1.

Use macro indicators from Exhibit 4 to evaluate the overall

country attractiveness of the three countries. Which of these
factors should AFJ place particular attention & why?
Azza Fahmy does not establish Turkey, Spain and France as launch pads
for AFJs expansion to global market without careful and sound
analysis. Being amongst the most important trading hubs both
regionally and globally with impressive economic achievements, the
three destinations brings about promising opportunities for AFJ, both in
short terms and long terms. Bearing an extensive global trading
network, Turkey, France and Spain allows AFJ to further expand and
infiltrate not only the European market, but also the US market in the
future. Furthermore, Turkey, as well as Spain, with a very strong gold
production industry, can be a brilliant supplier candidate AFJ could
consider during the global expansion. In addition, there are demanding
markets for AFJs products in these three countries, granting AFJ a firm
base to establish its business in Europe during the initial stages.
Following the CAGE (Cultural, Administrative, Geographical, Economics)
model closely, exhibit 4 provides a clear and concise comparison
between the three countries for further analysis. In terms of economics,
impressive GDPs and GDP growth indicates strong and developed
economies. Developed economies often offer less risks and much
higher rewards, a more reliable investment. With great per capita GDP
comes great purchasing power, coupled with favorable population
composition, consisting mostly of upper-class working adults, the three
economies most certainly promise a large consumer base for AFJ
products, which are considered luxuries, rather than necessities. As
these three economies are very well established and developed, with
France being in the lead, they are politically stable and the rule of law
is well entrenched. Cultural difference acts as an important factor
dictating how well-received AFJ products would be while diving into
these markets, and hence signaling how AFJ should adapt accordingly.
Conclusively, the three selected countries are alluring markets for AFJ
to expand internationally.
AFJ should primarily focus their attention on the economics and
demographic aspects of the markets. Being politically stable and
cultural-friendly, Turkey, Spain and France pose little threat to AFJ in
stepping into their markets. Nevertheless, economic strength, together
with consumer base, determine how well AFJ will fit in and establish
their presence in these markets. Solid economic growth would allow for
greater success in the case of further expansion in the future. Being in
the luxury category, AFJ products enquires a very specific consumer

base. While offering one of the most ideal population composition with
favorable upper-class size, these three countries serve as attractive
destinations for AFJ to establish its first base outside Egypt. These can
be considered the utmost important aspects AFJ should contemplate
while planning their expansion into these markets.
2. Other than these indicators, what other factors are likely to be
considered by AFJ in deciding which country/countries to focus
first?
Beyond the aforementioned indicators, other aspects of the CAGE
model play a decisive role on AFJs success in its international
expansion.
Cultural distance, while not being covered by exhibit 4, plays out
importantly in any decisions that should be made by AFJ. Although
France is the most attractive playground as a potential market based
on economic status, Turkey resembles Egypt the most in terms of
culture. Therefore, Turkey is the safest bet for AFJ to establish its base
due to low tendency to unforeseen issues such as discrimination
against outsiders that AFJ might encounter during its effort to infiltrate
the market. Moreover, due to the nature of the products, Turkish people
might have higher favorability towards AFJ existing products thanks to
the close gap in cultural difference than the other two countries.
Nonetheless, AFJ should also study and understand the cultural
difference, as well as consumer behavior, in both Spain and France as
they are indeed impressive potential markets. The great success in
collaboration efforts with foreign designers previously has shown that
AFJ is totally capable of tapping into new markets by adapting while
maintaining its signature as an Islamic jewelry crafter.
Competitors are another aspect AFJ need to pay close attention to. Due
to low level of completion in its local market, AFJ might not be very well
familiar in dealing with an external threat to its success, especially as
an outsider. France, for instance, while being the most attractive
market to tap into, has a fragmented jewelry market with over 25
players in the field. Cartier Joaillerie International SAS, leading the
market with 12% value thanks to great expertise and brand loyalty, is
indeed a humongous challenger that AFJ has to face. Intense local and
international competitions in these markets creates a high barrier to
entry for newcomers to set foot on a saturated territory and establish
themselves as a recognized brand. As such, it is recommendable for
AFJ to refrain from rushing into the savage blooshed during its initial
international deployment, and resort to less competitive markets in

order to steadily build a strong foundation, ensuring higher survivability

in the future.
Despite the stable political statuses, it is recommended for AFJ to
carefully consider legal issues before setting foot into the new
environments. This helps mitigate any unwanted risks AFJ might face
during its initial launch. Intellectual property laws and piracy, as well as
any foreign discrimination would certain hinder AFJs effort in
establishing itself as a brand in the new economies. As such, so as to
minimize the countless worries and considerations, AFJ should prepare
itself for any detrimental encounters they might face.