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Submitted by vshahbazyan on June 14, 2008
Category: Business
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Whether Go Global or Not?
Course: Introduction to Marketing
Instructor: Matt Bartelsian
Assignment: “Whether go global or not?”
AUA / MBA 1
Year 2008
Before deciding whether to go global by selling Bjni in Georgia we have to understand the marketing environment of Georgia, demographic, economic, natural, political, cultural and technological forces, test consumer behavior, analyze competitors. At the end of our research, we will come up with conclusion whether Bjni has to go global, by entering the Georgian market of bottled waters, or Sukiasyan family have to sell the company.
Macro environment of Georgia
Georgia is a small country (69,700 sq km) with a population of approximately 5.1 mln. The biggest Diaspora in Georgia is Armenian (approximately 8.1%), which is very important factor of an Armenian product in Georgia. Life expectancy is 64,8 years. In 2006 Georgia’s GDP growth rate was 8.8%, making Georgia one of the fastest growing economies in Eastern Europe. According to the World Bank Georgia is “The number one economic reformer in the world” because it has in one year improved from rank 112th to 18th in terms of ease of doing business. Recently the Governments has reduced the number of taxes from 21 to 14 and introduced the flat income tax of 12%. It has significantly reduced the number of licenses a business requires, and introduced a “one-window” system that allows an entrepreneur to open a business relatively quickly. Georgia is a low-income, developing country, but it has wealthy segments of high-income consumers as well. This makes Georgia attractive for starting a business.
The political regime in the republic changed several times during the independent period, and the country suffered extensive internal clashes,...
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