ABC Washing Machines in Czech Republic

Solution Preview

ABC Washing Machine Company

It would be necessary for the CEO of ABC Washing Machine Company to understand information about the market before marketing front load washers and dryers in the Czech Republic. Key factors to evaluate would be the economic, legal and political concerns. In addition, it would be important to consider staffing and marketing mix strategies for the operation.
The Czech Republic has one of the fastest growing economies in the European Union (Ponikelska & Laca, 2015), with the gross domestic product increasing. Currently the country is experiencing growth in foreign markets, declining oil prices and strong domestic fiscal and monetary policies. This good news should be approached with caution, however. The nation suffered a "record -long recession" (Ponikelska & Laca, 2015) that ended in 2013, the same year the pro-austerity government collapsed. The economic upswing has been a result of controlling currency and supporting exports. The country is experiencing continued growth in manufacturing segments, in particular vehicles and machinery. Retail sales are also strong, but not necessarily in all categories. Recent figures from the European Commission of Economic and Financial Affairs (2015) indicate the country has lowered inflation figures and decreased unemployment. This is favorable news for the ABC Washing Machine Company, since more employed people and lower inflation would indicate greater interest in buying larger goods and more funds to purchase products.
The Czech Republic is located in central Europe and has a population of 10.5 million people The Czech Republic has its own currency (Czech crown), having delayed adopting the Euro. This is in part due to the "slow pace of legislative and judicial reforms and uneven enforcement of contracts by the Czech courts" (Bureau of Economic and Business Affairs, 2012). This ...