The first reason for the Media Markt to Panama is the most obvious one, growth. This means that
the Media Markt can expend their profit when going to Panama. But sales isn’t the only kind of
growth the Media Markt can go through, the brand awareness of the Media Markt also goes up.
People will get to know the Media Markt because of its international presence. What I mean by
international presence is that for example the Media Markt is known all over Europe. But if you for
example ask an American about the Media Markt they won’t know what it is. So when going to
another continent you will increase the brand awareness within that particular continent and with
the experience you gain when moving to in this
case south-America you can use that knowledge to
for example expand to the US in a later point in
time.
The Media Markt can also go international because
Panama is an emerging market. Panama is an
emerging market because the people earned more
money than in the year 2000. according to the
Worldbank the Panamanian people earned about
$13.000 more in 15 years. This means that the
purchasing power of the Panamanian people went up. When the purchasing power of people rises
they can afford to buy more luxury products like a new TV or a new computer, and these can be
bought by the Media Markt.
The third reason that the Media Markt could go to Panama is cost reduction. The costs in Panama
will be lower than they are in Europe simply because of the economy in Panama. As said earlier the
Panamanian people earn about $20.000 a year, compared with the $48.400 in the Netherlands.
( http://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD?end=2015&locations=PA-NL&start=2000
source) because the people in Panama earn less money than we do here in The Netherlands the costs
of the personnel will be less.
These are all good reasons for the Media Markt to go to Panama, but they might encounter some
problems too. One of these problems can be the recruitment of the right staff. This can become a
problem because the Panamanian are less educated than we are over here in The Netherlands.
Therefor the Media Markt has to train their new employees in Panama by current employees that
work in The Netherlands, they need to do this to make sure that the right advise and the right
products are given and sold to the customers. The Dutch employees can also train in the norms and
values of the Media Markt, what I mean with this is how the Media Markt want’s their employees to
act when working.
The final thing that the Media Markt needs to do the decide to go to Panama is make a PEST analysis,
when doing this they can really decide of Panama is the right country to go to and if it’s worth the
risk of expanding their business to Panama.
Name, Class, Student no, date , BTEC Nationals in Business, Unit 1 Business Resources 2015-2016
1
the Media Markt can expend their profit when going to Panama. But sales isn’t the only kind of
growth the Media Markt can go through, the brand awareness of the Media Markt also goes up.
People will get to know the Media Markt because of its international presence. What I mean by
international presence is that for example the Media Markt is known all over Europe. But if you for
example ask an American about the Media Markt they won’t know what it is. So when going to
another continent you will increase the brand awareness within that particular continent and with
the experience you gain when moving to in this
case south-America you can use that knowledge to
for example expand to the US in a later point in
time.
The Media Markt can also go international because
Panama is an emerging market. Panama is an
emerging market because the people earned more
money than in the year 2000. according to the
Worldbank the Panamanian people earned about
$13.000 more in 15 years. This means that the
purchasing power of the Panamanian people went up. When the purchasing power of people rises
they can afford to buy more luxury products like a new TV or a new computer, and these can be
bought by the Media Markt.
The third reason that the Media Markt could go to Panama is cost reduction. The costs in Panama
will be lower than they are in Europe simply because of the economy in Panama. As said earlier the
Panamanian people earn about $20.000 a year, compared with the $48.400 in the Netherlands.
( http://data.worldbank.org/indicator/NY.GNP.PCAP.PP.CD?end=2015&locations=PA-NL&start=2000
source) because the people in Panama earn less money than we do here in The Netherlands the costs
of the personnel will be less.
These are all good reasons for the Media Markt to go to Panama, but they might encounter some
problems too. One of these problems can be the recruitment of the right staff. This can become a
problem because the Panamanian are less educated than we are over here in The Netherlands.
Therefor the Media Markt has to train their new employees in Panama by current employees that
work in The Netherlands, they need to do this to make sure that the right advise and the right
products are given and sold to the customers. The Dutch employees can also train in the norms and
values of the Media Markt, what I mean with this is how the Media Markt want’s their employees to
act when working.
The final thing that the Media Markt needs to do the decide to go to Panama is make a PEST analysis,
when doing this they can really decide of Panama is the right country to go to and if it’s worth the
risk of expanding their business to Panama.
Name, Class, Student no, date , BTEC Nationals in Business, Unit 1 Business Resources 2015-2016
1
