Business plan - It Shoes Business Plan Term Paper

Business plan - It Shoes Business Plan - Term Paper Example lthough companies like Rollasole and Afterheels are selling ballerina shoes through vending machines in countries like UK, USA and Australia but they their penetration in French market is low hence IT shoes has the opportunity to cater to the demands of an untouched market (Fleming, â€Å"Flat shoes in a flash! Vending machines that dispense ballet flats to stiletto-sore party girls take U.S. clubs by storm†). The business venture has the opportunity to consolidate business opportunities in the country due to absence of any market leader. Stable political environment of France has increased the business opportunity for both foreign companies who planning to invest in the country and domestic players who planning to diversify existing business portfolio. Market line (2012) has reported that, government of France has restricted foreign direct invest up to 1, 500, 000 Euros for foreign companies planning to expand business in territories such as Saint Pierre, Miquelon, Wallis and Futuna etc. Government has imposed high corporate tax on foreign players in order to protect interest of domestic players. There is no doubt that favorable government policy will protect IT shoes from competitive threat of foreign players. Conjoint effect of economic recession and sovereign debt crisis has decreased the GDP growth rate and purchasing power parity of people of France. French government is trying to compensate high level of external debt by increasing tax rate on people. Market line (2012) has reported that tax burden on people of France has increased by 20% to 30% within last few years. Increased tax burden has reduced amount of disposable income for French people, which has resulted in reduction in demand for retail merchandises. It is evident from the economic analysis of France, IT shoes should think about using competitive pricing in order to generate demand among customers. Market line (2012) has reported that almost 35% of population in France belongs to the age group