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Recommendation of final country

The German market remains the largest surgical instruments import market throughout the history of Pakistani exports. According to HOPE (Hospitals of Europe), Germany had more than 3350 hospitals in the year of 2006. According to CIAs (Central Intelligence Agency) estimation of the year 2010, the population of Germany is almost 82 million and the life expectancy of Germans is almost 79 years. The government spending on health budget is 10.4% of the GDP, as mentioned by OECD (Organization for Economic Corporation and Development) in the year 2001. The inflation rate in the year 2009 was 0% and its GDP (Gross domestic Product) purchasing power parity was $2.811 Trillion (highest in Europe), which can be the thing that have attracted the exporters of surgical instruments for attaining a high profit margin.

Germany is the most top ranked country in the assessment of EU countries and is always considered as the second largest importer of surgical instruments from Pakistan. Germany is the second biggest importer of surgical instruments from Pakistan and it even produces surgical instruments in their own country as well. However the main difference between Pakistani made and German made surgical instruments is the cost of production. In Pakistan the labor and production costs of surgical instruments are very low as compared to Germany and this gives Pakistani manufacturers a bit of a competitive advantage over other countries. However the key cost competitive advantage gives Pakistani manufacturers little edge over these countries. The reason for exporting surgical instruments is the cost of the manufacturing of surgical instruments, which is very low compared to other manufacturing countries. It gives a unique advantage to the company over other companies in foreign countries.

Market Segmentation and Analysis

Market segmentation is a marketing concept which divides the complete market set up into smaller subsets comprising of consumers with a similar taste, demand and preference. A market segment is a small unit within a large market comprising of like minded individuals. One market segment is totally distinct from the other segment. A market segment comprises of individuals who think on the same lines and have similar interests. The individuals from the same segment respond in a similar way to the fluctuations in the market. It is important to note that surgical instruments manufactured in Pakistan have a high demand both in Western Europe and USA. However, we will only select Germany as our country for exporting because of the factors mentioned above. Surgical instruments cater to diverse markets and not just one particular market. It is not used by a particular segment but rather it comprises of various customers who purchase and use surgical instruments.

Firstly, these are hospitals. Hospitals need surgical instruments to perform surgeries. They need them to perform surgeries on their patients.
Secondly, doctors and dentists need surgical instruments that have set up their own private practices. Not all surgeries are performed in hospitals. Multiple minor surgeries are also performed in clinics where doctors are practicing medicine privately. Thirdly, drug companies also require surgical instruments. For example they need items such as forceps scissors, bowl, jars and instrument trays to perform their operations efficiently. Above are the three types of market that require surgical instruments. Also, each market has a different demand size pertaining to surgical instruments. Hospitals hold the highest demand for surgical instruments followed by doctors and dentists and lastly drug companies.

Germany presents with it its own set opportunities, threats, challenges and risks. of

Germany does have immense potential as an export market presenting with it high chances of earning revenues and receive a large chunk of export orders simply due to the fact that Pakistani manufactured surgical instruments are made of high quality and are price competitive due to low labor costs.

The report also states how to enter the German market and entry strategy should be adopted. Additionally, a clear analysis of the market has been done. Various target markets have been identified and three broad categories of market segmentation emerged. Also, our company has identified all the relevant tasks pertaining to how tap the German market. Our marketing mix strategies help to identify what kind of pricing strategies should be adopted, how and where to sell the product, what promotion strategies should be adopted.