Pest-Walmart in South Africa
Economic Environment:
“Since1999, South Africa's economy has been growing steadily. In addition, consumer inflation has been decreasing. While the GDP rate has been rising, unemployment rate and US exchange rate have had a downward trend since 2001. The country's financial and industrial infrastructure is well developed and has outstanding growth potential [Anon 2006(10)]. However, South Africa has the problem of enormous socio-economic inequalities, which were encouraged by the apartheid regime. S. Africa has been described as a powerhouse of Africa. In addition, its major strengths against competitors include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, and strong growth potential in the tourism [Anon 2006(4)].”
The purpose of this section is to analyze the economic environment of South Africa, and determine whether or not the targeted market is an attractive one for the company to enter. Determining the level of attractiveness will primarily focus on an analysis of the economic factors that will affect or assist the company before it enters the market, and it will also verify whether or not entering this particular market will have a positive overall outcome for the company, both in expanding its global image and generating desired levels of profits.
While conducting research on the general economic environment that is currently taking place in South Africa, a major issue that should be considered is the high property levels and values. Foreigners have taken an extra interest in property in South Africa, which has ultimately led the country in enjoying increased levels of tourism, primarily as a result of both property levels and the upcoming two thousand ten (2010) Olympic Games.
Taking a closer look at the economic factors of the country, those that proved to be most beneficial and important for the company to focus on before beginning this particular venture were levels of capital
“Since1999, South Africa's economy has been growing steadily. In addition, consumer inflation has been decreasing. While the GDP rate has been rising, unemployment rate and US exchange rate have had a downward trend since 2001. The country's financial and industrial infrastructure is well developed and has outstanding growth potential [Anon 2006(10)]. However, South Africa has the problem of enormous socio-economic inequalities, which were encouraged by the apartheid regime. S. Africa has been described as a powerhouse of Africa. In addition, its major strengths against competitors include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, and strong growth potential in the tourism [Anon 2006(4)].”
The purpose of this section is to analyze the economic environment of South Africa, and determine whether or not the targeted market is an attractive one for the company to enter. Determining the level of attractiveness will primarily focus on an analysis of the economic factors that will affect or assist the company before it enters the market, and it will also verify whether or not entering this particular market will have a positive overall outcome for the company, both in expanding its global image and generating desired levels of profits.
While conducting research on the general economic environment that is currently taking place in South Africa, a major issue that should be considered is the high property levels and values. Foreigners have taken an extra interest in property in South Africa, which has ultimately led the country in enjoying increased levels of tourism, primarily as a result of both property levels and the upcoming two thousand ten (2010) Olympic Games.
Taking a closer look at the economic factors of the country, those that proved to be most beneficial and important for the company to focus on before beginning this particular venture were levels of capital