Welcome
The Abstract
Thesis Introduction
The Aim
Background to the Research Topics
The Research Topics
The Targeted Audience
Disposition
Research Approach
The Thesis in Context
Export Guide Construction
Questionnaire Construction
Information Gathering
The Export Guide
Introduction to the Export Guide
Export Guide Overview
Export Readiness
Trade Condition
Foreign Market Analysis
Questionnaire
Research Results
Export Readiness
Trade Condition
Foreign Market Analysis
Discussion
Export Readiness
Trade Condition
Foreign Market Analysis 1
Foreign Market Analysis 2
Conclusion
Export Readiness
Trade Condition
Foreign Market Analysis
The Next Step
Supplements
Introduction to Sunfoods and Konnyaku-Chips
Site Map
The Complete Interview Answers
Glossary
Sources
Foreign Market Analysis 1
Political, Economic and Statistical Data
If a corporation want more detailed knowledge about a target market they have in mind than market research may help the company understand the market's needs and opportunities.(A step-by-step guide to exporting 2003-02-18, page 16) The most important political factor for foreign businesses is considered to be the stability of government policies and it has been argued it is possible for a company to operate on any market under any type of government as long as there is some long-run predictability and stability. (Cateora and Graham 1999, page 145) (Cateora and Graham 1999, page 144-145) It is the contention of OECD that Sweden belongs to the countries with the lowest political risk in the world.(www.ntc.no/cgi-bin/wbch.exe?page_id=13738&d_id=9634 2003-03-10) This may indicate that Sweden is among the politically safest countries in the world to export to. However, the population of Sweden is said to be substantially smaller that of Japan.(www.your-nation.com 2003-03-12) This may show that the market for Konnyaku-Chips is considerably smaller in Sweden than in Japan. Further, per-capita income is generally considered a good indicator of the market's ability to pay.(A step-by-step guide to exporting 2003-02-18, page 25) It is said that the per capita income in Sweden was $25,400 in 2002, which can be compared to the Japanese per capita income for the same year, which was $28,000 according to CIA.(www.cia.gov.publications/factbook/geos/sw.html#.Intro) It may thus be noted that the Swedish per-capita income is significantly lower than the Japanese per-capita income and the Swedish income level only seem to equal approximately 90% of the Japanese income level. This may suggest that the Swedish customers may require lower product prices than the Japanese customers in order to afford the Konnyaku-Chips. Nevertheless, the Swedish market may still be profitable. Diet related health problems, such as overweight, are said to be increasing in Sweden.(www.fni.se/shop/material_pdf/fetma_inlaga.pdf 2003-02-23) Concurrently, the sales of dietary supplements and other health products are claimed to be increasing in Sweden. .(http://www2.unt.se/printarticle/0,1239,MC=1-AV_ID=250087-SD_ID=25,00.html 2003-05-05) The Swedish health food market may thus be said to come about as a small, but growing and stable market.
Legal Protection
It is maintained that one imperative legal aspect to consider is intellectual right protecting.(www.unzco.com/basicguide/c9.html 2003-02-20) It is said to be no such thing as an international patent, trademark, or copyright.(www.unzco.com/basicguide/c9.html, 2003-02-21)(A step-by-step guide to exporting 2003-02-18, page 46) This may imply that it may be advisable for Sunfoods to protect Konnyaku-Chips legally in Sweden before entering the Swedish market. It is said that to protect products in Sweden legally the 'Swedish Patent and Registration Office' ('Patent och Registreringsverket') need to be contacted, as the office is responsible for registering trademarks, and protecting inventions and designs in Sweden. The Office argue that to apply for legal protection in Sweden it is necessary to have an agent domiciled in Sweden and the agent need to have a written power of attorney from the company to be able to represent the company. This can mean that it will be necessary for Sunfoods to engage the services of an attorney or other legal representative in Sweden in order to protect Konnyaku-Chips legally in Sweden. Information regarding application procedures and application forms for legal protection can be found on the Swedish Patent and Registration Office's site. However, application forms are said to be provided in Swedish only.(www.prv.se/eng/guiden/varuguiden/utlanning.html)
It may be claimed that Konnyaku-Chips should be legally protected in Sweden before entering the country. The process of applying for legal protection in Sweden appears to require that a company representative in Sweden be found. However the legal protection aspects does not appear to give reasons to discard the export venture.
Cultural Aspects
Cultural understanding of the host market may facilitate decisions regarding how to best approach the market and cultural factors are considered essential in international marketing because it is believed that the success of operations abroad depend on an awareness of differences in cultures.(A step-by-step guide to exporting page 17, 2003-02-18) (Cateora and Graham 1999, page 98) The Swedish business culture is thought to differ greatly from the international norm and it is said to be characterized by very small power distance where personal status is of relatively little importance.(www.sverigeturism.se/smorgasbord/smorgasbord/industry/business/culture.html 2003-04-03) This might mean that Sunfoods can expect the Swedish business culture to be less formal with a short distance between the managers and other employees. On the other hand, a direct approach and punctuality are said to be seen as signs of efficiency in Sweden and it is claimed that Swedish business colleagues seldom talk much about themselves or their hobbies when working.(www.sverigeturism.se/smorgasbord/smorgasbord/industry/business/culture.html 2003-04-03) Swedish business people may thereby head straight into the core of the business negotiations without much socializing and they might thus be perceived as impersonal and blunt. Heated debates are claimed to be quite uncommon and compromising is said to be strongly favored.(www.sverigeturism.se/smorgasbord/smorgasbord/industry/business/culture.html 2003-04-03) This may add to the impression that Swedish business executives are dull and reserved, but on the other hand, the ability to compromise and their conflict avoidance may be appreciated by many. Swedish managers are said to be rather willing to take risks, while the opposite is believed to be true for Japanese managers.(www.sverigeturism.se/smorgasbord/smorgasbord/industry/business/culture.html 2003-04-03) This may be a potential base for conflicts and it may be important for Sunfoods to recognize this difference in culture prior to preceding with business negotiations in Sweden.