Whether Proceed Global or Not?

Training course: Introduction to Promoting

Instructor: Matt Bartelsian

Project: " Whether go global or not? ”

AUA / MBA 1

Season 2008

Before deciding if to go global by selling Bjni in Atlanta we have to understand the marketing environment of Georgia, demographic, monetary, natural, personal, cultural and technological makes, test consumer behavior, evaluate competitors. Towards the end of our study, we may come up with conclusion whether Bjni has to get global, simply by entering the Georgian market of bottled waters, or perhaps Sukiasyan family members have to sell off the company.

Macro environment of Georgia

Georgia can be described as small region (69, seven-hundred sq km) with a human population of approximately a few. 1 mln. The biggest Diaspora in Georgia is Armenian (approximately almost eight. 1%), which can be very important aspect of an Armenian product in Georgia. Life span is sixty four, 8 years. In 2006 Georgia's GDP progress rate was 8. 8%, making Atlanta one of the fastest growing financial systems in Far eastern Europe. Based on the World Bank Georgia can be " The number one economic reformer in the world” because it provides in one year improved by rank 112th to eighteenth in terms of simplicity of doing business. Lately the Government authorities has decreased the number of taxes from 21 to 14 and presented the smooth income tax of 12%. They have significantly decreased the number of permits a business needs, and launched a " one-window” system that allows an entrepreneur to open a business relatively quickly. Georgia is a low-income, expanding country, however it has wealthy segments of high-income customers as well. This makes Georgia appealing for beginning a business. The political routine in the republic changed many times during the self-employed period, as well as the country endured extensive inner clashes, occasionally qualified as civil battle. The rupture between the opposition and the government that occurred last Nov and the stress arising about the upcoming parliamentary polls in May will most likely result to more chaos and political instability in the country. In 2006, trade relationships were plagued by politically enthusiastic interruptions when ever Russia enforced bans about all Georgian exports of wine, fruits, vegetables and mineral water. The unsteady scenario in the country will surely affect around the business. When it comes to government paperwork, Georgia offers improved a lot recently and nowadays we should note that the government runs a powerful system pertaining to helping overseas companies commit. In the particular case of Armenia and Georgia, we need to notice that both countries happen to be in the same international operate system (WTO).

In terms of culture, Armenia and Atlanta are very closely related. This can be very useful for Armenian investors to start any type of new business in Atlanta and the like Georgian business people. It will be very easy for internet marketers from both equally nations to adapt to the cultural values of equally societies. Therefore , from the ethnic point of view it will probably be much easy for an Armenian investor to do business in Georgia.

Georgia is known intended for the great quantity and variety of mineral oceans and is one of the leading countries in this respect. There are much more than 500 types of nutrient waters, however the most favourite are Borjomi, Sairme, Nabeglavi, Zvare, Java, Kugela ect.

However, competitors of Bjni in Georgia use very old technology. Consequently, they do not develop high quality mineral waters.

Deciding Whether to Go Global

On one hand, it truly is obvious that Georgia can be described as water nation, there are many producers of vitamin waters right now there, and some have good identity not only in Georgia, but likewise abroad. Rivals in Georgia are strong and competition seams to become difficult. This can be a main danger of going into the market of mineral waters of Atlanta. In addition , aspect of feasible political hardship may result to unwanted consequences....

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