Capuka Honey Industry Analysis

1.0 Introduction
This report examines three essential elements of an importing country, including socio-economic, political background and business environment. And this report only analyses and compares two target countries: Japan and Saudi Arabia. Based on these demonstrations, a weighted index of market potential is presented, which provides an indication for Capuka Honey company to select an optimal overseas market for its Manuka honey products.

2.0 Economic Environment 2.1. economic endowment
Table 1: Country fact sheet Japan Saudi Arabia
Land area 377,899 sq km 2,150,000 sq km
GDP (purchasing power parity) $ 5,262,000 million $ 1,757,728 million
GDP per head (purchasing power parity) $ 41,188 $ 56,469 population 127.7 million 31.1

Additionally, the reason why Japan scores higher is that Japan has several advantages while Saudi Arabia has not, such as a larger population, an easier transportation, a greater GDP, a free market economy, a more stable society, a larger share of imports for honey products, and a lower trade barrier.

Table 3: the weighted index of market potential for Japan and Saudi Arabia

Variable
Weighting Japan Saudi Arabia Score Adjusted Score
Score Adjusted Score
Economic endowment 15% 9 1.35 5 0.75
Economic stability 20% 6 1.20 8 1.60
Democratic level (economic freedom) 10% 9 0.90 4 0.40
Political stability 20% 6 1.20 5 1.00
Potential market 25% 8 2.00 6 1.50
Trade barriers (taxation & tariffs) 10% 8 0.80 5 0.50

Total
100%
46
7.45
33
5.75

6.0 Conclusion
This report has outlined the economic, political and business environments in Japan and Saudi Arabia and evaluated their market potential for exporting Australian Manuka honey products. Based on this analysis and the weighted indexes, I recommend Japan as a more potential foreign market because Japan has a larger size and better features of the economy and a sounder and more stable social system for