IpexCorporation is a network service provider. It has various brancheswith its headquarters in New York. The corporation is owned by CCbrothers and sisters and utilizes bureaucratic organization structurewith 560 employees in total. The company was developed in 2010 tobridge the gap that existed in the communication arena quality,efficiency and affordability. People like enjoying fast communicationservice, and with the development of online platforms, it has becomenecessary for this organization to keep on inventing quality andfastest network speeds. Thus, its mission and vision are “toprovide the best and fastest network at an affordable price to all,”and “to be a global provider of the fastest network of all timescutting through cultural and physical boundaries.” In , cellphones and personal computers were prohibited until 2008 whenPresident Raul lifted the ban. The recent talks between US and ,and the reopening of embassies have allowed the US telecommunicationcompanies to trade in . Ipex Corporation has seen a window ofopportunity in with recent effort to heal the wounds thatexisted between the two nations.
Territory,Terrain and Climate
is a third world island nation of the Caribbean Sea its land covers109884 km2 while its territory covers 110860 km2 (Gebelein,2012).It is located 77 km west of Haiti, 21 km south of the Bahamas, 140 kmnorth of Jamaica, 150km south of Florida and 210 km east of Mexico(Gebelein,2012).Its land is mostly flat to rolling plains with rugged hills andmountains in the south. The highest point of the island is PicoTurquino at 1974m above sea level, while its lowest point is 0m atsea level (Gebelein,2012).It has white sandy beaches, mangroves, and marshes found in thecoastal area. The country enjoys a tropical climate with the rainsfrom May to October while the dry season from November to April. InJune it experiences high levels of rainfall compared to other monthswith also the highest temperatures with a range of 27°C. The coldestmonth is January with a temperature range of 21°C (Gebelein,2012).
TargetMarket Relevant History:
Thetarget market has not been a conducive place to trade due to traderestriction that existed between it, EU and the US. Let’s reviewsome of the relevant histories of . It became a colony of Spainafter Christopher Columbus claimed it in 1492, but soon there wouldbe a rebellion(Staten, 2005). In 1868 to 1878 fought for its independence, which led to anagreement that Spain would give more freedom to n people andreform their actions, but Spain never kept their part of the bargain(Staten,2005).This led to another war of independence in 1895 to 1898 fronted byJose Marti, which was won with the backing of the USA in 1898(Staten,2005).The USA backing came at a cost, in 1902 through Platt Amendment, gave up their sovereignty as the US could be involved in its affairsas it enjoyed US protection in return (Staten,2005).In 1925, the Socialist Party was formed, this in some way prepared for communalism which exists up to date (Staten,2005).
TheUS being involved in n matters did not last long: they alteredtariff rates and ’s sugar quota in favor of and ceasedtheir right to be involved in n affairs in 1934 (Staten,2005).The n people would witness less involvement from the US when itwithdrew its military assistance to Fulgencio Batista in 1958. As aresult in 1959, Fidel Castro seized power aided by Raul Castro andGuevara. In 1960, Fidel Castro nationalized all the US businesseswithout compensation. As a result, Washington broke diplomatic tieswith . It allied itself with Russia in 1962 afraid of US invasion(Staten,2005).In 1965, it became a communist nation. In 1991, the USSR collapsedand as a result, the Soviet military advisers left (Staten,2005).In 1993, the US tightened its embargo on , which was subsequentlymade permanent in 1996 after shot down two aircrafts operated byMiami-based n Exiles (Staten,2005).The US would be involved again with when it exported food to itafter more than 40 years when the n government requested help tocope up with Hurricane Michelle in 2000 (Staten,2005).
In2002, would be in the international limelight when the HumanRights Commission criticized the country again for the unfairtreatment of dissent voices and during the same year, the NationalAssembly of made the socialist system of government permanentand untouchable (Staten,2005).In 2004, it banned transactions with dollars. Fidel Castro startedmissing in public because he was hospitalized. Later, he retired andgave his brother Raul power, who in turn lifted the ban on privatephones and computers in 2008 (BBC, 2015). Also, during the same year,EU lifted sanctions imposed on , back in 2003. Things startedbecoming better when the US Congress voted to lift Bushadministration restrictions on ns sending money home and visitingthe USA in 2009 (BBC,2015). In 2011, President Obama relaxedrestrictions on travel to . After 50 years, passed a lawthat allowed people to purchase and sell their possessions in2011(BBC, 2015). In 2015, things became even better when the USloosened some trade and travel limitations on after the two-daytalk in Havana where they discussed various diplomatic issues and theway forward towards trade relations. In the same year, the twocountries reopened their embassies (BBC, 2015).
