The fern’s company, страница 7

External market environment

To research our target market (South Korea) we used the method of PEST-analysis. According to it we researched political, economical, technological and socio-cultural aspects of South Korea.


Political aspect

Economical aspect

1 Political stability

1 The 11th largest economy in the world and the third largest in Asia

2 In South Korea there is no free trade (but import nowadays became more free)

2 Steady economic growth

3 Direct and indirect government control

3 Low inflation (2.5%)

Socio-cultural aspect

Technological aspect

1 Increasing population ( growth rate: 0.3% a year)

1 Developed infrustructure

2 People eat fern from ancient times

2 Increasing competition in production technologies (salty fern instead of dry)

3 Consumers now prefer to buy Siberian fern (they consider it has better colour and taste)

3 Increasing competition in packing (vacuum packing)

4 People eat more fern (healthy life-style is in fashion)

Political aspect

Nowadays South Korea is the presidential republic with 7 metropolitan cities and 9 provinces.[12] Today South Korea is a country with political stability. There are not any long crises or civil wars.

We can not say that South Korea is a country with free trade, but import nowadays became freer. We can export our product without any special license but we have to fill a declaration form.

Custom duties in this country vary from 0% till 8% according to the type of the product.[13] However, there is still high taxation on some goods, especially agricultural goods, for which a system of tariff quotas stands. But this regulation mainly connected with strategic products, for example, rice. We are going to export specific product. South Korea does not have quotas on import of fern and customs duties on this product are on the average level (not more, than 8%).

Economical aspect

Economic aspects

 GDP/PPP (2007 est): $1.201 trillion; per capita $24 800

Industries: electronics, telecommunications, automobile production, chemicals, shipbuilding, steel

Real growth rate: 5%

Imports: $356.8 billion f.o.b. (2007 est.): machinery, electronics and electronic equipment, oil, steel, transportequipment, organic chemicals, plastics

Inflation: 2.5%

Exports: $371.5 billion f.o.b. (2007 est.): semiconductors, wireless

Unemployment: 3.3%

Major trading partners: China, U.S., Japan, Hong Kong, Saudi Arabia (2004)

Agriculture: rice, root crops, barley, vegetables, fruit

Labour force: 23.99 million; agriculture 3.2%; industry 39.6%, services 57.2%