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The need for effective and rewarding investment is considered a fundamental platform upon which the report is based. The H4Y Company is contemplating to enter the Cambodian market and it is considering various facets which will favor its investment portfolio.
In order to effectively enter the market, the Company is in need of an efficient PESTEL-C analysis which analyzes the Political, Economic, Socio-cultural, Technological spheres, as well as Competition. It has been noted that the Company is capable of entering the market through an independent-based entry mode since it is well established and past performance indicates growth and development. The company is also fairly placed in terms of competition, since it is able to attract the substantial customer base. As a country, Cambodia has indeed made progress in facilitating trading grounds through such methods as providing government incentives, as well as lessening tax restrictions to foreign-based companies. It is safe to indicate that the country is experiencing a population boom, especially because of the need for replacing lives lost in the course of war.
The Cambodian government has embarked on providing avenues upon which investments could be improved. The fact that the infant mortality rate is low while the birth rate is posting significant figures is a facet worth considering, since these populations determine the demand for H4Y vitamins-related products. Further, the possibility of the future increase in the potential market is a fact which is worth noting, taking into account that the Cambodian government is open for such trade agreements which are to catapult FDI into the country. A pint worth mentioning to cement the aforesaid basis is the recent Cambodian engagement in WTO trade agreement, making it the first South-East Asian country to form the cooperation.
Potential Market Size
Birth Rate: 751 births out of 1,000 births
Infant Mortality Rate: 58 births out of 1,000 births
Out of 1,000 births the surviving population is (751-42.9) = 708 children
Total Population as at 2008 is 14,139,000 =? = (14,139,000*708)/ 1,000= 1,010,412
As indicated above with the calculations, there are about 1 million children throughout the country which constitutes a significant figure for the vitamin-related products.