Good Report On Comparative Market Size And Growth Forecasts For CVS's Product/Service

The comparativegrowth forecasts and market size for CVS's product and services?

CVS is a multinational pharmaceutical company that markets prescribed drugs, cosmetics, beauty products and services such as filming. With an aim of expanding its market to reach a wider client base, the company has performed an analysis of the target market. The company wishes to introduce women`s hair regrowth product in China or France. The studyaims at understanding the evolving opportunities, attractiveness of the market in question, and the threats relating to strength and weaknesses. The product for this case study is women`s hair re growth product, a clinically proven product that revitalizes hair follicles. The study population is the middle-aged women in the countries who provide a market for the product.
A detailed planning procedure used to evaluate the strengths, the weaknesses, available opportunities and threats that would arise in making an individual business venture. CVS has used the analysis to determine the viability of making an entry into other countries in an effort to expand its sales. Chinaranksone of the largest economies in the world and is a crucial consideration to industries wishing to develop. Based on a global index, China`s ranked on top five drug markets in the world while France is a smaller economy in comparison.(World Bank,2014). The country has a leading population with over a billion people and the women create a ready market for women`s hair re growth products. France has a smaller population and thus market for the product is relatively smaller. The high literacy levels in China have resulted in a large pool of skilled personnel. (World Bank, 2014). The people would thus provide cheap labor in the production of women`s hair re growth product at CVS production plants.
It is important for the company to identify the weaknesses in the market before making a venture. Many of the locals use traditional herbal products for hair treatment and are thus hesitant to receiving the new product. China hair product market is widely fragmented making it hard for CVS to define its production and marketing procedures within the country. There is competition from already established companies that produce hair and beauty products. The rates of corruption and biased government decisions have led to an unfair advantage making the market imperfect. Revenues from investment of CVS in the country would thus depend on actions taken by those in power as opposed to its strategy (The Economist 2015).Opportunities in China are diverse because of a broad economy. The economically well-endowed people are thus capable of purchasing beauty products produced by CVS. The middle aged women can allocate part of their income to buying women`s hair re growth product. With the expansion of companies within the country, exports will concurrently grow because of a wider client base.
There are threats that could deter the performance of CVS in China. Economic instability due to ever changing inflation rates in the country poses a significant threat to performance of CVS in marketing the hair product. Well established competitors would make convincing the new market a daunting challenge. High inflation rates would paralyze operations by CVS. The country has inadequate infrastructure that would make transport of the hair products to the market and communication very difficult, which may lead to failure of the company (World Bank,2014).
China has shown growth in the market of hair products. The high rate of population growth provides a larger market. France has a smaller population growth rate and the sales would not grow at the rate in China. An analysis of the political, technological, economicand environmental factors of a market will help CVS understand the forces of the target market. Political factors such as tax policies, import restrictions, environmental law, and competition regulation will influence the decision of investing in China.
CVSalso considers economic factors such as labor costs, level of consumer`s disposable income and the monetary policies imposed by the government.China has a higher GDP growth rate of 0.3% compared to that of France.(The Economist, 2015). Cconsideration on infrastructure is the availability of newest devices, with China leading in providing new technological innovations. There is a widespread use of internet across the country. This is because advanced technology is necessary in marketing the hair product. The social factors are the people’s attitude, lifestyle, and their buying habits. The women in China have a history of valuing beauty and thus provide a ready market. The strengths and opportunities in China favor entry of CVS into the market. The company then counters the identified weaknesses to increase its work effectiveness.

References:

World Bank. (2014). World development indicators 2014. Washington: World Bank Publications.
The Economist. (2015). Industry Analysis: China. Retrieved on 3rdMarch from http://www.country.eiu.com/china