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sector, its investment policy, and the trade sector. Furthermore, data has
to be collected about economic performance. For example, data such as

GNP, per capita income levels, growth rates, labour costs and capital
availability, employment levels, population, education levels, public health
and income distributions all help determine the attractiveness of the

market, obstacles to entry, the marketing of goods and services, and the
long-term profit potential. Another important factor in the marketing

environment is government regulations, especially in relation to product
and safety standards, barriers to entry, and control over managerial and
marketing autonomy. Does the host country government, for example,

implement industrial policies that benefit local companies at the expense
of foreign companies?

5.4.2. Competition

Information about the competition is next in importance. This will include

the different strategies or tactics that shape a competitor’s behaviour,
whether it possesses special strengths that are culture specific and not

apparent to an outside firm. For example, close family ties may exist
between a competitor’s top management and influential individuals in the
government and political arena. The international company must

investigate and assess its competitors in terms of their objectives, their
capabilities and their reactions to competition. This information will assist

the international company to decide on its strategic plan, what modes of
entry to take, and how vulnerable it will be, as well as in preparing a plan
to respond to a competitor’s reaction.

5.4.3. The product

Information centred on the product is third on the list. Information from
marketing research will enable the firm to assess both its product and that
of its competitors. The information can also be used to put the product in

the context of the host country’s culture, giving a better understanding of
customer needs, product demand and purchasing behaviour as well as

the unique characteristics of consumers that will help the company to carry
out its segmentation strategy. A segmentation strategy will require
information about consumers’ age, sex, size, income levels, growth rates