Ethiopia an Emerging Market Opportunity Harvard Case Solution & Analysis

Ethiopia an Emerging Market Opportunity Case Solution 

Introduction:

The purpose of this case study is to analyze and study the market situation and economic environment of Ethiopia in order to realize the opportunities and benefits for the foreign investors and companies like Med Co, Shoe Co and Care Co. The managements of these three organizations are interested to penetrate the markets and respective industries of the country however; they are hesitant to do so without understanding all the dynamics and influence points of the industry and the markets of the country as it requires significant resources to do so and any miscalculation on behalf of the management and experts of these organizations will likely cost the business negatively in terms of losses.

 Issues:

The most critical issue for the management of the Med Co, Shoe Co and Care Co are the complete and comprehensive research of the opportunities and benefits of business in the Ethiopian markets while also keeping in mind the issues that are currently present in the country.

Although the main priority issue for the management of these organizations is the accurate market study of the country however, there are several issues that still persist with in the dynamics and environment of the country and they are likely going to influence the business and its operations when the business enters and starts functioning in the markets of the country.

Some of these issues are the supporting state and public infrastructure, skilled force of the country, segregated distribution channels, bribery and corruption and many others that can affect or harm the business negatively.

Analysis:

The analysis of the business opportunity in the country for the all three organizations will include an internal study of the corporate environment of the country along with the qualitative and quantitative research for the advantages and benefits that these organizations might exploit by entering and penetrating the Ethiopian markets. The analysis as per these illustrated dynamics of the country will provide a true and fair picture for the management of these organizations to decide whether the market of the country is attractive enough to launch and do business by diverting significant monetary resources of the company.

Economic Analysis:

The economic analysis of the country is very motivating and supportive for the multinational organizations and foreign investor to enter and launch themselves in the markets of the country. The economic analysis of the corporate environment of the country will consist of several influence factors that impact the business economics of the country and understanding them deeply is essential for the management of the organizations in order to save the business from unexpected losses or otherwise long term efficiencies in the markets. (bank, 2013)

The elected government of the country has taken several steps that have improved the economics and overall condition of the country. This can be identified by the fact that the World Bank has quoted the country among the top improving nations of the region as per the improving GDP of the country. It is linked to several steps that the government of the country has taken in order to secularize and improve the economic activities of the country.

The GDP of the country has increased to over $ 45 billion over the years and this has mainly to do with the reforms of the government in the agricultural and service providing sector however; the manufacturing sector of the country still lags behind and the government is keen to also improve this sector by inviting and attracting direct foreign investments.(bank, 2013).............

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