The purpose of the report is to find out whether Morocco would be invested as the appropriate target country by our business--Read the World (RTW). The business scope of RTW is producing and selling the affordable high-quality educational books to the poorest people in the country. In addition, the business contains both economical and ethical requirements which are profit-making and positive social outcomes respectively. The audience of the report is the CEO of RTW.
The poor people who live around the poverty line and the local retailers in Morocco would be target market of RTW. The report will be analysed from three perspectives, which are economical, social-cultural and ...view middle of the document...
As a result, the total economical conditions turn to be moderate favourable.
In Morocco, the stable economical conditions are favourable to carry on business. The GDP per capita contains the sustained growth around 2% per annum since 2000 and the GDP growth rate at 5% in 2010, compared with the downturn global economical growth at 3% after Global Financial Crisis, Morocco maintains the stable growth due to the strong support from agriculture sector (Euromonitor International 2010). It suggests that Morocco is vulnerable because dependence on the agriculture sector, but the stable low inflation rate (nearly 2% during last five years) would reflect the stability in economy would offset the effect of vulnerability (Euromonitor International 2010). And the total FDI has reached to 4billion euro in 2010 which shows great attraction to foreign investors (Euromonitor International 2011). The increasing FDI, GDP per capita and low inflation would reflect Morocco’s growing economic performance and steadily rose in living standards (Alfaro 2003). In addition, government also made internal strategies to focus on infrastructures and improvement of business environment, such as local financial systems reform to connect international banking (Targeted News Service 2010). The more stable and stronger the economy, the bigger capacity would be provided for RTW to invest its business.
Large potential market
Another opportunity is the large potential market for customers and retailers. Morocco has nearly 20% of population below poverty and in total approximately 7 million could be treated as demand (WDI 2010). Comparing with the same regional country like Tunisia (3.8% of population below poverty) (WDI 2010), it is an advantage for Morocco as a potential market because it has stronger potentiality in the demand of cheap educational books. And also, the fact that the annual gross income per capita has kept slightly increasing at average of 1.5% since 2005 (Euromonitor International 2010) and the upward trends of disposal income per capita (average 2%) and personal consumer expenditure rate (average 3%) since 2000 would represent the customer’s purchase power is increasing in Morocco (Euromonitor International 2011). These indicators would contribute to our market demand because only when the customers have the extra money, they would consider other commodities like books, which are more than necessities. As the income increased, the expenditure on the education has also risen proportionally at 4% annually since 2007 (Euromonitor International 2010), which would suggest that customers now are more likely to put money in books.
Further, the retailer industry takes 12.8% of total GDP and employs 13% of the workforce which is big sector in Morocco Economy (Euromonitor International 2011). And the printed media market accounted for nearly 2% of total retailer industry in 2009 and this sector has a growth rate at 4.1% since 2004 (Datamonitor...