Introduction
There are different countries that the client should consider as far as market expansion is concerned. They include but not limited to Mexico, Botswana and Indonesia. Some of the reasons why the client’s organization should strongly consider Mexico is due its geographical location, whereby it borders the United States as well as Canada meaning that the easy of doing business is realized (Forster-Cox et al). Also, Mexico is a fairly politically stable country; an indication that the nature of doing business is well. On the other hand, one of the main reason why the client can be encouraged to start their venture in Botswana is that unlike many African countries, it is a political stable nation, and any general election does not by any means affect nature of doing business (Nehrbass, 213). Indonesia, on the other end, is a country that naturally attracts investors considering that it has strongest investor protection globally.
PESTLE Analysis Summary
Mexico
Political Environment
The advantage of Mexico in relation to political environment is its distinctive political system and sharing border with the United States and Canada. On disadvantages, Mexico experiences political instabilities and sometimes the problematic border with the United States.
Economic
Mexico has 11 free trade agreement in at least 44 countries.
Socio cultural
However, an investor should be careful not to be cheated and crime rates are high in the country.
Technological
Mexico has welcoming people, and they are over 53 million who can form a reliable online market.
Legal
Legislation protecting investors, to a large extent.
Botswana
Political
It is a multiparty constitutional democratic and political stable country.
Economic
Predictable inflation Poverty and unemployment are high.
Social
It is one of most safe countries in Africa.
Technology
Less use of technology due to poor network coverage.
Legal
Investors protected and encouraged via subsidies.
Environment
Unstable and unreliable agricultural condition.
Indonesia
Political
The country by all means protects the investors.
Economic
It is largest and most stable economy in south Asia.
Social
The Indonesia people always live in harmony.
Technology
Use of technology is high and encouraged in the country.
Legal
Corruption is highly discouraged.
Environmental
Many cases of natural disasters such as earthquakes.
Opportunities
The three countries that are supposed to be considered for market expansion have diverse yet unique opportunities, which provides the client a perfect space to consider each one of them. For example, Botswana and Mexico have a stable political system, an indication that there is no need for alarm for any investor even during the electioneering period. Unlike other countries around the world, Indonesia agency for fighting corruption is serious whereby there is evident for high conviction rates in as far as procurement cases are concerned (Kamil, Dairabi, et al). Furthermore, Mexico has a big consumer market with over 53 million people who can access internet, which is a perfect opportunity for different kind of products to thrive. Additionally, Mexicans are welcoming people meaning that a foreign investor will not take a long time to adapt and do business in this kind of environment. This is a similar environment in Indonesia. Another opportunity in Indonesia is that it has fair taxation system and predictable inflation (Hajawiyah et al). In Mexico, the country has over 11 free trade agreement with more than 44 countries, which itself offers a great and reliable business opportunity.
It is imperative to note that even though the three countries offer opportunities, there are several threats found therein. For instance, the U.S Mexico border has been a point of discussion not only among the two countries but even globally (Forster-Cox et al). If not well taken care of, this is a point that can affect trade. Besides, crimes rates are high in Mexico and terrorism is an issue in Indonesia (Vilalta et al., 7). Besides, Indonesia can be unpredictable in as far as inflation and natural disasters are concerned, which are factors that majorly affect ease of doing business and its continuity. In Botswana, some of the threats include decline in Foreign Direct Investment and unstable agricultural conditions.
Recommendations
One of the main reasons why I highly recommend entry to the Mexican market is due to its high consumer market with more than ready 50 million people who have knowledge of internet use. Additionally, I would as well recommend entry to the Indonesia market due to investor protection, which is a clear indication that a lot of money will not be spent on kickback and corruption; hence, the investor will get their real value of money. Besides, Indonesian are harmonious people an indication that as long as the organization provides the best services and products, the business consumer relation will be perfect. A market entry to Botswana can be encouraged banking on the country’s stability and support for investors due to friendly policies.
Final Choice and Conclusion
I would highly recommend and inform the management to prioritize Botswana for a number of reasons. Firstly, it is a relatively unique market in a fairly improving continent, which means that the organization has an opportunity to not only conquer Botswana but African continent as a whole (Nehrbass, 211). No doubt that this is just but a massive market. I would least recommend market expansion in the Mexican market due to fact that investors are not well protected and cases of bas economic situation in some parts meaning that it can be unpredictable market.
Works Cited
Forster-Cox, Sue, Emma Torres, and Freida Adams. “Essential roles of promotores de salud on the US-Mexico border: A US-Mexico border health commission perspective.” Global Journal of Health Education and Promotion-Special Issue 18.1 (2018): s4-s18.
Hajawiyah, Ain, Trisni Suryarini, and Tarsis Tarmudji. “Analysis of a tax amnesty’s effectiveness in Indonesia.” Journal of International Accounting, Auditing and Taxation 44 (2021): 100415.
Kamil, Dairabi, et al. “Fighting corruption through education in Indonesia and Hong Kong: comparisons of policies, strategies, and practices.” Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC) (2018): 155-190.. “Fighting corruption through education in Indonesia and Hong Kong: comparisons of policies, strategies, and practices.” Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC) (2018): 155-190.
Nehrbass, Alexander. “Africa’s Miracle? Assessing Political Stability in Botswana.” The African Review 47.1 (2020): 209-222.
Vilalta, Carlos J., and Gustavo Fondevila. “Modeling crime in an uptown neighborhood: the case of Santa Fe in Mexico City.” Papers in Applied Geography 5.1-2 (2019): 1-12.