MBA 521 Term
Jones International University
August 23, 2014
Market feasibility is very crucial as it is used to determine the type of business that is the most appropriate for a specific location. Best Buy Inc. Company is a company that will be suitable to operate in Dominican Republican where it has not yet penetrated. This will enable Best Buy Inc. Company to offer its marketing mix strategies to the different demographics in the country. Since the Dominican Republic is one of the largest economies; it will offer opportunities for the Best Buy Inc. Company. The demographics of the Dominican Republic are suitable for the products and services that are offered by Best Buy Inc. Company. The consumer electronics products offered by Best Buy Inc. Company will suit the population of the Dominican Republic since a great number of the youth are able to read and write.
Even though there are top line challenges that remain for the company, the retailer has already orchestrated a turn around. The Best Buy Inc. Company has few options to increase its profit margins that are why it should consider local adaptation and approaches to market segmentation in order to stay competitive in the retail market (Molot, 2014)
Part 1. Feasibility analysis
1. Project description
The project is about Best Buy Company. The company wants to extend its geographic markets in the Dominican Republic. It is therefore essential for the company to do a feasibility analysis through the Research and Development team. Such an analysis will ensure that Best Buy Company makes successful penetration into the target markets in the Dominican Republic. Increase in the market share for the company will enable it to scale the heights in the sales and increase its profitability (Molot, 2014).
11. Dominican Republic
a. Economic factors
In the Dominican Republic, there are economic factors that can hinder the market penetration of the Best Buy Company or at the same time act as an opportunity. In the Dominican Republic, there have been limited economic reforms. This is due to the limitation from the government. There is also a lot of corruption in the Dominican Republic and this is a great threat for the Dominican Republic. The chances for the significant growth for the Best Buy Company might remain stunted if such threats are not turned to opportunities for the company (Kwok, Dornbach-Bender & Lange, 2012).
b. Barriers to entry
There are barriers to entry for the Best Buy Company in the Dominican Republic. The governmental corruption may dissuade the Best Buy Company from entering the market in the country (Kwok, Dornbach-Bender & Lange, 2012).
There are several barriers to entry in our business especially when marketing our products in different countries. The main reason for this is because there are rules and regulations governing those countries. Best Buy Inc. is the project which I have choose to work with for the project. For this reason, Best Buy has been facing a lot of challenges after entering into different markets. For example, entering abroad markets has been a problem because the project contains P.O boxes from my country. It took as a long span of time to cross the border and start marketing our products. Additionally, when importing goods from different countries, they are charged with high fee and this is one of the main problems which have been affecting our project (Abbott, 2010). Transport system is also another problem which has been interfering with our project. The main reason for this is because the roads are very poor hence it becomes expensive to use plane to transport our goods. Therefore, entering in such markets has been a great problem to Best Buy Inc.
The strategic position for my project has been withered by some problems because the project has been running under loses. This is because of barriers to entry which have interfered with our markets. Market