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What is the cost of entry – is it prohibitively high, or can anyone enter?

by | Nov 12, 2022 | Business and Management | 0 comments

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Artisanal IPA beer exportation from Montreal to Mexico City
Executive Summary
Why is this study being carried out? Which country/region will be examined? Why have these countries/region(s) been chosen? What methodology is being used?
Environmental Analysis
Political Environment: Mention the level of government intervention in business, foreign trade policy, political stability, corruption, tax policies, governmental priorities, and government business subsidies.
Economic Environment: Mention inflation rates, growth rates, currency exchange rates, disposable income, wealth & income distribution.
Legal Environment: Mention laws that indirectly impact business operations and hiring, such as discrimination laws, employment laws, education & training laws, consumer protection laws, intellectual property laws, data privacy laws, product safety laws.
Trade Relations: Mention tariffs, foreign competition regulation, FDI inflows and outflows with the domestic country, government relations.
Socio-Cultural Environment: Mention the population size and growth, marital status, immigration and emigration, age, wealth, social classes, family structures, education, lifestyles, attitudes, opinions, cultural values, social norms, trending topics and activities, buying habits, ethical concerns, Hofstede and Trompenaars dimensions of culture.
Other Aspects: For the artisanal beer industry in Mexico mention the technological environment, natural environment (sustainability), local infrastructure, and labour market.
Industry description and outlook
State of Industry: Is the artisanal beer industry growing or declining in Mexico? How big is the industry? What life stage is it at? Are there any trends? What are the future forecasts?
Barriers to entry: What are the potential pitfalls of entering the Mexican market? What is the cost of entry – is it prohibitively high, or can anyone enter?
The window of opportunity (timing): Does the company’s entry into the market rely on any time sensitive element? Examples include time-sensitive technology, seasonality, or anything that requires a fast go-to-market strategy.
Is it important to get in early to take advantage? Why?
If nothing is time-sensitive, why is this the perfect time to bring the IPA Artisanal beer to Mexico?
Competitive Analysis
Direct competitors: What other companies are offering similar products and services? What companies are the potential customers currently buying from?
Indirect competitors: What other companies are offering a different type of product that offers a similar value proposition?
Competitor strengths and weaknesses: What is the competition good at? Where do they fall behind?
Operation feasibility
Operational Capacity: What key activities and resources are needed to enter each market? Are there differences or challenges in certain markets? Are certain markets easier to operate in? Does your company have the required resources?
Human Resources: What type of skills will the staff require and are there people with these skills in the markets? Will you need to hire or use existing staff? Compare and contrast employment challenges or opportunities in each market.
Suppliers and Partners: Are the key partners and suppliers required to operate available in each market? Do you have these relationships or do you need to establish new ones?
Regulations: Are any licenses, documents, permits, or other compliance required based on the political/legal environments of each country? Is it difficult or easy to obtain them? Do you already have them?
Financial viability
Preliminary Revenue Model: What revenue model(s) would be used for each market? Which one(s) stand to generate higher revenues and/or profits?
Preliminary Budget: What costs are likely to come up in this international expansion?
Reiterate the key findings and clearly state specifically why Mexico is the most attractive for the company. Remember, by this stage, you should be able to recommend a specific area that will become the target for your strategic plan.

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