SocialLife and Economic Statistics of
Theisland country is led by Raul Castrol, who received power from hisbrother Fidel Castro under authoritarian rule. It is divided intofifteen provinces from its previous six. The n people speakSpanish as their official language, but also they learn English inschools which begin from primary, middle, secondary, vocational totertiary. The education system has been in place for centuries thiscan be supported by Havana University, which was established in 1727. It is estimated that over 110,000 students are enrolled in higherlearning institutions (World Bank, 2016). Its national population isestimated to be 11.39 million with 77% of the population living inurban areas while the rest of the population lives in rural. Of thatpopulation, 5, 3830,653 million people constitute the labor forceaccording to World Bank. This number comprised people who meet theinternational labor organization definition of economically activepeople it included both the unemployed and employed (World Bank,2016).
Also,men and women constitute 50.3% and 49.7 % of the total populationrespectively. The age bracket between 14 and 59 constitute 71% of thepopulation while children reflect 18% and the rest of the percentagerepresent those above 59 years (World Bank, 2016). Per capita incomeis estimated to be 6789.8 while their GDP was 77.15 billion USdollars in 2013 (World Bank, 2016). n wealth disparity has beenkept at minimal except for key governmental and military officials.But the situation is changing rapidly with the adoption of modernprinciples of trade. As of 2014, the average income of n peopleper month was estimated to be 471 peso, which is equivalent to $20(World Bank, 2016). Since the cessation of some communist policies intrade, some people were released from their previous jobs increasingthe unemployment rate by 5% in 2000, but it has decreased to 2.4 % in2015 according to World Bank. This has been contributed by thelegalization of the dollar, growth in tourism and the informalsector.
Thejudicial system of is composed of provincial courts, municipalcourts, and People’s Supreme Court(Travieso-Díaz, 1997).The People’s Supreme Court is the highest court of the land, and itserves as the last resort of appeals from provincial and municipalcourts(Travieso-Díaz, 1997).It has jurisdiction to issue regulations and propose laws. The courtsof do not rely mainly on precedents, but their written laws. Onthe issue of religion, most families are Christians, especially RomanCatholic. n families have adopted the nuclear family system withthe responsibilities of parents being equal in childcare and domesticlabor as stipulated by the Family Code of 1975 article 26.
Thetransport infrastructure of is not well developed as a result oftrade embargos and strain diplomatic relations with USA and EUnations. Roads are the main transport system that is used by npeople, though other forms exist such as air, water and rail. On theother hand, communication is still not yet developed as citizens werenot allowed to own cellular phones and personal computers until RaulCastrol lifted the ban in 2008. The telephone services that areprovided vary greatly depending on geographical locations. The majorproblem affecting n is finding a telephone line. This slow paceof development in communication has been contributed due tomonopolization of communication network service provision.
Thelack of these social amenities affects the way business is done,though the n people have not lost hope. While dealing withns, it is important to avoid pressure tactics or hard selling asthey value harmony and building relationships. Furthermore, whenn people meet for a business discussion, there is always 5 to 15minutes casual talk and to them, interrupting someone while speakingis considered acceptable. They don’t put much stress on the dressthey usually prefer informal ones.
Thecountry has been blessed with various mineral resources which itexports ranging from oil, iron ores, silica, copper, chromium, cobaltand nickel. The mineral together with long-standing industries ofsugar milling, tobacco, and other manufactured products such asconstruction materials, agricultural machinery, steel, andpharmaceuticals have made to be the 140th largest export economyin the trading world. was on record in 2014 for importing goodsworth $ 4.17 billion and exporting goods worth $1.72 billion (OEC). It exports its goods to China, Senegal, Spain, Netherlands, and theUnited Kingdom, while its top imports consist of corn, concentratedmilk, refined petroleum, poultry meat and wheat. They are importedfrom Spain, Canada, Mexico, Brazil, and China (OEC). Some tradeobserver inclusive of key foreign leaders and human rights activistscontends that the United States should find a reason to lift theeconomic embargo on .
