International Marketing Democratic Country

Question: Describe about the International Marketing for Democratic Country. Answer: Macro-environment Analysis Political environment The political condition of Singapore is stable and being democratic country, the business in the country in a peaceful manner. However, Recently Singapore has been facing the threat from the terrorist attack. Thus, the business operating in the country might get affected due to the attack. Foreign relations/ trade The free trade agreement that Singapore has signed with Japan, Australia, India and China has been will be beneficial for the import and export of milk. In addition to this, Singapore is also a part of the ASEAN free trade, Singapore-European Free Trade Association (ESFTA) and the Gulf Cooperation Council (GSFTA) (Sites.google.com 2016). Social and cultural environment Singapore is a place where a number of religions exist and prevails with each other. recently, the Muslim religion has started distancing itself from other communities, which might give rise to problems in the business sector. Economic environment In the year, 2016, the economic freedom score in Singapore was 87.8 point, which shows a downfall of 1.6 points. Singapore has been ranked second in the global ranking and the GDP of the country is $452.7 billion (Heritage.org 2016). Technological environment Technologically Singapore is quite strong and hence, it will help the diary industry to import the products in a proper and timely manner from the foreign countries. Agricultural environment The agricultural environment in Singapore is not strong and hence, the dairy industry is not string in Singapore. The agricultural industry contributes less than 10% to the GDP of the country and employs only 1% of the entire population of the country (Commonwealthofnations.org 2016). As a result, the dairy industry is mainly depended on import of the products rather than production in the country. Microenvironment Analysis Product market analysis The consumption of milk is growing at a steep rate in Singapore but the dairy industry is entirely dependent on the import of the products from the United States. The products are mainly distributed with the help of retailing. The products are displayed in the retail chains from where the customers can buy. Some of the companies even operate with the help on online marketing as well. Competitive analysis The competitors present in the dairy industry in Singapore are: Danz marketing Japfa food distributors pte ltd Flexible packaging pte ltd Vega foods Singapore Kuskez pte ltd Takiyah global The similarity of the competitors is that they all have to import the diary products from the foreign lands to operate the business in the country. It has also been seen that the companies who are operating in the market of Singapore are locally based; however, they have based their business on the foreign goods (Companiess.com 2016). 5. Opportunities in Singapore The milk industry in Singapore has recorded a stable growth in the country. The domestic milk industry is focused on the development of the industry by concentrating on production, factories for the processing of the milk and the storage and distribution within the country. Even though, the country has low population of 5.399 million, yet it has high per capita income of USD 355,183 (Euromonitor.com 2016). One of the famous companies that have contributed to the growth of milk industry in Singapore is F F Foods recorded a value share of 27% in the year 2015. F F Foods has a strong sale with its brands like, Nutrisoy, Daisy, Magnolia, Seasons, Pura and Farmhouse. Even though the consumers are more inclined to fat free and skimmed milk, yet the consumers of Singapore has shown different trend of consuming full fat milk. According to the consumers, full fat milks gives a richer taste to coffee and has a taste of its own that cannot be matched by other variants of milk. As Singapore is a part of the Asia Pacific region of the world, hence, the opportunities of growth of the milk industry in Singapore is ample. The Asia Pacific region held a market share of 33% in the global market (Mordorintelligence.com 2016). The number of non-alcoholic drinkers has grown in the Asia Pacific region and hence, the opportunities of the milk industry in Singapore have developed in a significant manner. The demand for infant nutrition has triggered the demand of milk among the consumers in Singapore. The ageing population is also rising in Singapore, which has triggered the consumption of pro-biotic products among the people in Singapore. Thu, it can be seen that the milk industry Singapore is going strong and there is a high chance of further growth of the industry in the country. Threats in Singapore The main problem of the milk industry in Singapore is that it heavily relies on the imports of the milk products excessively from Australia. In addition to this, the import of raw milks is not allowed in the country of Singapore (Dairy Australia 2013). Thus the main threats to the milk industry of Singapore is the threats of high pricing and the threats of diseases that is coming in the country due to the import of the milk. As they are importing the milk from Australia, hence, they have to pay the price as per the Australian currency. There has been a bit of relief due to the free trade agreement and hence, some of the political constraints due to the import and export of milk has reduced a bit. On the other hand, the import of raw milk has given rise to infections due to the foot and mouth diseases among the animals of other countries (Oie.int 2016). Thus, the main threats to the milk industry of Singapore will be faced from biological point of view and the business point of view. References Commonwealthofnations.org,. 2016.Find Agriculture expertise in Singapore.Commonwealthofnations.org. Retrieved 7 October 2016, from https://www.commonwealthofnations.org/sectors-singapore/business/agriculture/ Companiess.com, 2016.List of Global Dairy Companies in Singapore. [online] Companiess.com. Available at: https://www.companiess.com/singapore_dairy_product.html [Accessed 13 Oct. 2016]. Dairy Australia, 2013.Dairy 2013 Situation and Outlook. 1st ed. [ebook] Available at: https://www.dairyaustralia.com.au/~/media/documents/stats%20and%20markets/s%20and%20o/may%202013/dairy%20situation%20and%20outlook%20may%202013%20-%20full%20report.pdf [Accessed 13 Oct. 2016]. Euromonitor.com, 2016.Dairy in Singapore. [online] Euromonitor.com. Available at: https://www.euromonitor.com/dairy-in-singapore/report [Accessed 13 Oct. 2016]. Heritage.org,. 2016.Singapore Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption.Heritage.org. Retrieved 7 October 2016, from https://www.heritage.org/index/country/singapore Mordorintelligence.com, 2016.Singapore's UHT Milk Industry Growth | Opportunities and Upcoming Projects |. [online] Mordorintelligence.com. Available at: https://www.mordorintelligence.com/industry-reports/market-entry-uht-milk-industry-in-singapore [Accessed 13 Oct. 2016]. Oie.int, 2016.List of FMD free Members: OIE - World Organisation for Animal Health. [online] Oie.int. Available at: https://www.oie.int/en/animal-health-in-the-world/official-disease-status/fmd/list-of-fmd-free-members/ [Accessed 13 Oct. 2016]. Sites.google.com,. 2016.Political and Legal Environment - Onward Singapore.Sites.google.com. Retrieved 7 October 2016, from https://sites.google.com/site/onwardsingapore/political-and-legal