economy, 2007). Over the past twenty years the government has significantly increased social welfare programs and decreased public ownership. Furthermore, even though United Kingdom is known to have one of the unsurpassed healthcare systems in the world, it also has problem areas similar to that of the United States which need improvement. In addition, the British government has recently improved health care access with the second phase of its National Health Service. This has created an excellent opportunity for PM Co. due to the similarity not only religion, social structure and language but also in

procedures and policy. Also, financial availability which is another excellent opportunity for the company. Besides, the current NHS initiative in U.K. follows and initial series of reforms that have been proposed for the purpose of improving the quality and availability of health care services provided by NHS" (UK's Health Revolution, 2008). However, unlike most of American consumers, British consumers tend to be well informed; hence creating awareness and brand image may be necessary with certain advertisements and promotions. In addition, we need to realize that just because technology is better than it predecessor it may not be feasible to market because the economic social and political factors may not allow it. The market is another great barrier among the British mobility product companies. Thus, "we need to use our economies of scale advantages while penetrating the European market" (UK's Health Revolution, 2008). Singapore Singapore is located in Southeastern Asia, and is considered one of the most developed countries in the world (Yeo, 1998). Marketing our mobility product can be very profitable for PM Co. because of country's high purchasing power. In addition, according to Singapore Statistics, (2005) the average life expectancy in approximately seventy seven years of age. Furthermore, the Singapore Statistics, (2005) predict a twelve percent growth in elderly population "over the next few decades which is considered to be on of the highest rates internationally (Singapore Statistics, 2005). This twelve percent growth will provide a great opportunity for Pm Co. because this is a potential increase in our target market. However the highly strict laws, strong cultural and religious beliefs and harsh punishment can be potential risks for expansion. In addition, ethics, morals and values in business are prevalent thought the country because the people are raised in a very traditional environment

where they are taught to value culture, family and authority. And all of these values are established in all their business dealings and are expected from their international partners. In addition, if PM Co. is to make its expansion/ business dealings to be prosperous in Singapore we need to be side by side of all the culture with in the country. Japan Japan is considered to be the most technologically advanced economy next to the United States and the third largest economy in the world. Thus, making it an excellent potential target market, Japan spends 7.6% of its Gross Domestic Product on health care, compared to 9.2% for Canada and 13.1% for the United States" (Ward and Piccolo, 2004). "Approximately 53% of the total health care expenses in the country are covered by insurance and 32.3% by the government and 14.8% by the patients co-pay" (Venture Japan, 2008). Meaning that the majority of the payments will be guaranteed if we are able to promote our product in Japan. SIS plans cover approximately 63% of the Japanese population, " which is delivered by about 1800 entities nationwide known as Health Insurance societies"(Health care in Japan, 2004). The annual income determines the amount of premiums which tend to be around 8.5% (Ward and Piccolo, 2004). The NHI covers remaining 37% of the Japanese population which is delivered through 3400 regional health care plans" (Health care in Japan, 2004). Premiums for people who are covered by NHI are determined by income, benefit payments and assets from the previous year. Since, Japanese health care is mostly "regulated by the government and health care providers that are predominately private hospitals and physicians" (Ward and Piccolo, 2004). Therefore, PM Co. will have to develop compelling relations with the said parties if we are to promote our product in the Japanese market. The majority of industrialized nations such as Japan are confronted with the ever

increasing amount of an aging population and a decreased birthrate. The economic growth of Japan has been sluggish for the past decade and continuously on a downward spiral. In addition, Japanese people rarely voice unhappiness or displeasure when they do not find something satisfactory. This means that the company will not have significant mount of feedback to improve the problem that may need improvement. Hence, PM Co. has to be careful in the Japanese market and avoid any mistakes related to cultural, quality and social choices.

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