Global Market Opportunity Assessment (GMOA) Report (Research Paper Sample)

Global Strategy and Sustainability Assessment 1: Global Market Opportunity Assessment (GMOA) Report Introduction InTunes is a London-based manufacturer of high-quality musical instruments which stands at the forefront of conducting an international expansion in the dynamic and evolving world of music. The decision to globalise is not just a step towards growth but a journey into a landscape brimming with cultural diversity and rich musical traditions. In this pursuit, Germany emerges as the most promising destination for expansion as this market is renowned for its deep-rooted music culture and a flourishing market for musical instruments hence Germany presents an unparalleled opportunity for InTunes to showcase their exquisite pianos, violins and guitars. The essence of this expansion lies not only in selecting an ideal market but also in forging strategic partnerships that are fundamental to navigating the complexities of international dynamics of the business. In this regard, aligning with Thomann stands out as a strategic move as it is one of the largest retailer of musical instruments in the Europe which has been operating in the market since 1954 (Thomann, 2023). Analysis through GMOA Framework Suitability of Products for Germany It has been stated by Howard (2022) that Germany stands out as an ideal market for InTunes' products due to its rich musical heritage and contemporary music scene. Historically, Germany has been a central hub for Western classical music which has been home to legendary composers. This legacy fosters a deep appreciation for classical instruments especially pianos and violins among German consumers. Beyond its classical roots, the modern music landscape of Germany is equally vibrant which is highlighted by major events like the Berlin Music Festival. Furthermore, the emphasis on music education in Germany is significant due to a plethora of music schools and conservatories across the country hence there is a steady demand for high-quality musical instruments, both for instructional and performance purposes. These institutions often seek instruments that combine durability with exceptional sound quality which are the characteristics that are emblematic of the product range of InTunes (Howard, 2022). The German market expectation also centers significantly on quality and durability with consumers showing a strong preference for products that promise long-term value. This inclination towards high-quality products over cheaper alternatives sets a clear precedent for InTunes. The focus of the brand on superior craftsmanship and attention to detail is likely to resonate well with German consumers. This alignment with market expectations offers InTunes an opportunity to establish a strong brand image in the German market and provide a distinct competitive advantage in the German market however in order to penetrate the market, InTunes will need to navigate the comprehensive regulatory landscape of German market which requires product safety and environmental concerns. Although these concerns are already addressed in the products of InTunes and therefore company can receive a favorable reception for their products (Wheelen et al., 2018). The educational policy of Germany also underlines the role of music in cultural education which is crucial for individual development and societal coexistence therefore collaboration with Thomann will provide a robust starting point for distribution (Nimczik, 2018). Also there are few competitors in the market with low barriers to the entry which will allow the company to capture a chunk of the market however refining marketing campaigns to resonate with German cultural nuances and aligning with local tastes would be important to capture the attention of the consumers. Country Market Size The market size of Germany for musical instruments is the largest in terms of region with the demand reaching $1.5 billion in 2022 hence offering a significant opportunity for InTunes (EuroMonitor International, 2023). The large market not only provides a broad customer base but also suggests a healthy industry with room for growth and new entrants. The scale of the market also implies diverse consumer needs and preferences, potentially allowing InTunes to target various segments within the market, from high-end professional instruments to more affordable options for beginners. The German musical instrument market is notably influenced by foreign suppliers, as evidenced by imports constituting a significant 59.3% of the total market size in 2022. This high level of import penetration suggests an openness to foreign brands and products, providing an encouraging environment for InTunes to enter the market. The dominance of foreign suppliers also indicates the potential for InTunes to capture a share of this import market particularly with marketing campaigns allowing them to differentiate their products through quality and craftsmanship. The economy of Germany is also stable providing favorable business environment which are conducive to trade and investment (EuroMonitor International, 2023). The population of Germany is characterised by a significant proportion of middle to high-income earners which presents a promising customer base for InTunes. With a sizeable and educated middle class, there is a likely affinity for the value represented by high-quality musical instruments. This is evident by the demand dynamics in the German musical instrument market which is largely driven by household spending which accounted for 65% of the total demand in 2022 which indicates that this is a consumer-driven market with individuals and families investing in musical instruments for personal or educational use (EuroMonitor International, 2023). This trend aligns well with the product offerings which can cater to both amateur and professional musicians as well as music students. The robust German economy is marked by its high GDP per capita which indicates a populace with the purchasing power necessary for luxury goods like musical instruments. These scenarios indicates that the offerings of the company would find a receptive audience among young professionals, affluent retirees and established musicians. Market Potential The increase in the number of companies within the musical instrument sector in Germany in 2022 is a clear indicator of a growing and dynamic market which has experienced a compound annual growth rate (CAGR) of 10.03% in sales of musical instruments since 2017 (6WResearch, 2022). This expansion signifies not only a healthy level of business activity but also reflects a market that is receptive to new entrants and innovation. This suggests an opportunity for the company to enter a market that is not only established but also evolving while offering room for a new player to establish a presence. The substantial contribution of Germany to Western European musical instrument market accounts for 35.5% of the production value of the region which also underlines its economic influence in this sector. The rise in the export share of the industry has reached 57.4% of total production output in 2022 which demonstrates the high international demand for German-made musical instruments (Nathaus, 2016). This global appeal can be attributed to the perceived quality and craftsmanship of German products therefore this trend provides an encouraging sign for InTunes that entering the German market could serve as a gateway to broader international markets. Establishing a presence in Germany could therefore not only tap into the local market demand but also leverage the strong export capabilities of Germany to reach a wider global audience. The tuition free education related to music also attracts significant number of international students which accounts for 46 percent of total students coming from abroad which reflects the global appeal of music education in Germany (Reucher, 2019). Hence for InTunes, a successful entry into the German market could establish the brand as a significant player in one of the most influential markets in Europe. The economic influence of Germany in the musical instrument sector also suggests that trends and consumer preferences in this market could have wider implications and influence on neighboring markets. Foreign Partner Selection In the critical phase of selecting a foreign partner, InTunes' strategic alignment with Thomann emerges as a prudent decision where Thomann is one of the largest retailer of musical ins...