analysis of singapore market to mc cain corp
... Introduction McCain Foods Limited has the goals of expanding profits, market share and revenue. In realising all these goals, McCain continuously search for new market to introduce their products. Today, The Company is considering to expand its operation in Singapore. To penetrate the Singapore market, it is imperative that the company should identify the different factors in assessing foreign market potentials. The aim of this report is therefore to examine Singapore market potentitiveadvantage and its competitive climate, its government policies and the companys competitive capabilities. ... This report concludes that a great opportunity is open for McCain Foods Limited to expand in Singapore. ... Mc Cain just recently purchased Goodman Fielder International in Taipei, Taiwan and this is the marked of McCain 1st acquisition in Asia. ... Feasibility Study Singapore is a small island city in South East Asia 648 km in area (Edward and Skully, 1996). ... It has established a reputation of being the best business destination and one of the most competitive economies in the world ( Singapore 2003). ... McCain Foods International sees Singapore as a potential market to venture into. To support this consideration of expansion in Singapore, it is imperative to analyse the different factors that will aid McCain in embarking another overseas venture. The following paragraph will discuss deeper examination on the Singapore market potential, its competitive climate, its government policies and on the other hand the McCain competitive advantage. ... 1 Market Potential The first step in foreign market selection is assessing market potential (Mahoney, Trigg, Griffin & Pustay 2001, p 455). This can be done by conducting a preliminary assessment of the Singaporean market ( Mahoney et al 2001). Taking to account the population, employment, Gross Domestic Product (GDP) and Singapore currency are essential in determining the countrys attractiveness (Mahoney et al 2001) for McCain Foods International plan of expansion. ... 1 Population Singapore has a low population growth with only 4. ... 2% is niche market for McCain. ... 2 Economic Enviroment Singapore has enjoyed an impressive economic growth and achieved GDP growth of 9. ... 3 Employment Singaporean market is characterised with a highly urbanised city which indicates a high usage of consumer products and a sign that Singaporean has a strong purchasing power. ... An impressive low unemployment rate is present in Singapore economy with an average of 3. ... 4 Singapore Currency Another area of consideration is the stability of the countrys currency (Mahoney et al. ... Singapore domestic currency depreciated by 3. ... A stable currency shows a great confident of investors to a particular country and a sign of economic competitiveness which Singapore dollar has gained. The stability of Singapore currency is important for McCain profitability. A high return of investment for McCain if the Singapore dollar is increasing because importer pays at a higher value. ... 5 Consumer Behavior and Lifestyles Singapore market attractiveness to McCain Foods International can be analyse by examining Singaporean lifestyles, their buying habit, their income, status in the community ( Mahoney et al 2001) and on the other hand a particular market segment for McCain product. Singapore is becoming an increasingly affluent society. ... 7% in 2000(Yearbook of Statistic Singapore, 2001). ... McCain can easily foresee a potentail market in Singapore with the number of employed Singaporean who can afford the product. ... 7 Niche Market Singapore is an important food market for McCain Foods International, McCain products includes the frozen fries, stir vegetables, pizza, juice and beverages, entree and oven meals which has a significant market in Singapore ( McCain Food Limited 2003).