Market attractiveness: Angola

The attractiveness of foreign markets is something to consider if an organization is planning to explore the international markets. How the organization understands these market can determine the success or failure of the organization. While there is a lot of information about these markets at international level, it is important for the individual country to conduct its own research for the purpose of the investor.

Angola is classified as a least developed country. It stable political and these is likely to continue since the fear of civil war and countrywide unrest has real gone down. The ruling class in Angola is mainly comprised of politician. They control the resources and manipulate them in their favor. They do this to keep themselves in power therefore interfere with investors too.

The mode of entry to internationalized market is very important some of the things to consider include level of experience in the market, risk involved and the product life cycle among others.

Looking at the market environmental factors under the PESTEL model which analyses the market environment under political legal factors, social, economic, environmental and technological factors the following comes up.

The political stability in Angola is relatively stable; this is after the 4 decades of continuous civil unrest the country is now embracing peace. Angola is said to be democratic where there is a separation of power between the executive, the judiciary and the legislature. The executive has a strong hold of the legislature this is because he is directly elected by the parliament. The party leader of the winning party becomes the president. The executive has enormous powers this has made the political class to cluster around him in order to benefit. Much of the resources remain with the few elites while the masses continue to be poor. Handout are given to the rest of the population to make them calm and having seen the fruits of war many would not think of war as a solution to inequality. Former rebels have also been neutralized therefore the country is likely to experience political stability for the next 10 to 20 years.

Angola is rich in resources, it also depend mainly on oil revenues hence relies on the international fuel prices. There is also inequitable share of resources among the citizens with majority of them being poor. Infrastructure development is concentrated in urban areas living the rural areas in accessible. Internet use is also very low in the country. Since most of its population is poor their purchasing power is very low.

 Angola’s main strengths are the Low wage levels, beautiful sceneries for tourist largely underdeveloped rural areas suitable for rural tourism and Stable political climate. Its weaknesses include lack of sufficient infrastructure and low levels of literacy requiring organizations to engage in extensive trainings for staff. Some of its Opportunities include rising oil prices that could raise oil revenues, improved legislative frameworks for encouraging foreign investments. Its main threats are competition from other FDI attractions in Africa, also its perpetual poverty which could lead to social unrests hence lead to losses for businesses.

Angola has a room for international market with a good research an organization can enter into its market and succeeds. With a vast of untapped resources and relatively stable atmospheres it attracts investors to its region. The main challenge though is the interference of the political class on how the resources are shared hence creation of inequality.

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