Respond to two of my classmates discussion in 200 word for each discussion response. The questions asked for the original discussion was:
Compile a list of new terms and definitions that you have learned in this Challenge;
Watch the video on Airbnb in Africa and explain the opportunities and challenges that Airbnb faces in Africa. Do you think the company can succeed in that market?
Use the PESTEL Framework and apply it to your assigned country (if you don't have an assigned country or your assigned country is UAE, choose one of Nigeria, Ethiopia & Morocco as your assigned country). Select one of the following two firms (KIA, BMW) and use your PESTEL analysis to recommend which of these companies should invest in your country. Explain why. Here is a good SAMPLE PESTEL FOR THE UAE. You can use the Template, copy and paste it to your Challenge 3 answers.
Discussion of my classmate Isaiah:
Compile a list of new terms and definitions that you have learned for this challenge.
Global market opportunities are favorable combinations of circumstantial factors that offer profitable prospects for exporting, importing, investing, or partnering in foreign markets.
Global Market Opportunity Assessment (GMOA) is composed of six tasks, often pursued simultaneously – analyzing an organization’s readiness to internationalize, determining an offering’s suitability to its target customers, screening countries to identify target markets, assessing industry market potential, choosing foreign business partners, and estimating company sales potential.
The Global Connectedness Index ranks countries by goods, services, financial variables, people, and data and communication flows.
The Gradual-Elimination Screening Method for potential markets is a narrowing-down process that begins with macro-level indicators and progressively narrows down towards more specific indicators.
The Indexing-and-Ranking Screening Method scores countries by market attractiveness with ranked indicators and importance-weighted variables.
Industry market potential is an estimate of likely sales that all firms in an industry can generate over a given period of time.
Company sales potential estimates the share of annual industry sales that are expected to generate in a target market by one firm.
Watch the video on Airbnb in Africa and explain the opportunities and challenges that Airbnb faces in Africa. Do you think the company can succeed in that market?
Airbnb has an impending opportunity to expand its market share in the lodging industry from its original, pre-COVID share. As the world opens back up and international business travel and conferencing returns to its previous rates, Airbnb and other lodging establishments (hotels, motels, etc.) in Africa will compete directly with one another for bookings. Because these two groups are in direct competition with one another – Airbnb as a collection of individual self-employed businesses and hotels/motels as government-recognized establishments – Airbnb must present a more appealing offer than hotels, perhaps through price, cleanliness, or general experience.
Discussion of my classmate Alec:
Global market opportunity assessment is the process of combining circumstances, locations and/or timing that offer prospects for exporting, investing, sourcing or partnering in foreign markets.
Organizational culture is pivotal because key employees should possess the motivation and commitment to expand the firm’s activities into foreign markets.
Consumer electronics - emphasize countries with large populations, discretionary income, and ample electricity.
Micro-level next- size of the market, presence of competitors, import statistics, and the level of the country’s exports (because some countries function as transit points, not end consumers).
■ Dynamic process- Market conditions change, partner performance fluctuates and competitive intensity may increase. The six tasks of global market opportunity assessment are often pursued simultaneously.
Airbnb:
Pre-Pandemic - Airbnb bookings were cheap and growing rapidly in number across Africa. Their first listings posted around 2010. The video reports that 1/8 guests that traveled to South Africa, used Airbnb. Tourism/international business travel was booming in Africa during 2019 but covid19 hurt the industry in a major way. The experts say that when planning recovery efforts, many marketers should be placing emphasis on cleanliness. Cleanliness is key, if you have a competitive advantage in this sector, it could help tremendously because the clients/people who are traveling weigh cleanliness a far greater amount nowadays than they did Pre-pandemic. I think it can succeed in this arena because although since they IPO’d, the stock has fallen tremendously, once the pandemic subsides and life returns to normal, they will be in a great position to grow the company to new heights. I think that since they rely so much on their home providers, the company’s future may revolve around how/if they respond to the new parameters that will be set post-pandemic. Covid19 changed the world forever, and although we may be trending towards normal, it is a new-normal.
Political
Ecuador has a stable political environment especially compared to neighboring south American countries like Venezuela. They have a presidential system and are categorized as a constitutional republic.
Economic
Ecuador’s economy centers around agriculture and petroleum. They have an average/below average economy when comparing GDP statistics but they do have some areas which are optimistic.
Social
Ecuador struggles with human rights issues drastically and has many other social causes that seem to plague the country.
Technological
Ecuador is a country that seeks technological advancement but is still ahead of many of their South American counterparts.
Environmental
The equator runs through Ecuador so it is very hot, year-round. They rely on agriculture greatly a a substantial amount of the country is covered in rainforest. The citizens care about their environment because it is what helps the economy grow and employs many workers across the country.
I’m sure that it could work out, I’m not sure of any examples that would prevent an arrangement from existing or being able to be successful.
Overall, I would recommend that KIA looks to target/invest in Ecuador. The main reason that I believe KIA is the right choice over BMW is because KIA is generally a cheaper car with a lower floor. Furthermore, the geographical location makes much more sense for KIA than for BMW. Ecuador is on the northwestern coast of South America. This trek is a straight shot for the South Korean company from their headquarters. As an opportunity in general, I believe that Ecuador has some promise, It could be a good liaison for facilitation throughout central America and south America.
