Bromic Heating Co business exposure project to the Chile market

Abstract

The purpose of this article is to provide Bromic Heating (the leading Australian EGC Group company) with the necessary information in order to expand their operations into the South American market, and make recommendations on how this would be best practice achieved. The part of the South American market that EGC Group has recommended Bromic first expand to be Chile. This article contains a regional economic analysis, which showed South America’s services sector accounted for 64% of its GDP, and of that 64%, tourism was responsible for 9%. Tourism is an industry that provides a lot of demand for products such as Bromic’s, and this large percentage of GDP, as well as expected growth in this sector, makes South America a great region for Bromic’s expansion. When deciding what country to expand to first, Chile was identified as the primary target, mainly due to the free trade agreement between Chile and Australia as well as its associate membership of MERCOSUR, the South American trading bloc.