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steady Population growth, Decreased population growth by -0.051%

Unemployment rate is high

Socioeconomic classification is based on occupation, income, education, wealth and other variables

Continued need for upliftment of the poor, Gap between rich and poor

Technological

Significant in the recent years-International Technology Breakthroughs

Modern communication technologies

Vast quantities of information and databases enabling cost reduction for research

IT trends and the speed of change

Communication infrastructure, Costs of new technology

Threat of globalisation and ‘disrespect’ for boundaries

Legal

Strict rules and regulations are followed, tight legal rules

Local license/planning permission according the UK law is required

International agreements on human rights or environmental policy

The Sales of Goods Act, The Consumer Protection (Distance Selling) Regulations are some of the Consumer laws in UK protecting customer rights

The UK consumer protection is directly handled by The Office of Fair Trading.

The Consumer Protection Act, No. 68 of 2008 was signed into law on 24 April 2009. The aim of the Act is to make markets work better for consumers by ensuring that consumers: Are able to make well informed buying decisions;

Are able to access a wide range of products and services based on honest and fair marketing and selling practices;

Have access to efficient and effective redress;

Are educated about their rights and responsibilities

Environmental

Global Climate change issues

Local waste issues

Lack of water, Pollution, overfishing, Destruction of natural habitats

Source: CIA World Factbook, 2010, hmrc.gov.uk, dti.gov.za

Competitive Intelligence

The Competitive Intelligence of the two chosen foreign markets can be determined using a SWOT (Strength, Weakness, Opportunity and Threats) analysis which can help us to determine the factors associated with the foreign markets for decision making. These tables describe us the common factors that we need to know when we try to export our products into these markets. A careful study should be made on the currency rates and also on the competitor’s actions regularly to be successful in such markets.

United Kingdom

STRENGTH

WEAKNESS

OPPURTUNITY

THREATS

Has the economic resources to survive (skilled labour for example)

Good industrial relations, Political Stability

Good education system compared to most countries

English as first language and is the world language therefore improves business.

Stable and growing economy

Profitable businesses

Improvement of management

Low unemployment

Willingness to try new products inspite of high brand loyalty

Products can be made available in many outlets, extensive choice, wide price ranges

Not many restrictions on packaging or marketing/cost

Poor transport system hindering trade

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