Demand of diamond

It is close and it is usually the first market. That sets management’s outlook even if not so appropriate for other markets.

Arboria is the home market and is where all the company’s experience arises from. When they try to trade abroad they run the risk of not properly adapting their product or service to what the foreign market requires. As it says in the answer:

“Porter argues that the home market usually has a disproportionate impact on a firm’s ability to perceive and interpret buyer needs. One of the reasons for this is the attention the home market requires. Product development usually takes place in the home market. Pride and ego focus attention on succeeding in this market. Pressure from buyers is immediate and the proximity and cultural similarity of these buyers mean that their needs
are well understood.

MachineShop has reaped the benefits of supplying a vigorous, growing and demanding home market in Arboria which, it believes, may allow it to anticipate buyer needs in other countries. Dave Deen believes that macroeconomic factors suggest hat Ceeland is quickly beginning to resemble Arboria. MachineShop has to hope that his perception is correct and that consumers’ needs are not just idiosyncratic to Arboria. Further research needs to be undertaken to ensure that Ceeland’s cultural and social values will really lead to the changes in consumer behaviour that the economic trends are suggesting. If they do, then MachineShop will have definitely benefited from demands placed on it from the sophisticated and demanding buyers in Arboria.”