AMIRUL FARHAN BIN ISMADINORHASHIMAH BINTI MOHD ISMAIL

NUR AFIQAH BINTI AHMADINUR AZILA BINTI RUSLIN

INTERNATIONAL MARKETING

ANALYSIS OF ENTRIES STRATEGIES &FREE TRADE ZONE

one of the most important parts of any start-up strategy. A good market analysis will enable you to lure investors, sidestep

pitfalls and most important, attract customers.

MARKET ANALYSIS

Market potential is an estimate of the amount of money your clients can expect to make from the product or service they plan to market. Their estimate will only be as good as the information they use and the assumptions they make.

MARKET POTENTIAL

You figure out a customer profile (who you want to target with your marketing).

After that, you combine that with the geographic size you want to target (how many of those people are in that area).

To get a more specific marketing potential, you need to know also how many competitors you have and their strength in the market area.

You can then estimate how much of their business you'll be able to take from them (we recommend being conservative on your estimates), and that will be the market potential of your business.

Example:

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation.

For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.

ECONOMIC GROWTH

Economic growth is usually associated with technological changes.

An example is the large growth in the U.S. economy during the introduction of the Internet and the technology that it brought to U.S. industry as a whole.

The growth of an economy is thought of not only as an increase in productive capacity but also as an improvement in the quality of life to the people of that economy.

Example

When company do not have a certain resource they need, they can either replace it with another resource, or trade with another country to get the resource.

Usually in order to maintain the production of products, is essential to understand of the uncertainties surrounding resources.

Company need to estimates for both conventional and renewable energy resources can contribute to more effective policy decision making in the long term

AVAILIBILITY OF NATURAL RESOURCES

Availability of Labour - the availability of worker having the skills

necessary to handle satisfactorily the requisite workplace. All costs are lower with better availability , higher with lower availability.

Eg: Labour in china and India

Political Risk - a type of risk faced by investors, corporations and

government. That can be understood and managed with reasoned foresight and investment.

Eg: Palestine and Syria

Market access & Trade barrier - means the condition, tariff and non-tariff, set by countries for the entry of specific goods into their market.

- government or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.

Eg: Quotas, embargo and licenses

A Free Zone is an area in any part on Malaysia declared by the Minister of Finance under the provision of Section 3(1) of the Free Zone Act 1990 to be a Free Commercial Zone or Free Industrial Zone

It is mainly designated to promote trade and specially established for manufacturing companies that produce or assemble products mainly for export

FREE ZONE AREA

The activities and industries there is a subject to minimal customs formalities as it is deemed under Section 2 (1A) of the Customs act 1967 to be a place outside the Principal Custom Area except in respect of Prohibition of Import and Exports under Section 31 of Custom Act 1967

Can be divided into 2 categories- Free Commercial Zone- Free Industrial Zone

FCZ is regarded as a place outside the Principal Customs Area (PCA). The zones are located at ports and airports as well as outside ports and airports. The free commercial zones which are located outside ports/airports are those located at Stulang Laut, Johor Bahru, Bukit Kayu Hitam, Kedah, Pengkalan Kubor and Rantau Panjang, Kelantan. Commercial activities such as trading (excluding retail trade), break-bulking, grading, relabelling, repacking and other value-added activities are allowed to be carried out in FCZ.

FREE COMMERCIAL ZONE

Free Commercial Zones (FCZs) are also governed under the Free Zones Act 1990 and Free Zones Regulations 1991 as indicated earlier. The rationale for the setting up of the FCZ was the promotion of commercial and trading activities in Malaysia, including entrepot trade, in line with the promotion of the services sector.

FCZs are normally located near the country’s ports due to the nature of the activities, which can include bulk breaking, repackaging of products which are either imported or sourced from companies in the FIZs or Licensed Manufacturing Warehouse (LMWs) or from the PCA.

Just like in the FIZs, companies in the FCZs are exempted from payment of duties, sales tax and service tax for all imports, which will be subsequently re-exported together with other products or as components of another product being repackaged in the FCZs.

FIZ is a place where most of the manufacturing activities carried out are for export purpose. It is a facility meant for export-orientated companies. Besides that,

FIZ can also carry out other activities such as evaluation, testing of goods, research, designing etc.

FREE INDUSTRIAL ZONE

Free trade zones also offer operational benefits such as indefinite storage opportunities, increased security and insurance on goods, and top-of-the-line operating facilities.

Eliminating duties and quota charges on merchandise exported

Deferring Customs duties and federal excise tax on imports Delaying duties and taxes until merchandise is transferred

into US Customs territory Storing goods indefinitely without paying duties Not paying duties on waste  

BENEFITS

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