Read the Case Study below and answer ALL of the questions that follow. For 124 years, Philips has been a leader in building and shaping markets with meaningful innovations including the radio, audiocassette, videocassette recorder (VCR), compact disc (CD), and digital versatile disc (DVD). In order to succeed in its markets, Philips must carefully and continuously analyse the marketing environment. At the beginning of the 21st century, Philips needed a new and coherent marketing strategy for the entire Middle East region, which had been identified as one of the key markets by the company. In order to better address macroeconomic factors and regional preferences, Philips wanted to develop a more integrated and less fragmented marketing strategy for the region. Today, the lighting market is impacted by multiple factors, three of which are particularly important. The first is the macroeconomic situation, which is influenced and shaped by factors such as inflation rate and GDP, and which is influencing new construction and, consequently, the number of lighting installations. Philips used this key driver as a main indicator in its model to screen markets in the Middle East. Another important element used was, and still is, countryspecific energy efficiency regulations and an increase in energy awareness, which are redefining future lighting product portfolios. For example, in 2014 the UAE government announced an energy efficiency regulation on lighting products, which bans the sale of inefficient standard bulbs while also seeking to reduce carbon dioxide emissions. Government action limiting certain energy sources key being nuclear power due to events over the last years results in additional demands for energy-efficient products such as LEDs. For example, Dubais government has started an initiative in 2014 to switch all lighting in government buildings to LED, which is more energy-efficient and can be digitally controlled. These such projects have helped Philips to grow in the region. Philips has managed to assess these factors, which heavily influence and shape the marketing environment for change. The companys ability to understanding current and probable future shifts in the lighting market has driven its continuous growth in this region, making it the market leader in Middle Eastern countries such as the Emirates, where it has a 38.5 percent market share trailed by Osram, with 22.6 percent and General Electric with 16.3 percent

Question 2 (12 Marks) The first task of the international market researcher is to scan markets across the globe to identify the potential countries for growth. In conducting the scan, the researcher of Philips will use three criteria to assess a countrys potential. Critically evaluate and discuss.