20 Jan Library Research Project

Library Research Project

Library Research Project

MKT 4422-International Marketing Market Analysis

Professor Ghods Name

Mr. Deter Thorson, vice president of marketing research, has asked you to test and evaluate a point system he has developed for appraising foreign market opportunities. The technique has been appropriately named the Scale for Analyzing Foreign Environments (SAFE). Mr. Thorson has requested that you evaluate the model using statistics for (country name), since management is presently contemplating the possibility of entering that market. You are to submit a report indicating (1) the recommendation as indicated by the SAFE model. Be sure to include the data verifying your results. (2) A critical evaluation and assessment of the model’s worth including, (3) an analysis of the model’s limitations and (4) suggestion for improvement. Be sure to include the reasoning behind your thoughts.

SAFE is composed of five factors that are believed to be critically important determinants of a country’s market potential. Points are assigned from a pre-established rating scale according to how favorably the country’s market compares on the factor being considered.

After all five factors are evaluated, the scores are totaled to arrive at a SAFE coefficient. The SAFE coefficient is an index of the safeness or attractiveness of the foreign market. Coefficients can be compared according to standards in order to ascertain the relative attractiveness of countries one to another.

The list of critical environmental business factors which comprise the SAFE technique are:

Population growth

Literacy level

Level of economic development

General price level stability

Rate of economic growth

The five SAFE factors are listed below along with rating scale determinations for each. A discussion of the factors and the thinking that led to their choice follows the list of factor scales.

Population growth (trend during last 5 years)

rising rapidly 10