In, according to World Bank (2016), only 22 people in 3 months hadaccess to mobile phones. Moreover, those that had access to theinternet in the last 12 months out of 100 people were 30 (World Bank,2016). Over the decades, has had no freedom to enjoy the use ofcellular phones or computers, or any gadgets that could assess theinternet (BBC,2016).The introduction of advanced communication network service providersat an affordable price through which people can assess the internetand communicate will be historical. The n people and eventourists who visit will be thrilled to know that they can easilymake calls without network speed issues and distance walk to boothphones. Imagine if you were never allowed to see the light of the sunand one day you were released to see it. What would be your reaction?The n people will be jovial to enjoy this freedom that they havebeen denied. The n people are potential customers of internet andcommunication services, thus it will be a profitable venture for atelecommunication company to invest in .
Challengesof Market Penetration
Thechallenges that we will incur while trying to implement our plan arepoor communication network and transport infrastructure.Communicating to monitor progress in various provinces might behindered by a lack of quality communication networks, the gap weintend to fill. Also, installing communication boosters involvetransportation of heavy machinery and equipment, the lack of goodroads might be challenging to our venture. We intend to use satellitephones and ETECSA services before we start using our network. Thereare also challenges that might result from our countries’ previousstrained relationships, but with time as people realize theimportance and quality of the services we provide, we are hopeful ourcompany will break through and generate enormous returns. Ourcompetitor is a state-owned organization we thus expect a lot ofgovernment intervention and some restrictions. Also, there is achallenge of illiteracy in using the services that we will beproviding. Many of our customers were denied a chance to learn how touse phone and computers. We have a challenge of acquainting peoplewith knowledge, benefits and changing their psychology that phonesare essential not a luxury as they have been used to because of highprices they incur when they use phones and internet services.Moreover, for our company to work efficiently we need the US-nembargo to be lifted completely. Thus, we have a challenge of the USCongress agreeing on this matter.
is a small country. Thus, we aim to establish network boosters inevery province, but our concentration will be in populated areas tomaximize market share. To avoid criticism and rejection from locals,we will include them in our projects as manual laborers while thehigher level of management will consist of our experts. After thesystems are up and running, we will make sure that our customer careservice providers will be composed of Spanish, English, French, andwith time, relevant languages will be incorporated. Despite thecompany being from the US, the n branch will sell, advocate andreflect the image of the n people. Other strategies that weintend to use are price leaders and quality. The organization willprovide the best communication network regarding speed, price andcustomer care services. Also, we will do focus marketing, where wewill concentrate our efforts in major towns using outbound marketingstrategies because has not developed to an extent inboundmarketing could be viewed as a successful marketing plan. We hope wewill cut through utilization of the above Porter generic strategies.Moreover, we intend to provide one-month free internet services toour customers.
Theinternet is accessed through services provided by ETECSA, astate-owned company, which cost $2 per hour ironically for a countrywhose average family income per month is $20(BBC, 2016).This has only profited 5% of the n population while 95% hear howthe internet works from lucky neighbors. To make matters worse, thereceiver is charged for getting a call: the price of the call isborne by both the caller and the receiver. This has made thetalkative n people be brief while on calls. But the company in2015 promised to waive the receiver’s charges.
Thestate-owned company uses its states owned channels and radio stationto advertise to people. It has provided Wi-Fi hotspots around thecountry which allows people to access the Internet and connect withthe rest of the world and relatives (BBC,2016).The organization has never seen the reason to do price promotion asit is owned by the state. It has also set up phone booths from wherepeople can make public calls.
BBCNews. (2015, July 22). profile – Timeline – BBC News. Retrievedfrom http://www.bbc.com/news/world-latin-america-19576144
BBC.(2016, March 21). internet access still severely restricted -BBC News. Retrieved fromhttp://www.bbc.com/news/world-latin-america-35865283
Gebelein, J.(2012). Ageographic perspective of n landscapes.Miami, FL: Springer.
OEC.(n.d.). OEC – (CUB) Exports, Imports, and Trade Partners.Retrieved from http://atlas.media.mit.edu/en/profile/country/cub/
Staten, C. L.(2005). Thehistory of .Princeton, NJ: Recording for the Blind & Dyslexic.
Travieso-Díaz, M. F.(1997). Thelaws and legal system of a free-market : A prospectus forbusiness.Westport, CT: Quorum Books.
WorldBank. (2016). | Data. Retrieved fromhttp://data.worldbank.org/country/cuba