Economic environment Essay

The coarse has been experiencing quick economic growth due to the increasing oil prices. Oil and torpedo account for to a greater extent than 50% of its GDP, which is 70% of government revenues and 85% of its merchandise earnings. Qatars GDP is $ 85. 35 billion, GDP growth rate is 11. 2% with and inflation rate of 15. 2%. Realizing this unhealthy dependency toward oil and hit man, about of the economic policies of Qatar atomic number 18 now focused on dealing with Qatars non-associated natural gas reserves and developing unknown and private coronations in non-energy heavenss.The Qatari Government has been actively encouraging foreign investments in non-oil sectors the like power, telecommunication and real dry land. The plain is significantly influenced by the Free sight Agreement which has made investments in non-oil sectors more attractive, including the tourism sector, real estate and trade sector. It is predicted that the flow of internationalistic investment in Qa tar will sum up due to this using program by the Qatari government. Nevertheless, the amount of international investment in Qatar will remain on its oil and gas sector. Businesses from inside the country also invest considerably on EU businesses.Furthermore, the government is mellowly committed to privatization of most of its state-owned businesses, like telecommunications, power and wet sector. A more detailed look on its trade activities revealed that the countrys largest slice of exports are large machineries like aircraft, power author plant, mechanical appliances, medical equipment, electrical machineries, etc. Furthermore, the countrys investment and monetary environment is reported to be a source of concerns. This is aline because high oil prices and strong economic growth has been accelerating the inflation train into a rate which is hard to tolerate.This has significant effect toward the real-estate and assembly line markets. The stock market has experienced a correc tion in 2006, but reports revealed that Qatar has a lot recovered from it. On the another(prenominal) hand, the real-estate prices have been rising to an alarming rate. These increases are partly fueled by high real estate financings. It should be noted however, that the Qatari government has been limiting the overall exposure to this sector, and thus, a real estate sector shock is unlikely in the foreseeable future.Only prolonged low oil prices will dampen the development of the banking sector as well as other developing sectors in Qatar, and such occurrences are considered very difficult to become a reality. 1. 1. 1. pagan Environment The quite a little of Qatar are exceedingly educated people with an overall high sense of business. 90% of the population is literate and school living expectancy is 13 years, which is a high number in all region of the world. People speak Arabic, but English are unremarkably used as a second language. The people of Qatar consist of prefera bly diverse origins. 40% are Arabic, 18% are Indians, another 18% are Pakistani, 10% are Iranian, etc.Life expectancy is high and infant mortality rate a very low with honest age structure for business activities. 1. 2. Competitive Assessment Considering the highly certain economy and the abundant economic resources, Qatar should be considered as a highly competitive environment. This is true considering the economic appeal that the country has toward western countries, including the European Union. Qatar has maintained a strong and positive relationship to the EU countries, which would of course bring more attention of EU businesses, to enter the Qatar markets.On the other hand, the Qataris themselves should be accounted as a possible source of competition for sell and electronic products, especially the latter. As mentioned, Qatars most active sector recently is the electronic and machinery sector. Even though the machinery sector is not inwardly the realm of competition wit h sell products, but the electronic sector in Qatar means significant competition from local players, especially when the sector is highly developed already. The positive aspect of expanding to Qatar is cosmos one of the prototypal foreign presences within the particular sector.Despite the competitive nature of the business environment, being one of the first players within the industry would significantly help the film of Brookstone. 1. 3. Potential Target Market Assessment Almost 80% of the countrys population consist of people aged 15-64, which is an active consumer. Nevertheless, search indicated that the most likely consumers of Brookstone are business society, followed by the average sell consumers. This is true considering Brookstones specialty in delivering customers with complete set retail choices, even the ones that are commonly hard to find in the general market.I believe that taking account of the rapidly expanding economy in Qatar, such offerings from Brookstone will be welcomed warmly by the society. 2. Market introduction Strategy In theory, it is safer for companies to follow the general steps of entering a foreign market. Those steps are direct exporting first, followed by colligation ventures, establishing a sales representative and then establishing a full-fledged adjunct within the region. Nevertheless, considering the retail nature of the business, it is highly crucial for Brookstone to have the first appearance in the market as trustworthy provider of peoples needs.Therefore, a more direct approach by establishing stores within Qatar markets is a more suitable method for Brookstone. Nevertheless, several adjustments would be essential considering that the company is entering a country with significantly different cultures and erogenous political views. It is important for Brookstone marketing managers to enter the lives of its customers and understand their perspectives in relation to retail matters. That understanding could b e used to create a more effective and market-reaching in-store marketing programs or out-of-store promotional programs.