Identify and research the proposed new international markets Poland ReportCountry BackgroundPoland's population is 38.2 million. Its GDP is $545 billion, and its per capita income of $14,340.7Consumers in Poland are culturally a blend of eastern and western Europe.Market BackgroundThe Polish furniture market is $3.2 billion and has consistently grown at least 5% annually over thepast several years. Nine companies in Poland hold at least 3% market share. The largest brand is IKEA,which has been grown rapidly there for the past three years, sold just under $700 million in Poland in2014, and has a market share of 22%.Channels of DistributionMore than 70% of Polish consumers shop for furniture across multiple stores, looking for the bestcombination of price and style. Polish consumers purchase over 80% of their furniture in retail stores.E-commerce in Poland accounts for about 9% of category sales. Single-brand retail stores account for30% of retail sales. The other 70% of furniture is sold at multibrand retailers.Consumer InsightsBoth durability and aesthetics are important to Polish consumers. Interior design is a growingphenomenon in Poland, so trendy products are valued. The most successful companies release newstyles of furnishings quickly. However, many companies produce trendy products that have lowerprice points, but these products are not very durable.ForecastsForta Branded Entry. In the Polish market, forecasts suggest that Forta could build a .5% marketshare in year one, an additional .5% in year two, and an additional 1.5% in year three, totaling a 2.5%market share as a branded entry. Retailer margins are 30%. To reach this level of market penetration,Forta would need to spend $20 million for marketing and another $6 million in design and productionimprovements. It is estimated that a Forta product would have a retail price of $110.Forta Private-Label Entry. In comparison, forecasts suggest that Forta could build a .5% marketshare in year one, an additional 1% in year two, and an additional 2.5% in year three, totaling a 4%market share as a private-label entry. The large private-label forecasts are due to Forta's ability tounderprice competition to gain a foothold, which in turn is due in large part to lower labor costs andexcess capacity. As a private label, Forta would need to pass through 30% of revenues to the retailerand 25% to the consumer-facing brand. The retailer would charge an average price of $110. Forta wouldneed to spend $5 million for marketing and $6 million in design and production improvements. Entry StrategyBrandRetail Market SizeYear OnePenetrationYear TwoPenetrationYear ThreePenetrationTotal MarketPenetrationRetailer MarginRevenue Pass-Through to BrandYear OneForecastedRevenuesYear TwoForecastedRevenuesYear ThreeForecastedRevenuesDiscount RateTotal DiscountedForecastedRevenues% MarginTotal MarginMarketingInvestmentsOther InvestmentsTotal InvestmentsEstimated Three-Year ProfitsBranded EntryForta$3,200,00030%0%10%40%20,0006,00026,000PolandAbilit$ 3,200,00030%0%10%40%17,0003,00020,000Private-Label EntryForta$3,200,00030%25%10%40%5,0006,00011,000Abilit$3,200,00030%25%10%40%4,0003,0007,000

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In this report, we will analyze the proposed new international market entry for a company called…