Question

You work for an MNE that makes and markets cellular telephones. Senior managers want to begin selling the phones in Latin America. To pursue a transnational strategy, management wants to minimize adaptation of the phones. They have asked you for a briefing.

Your Task: Focusing on three Latin American countries, prepare a brief report that identifies the common features of Latin American markets that management should consider when developing the cell phones the firm will sell there. For example, what language should be used in the cell phones? What pricing should management use? You may wish to consult the country commercial guides, Country Insights, and market research reports available through globalEDGE™. In addition, the U.S. Department of Commerce (www.export.gov) is a useful resource.

Answer 1

Multinational organisation that is manufacturing mobile phones should follow strict external analysis before investing in Latin America. Company should focus on the basic features as well as middle segment devices as Latin American countries are are more lean towards middle segment other than being forecast on top segment of the mobile phone industry. Cost effective mobile phones are widely prepared by Latin American people in the respective environment and increases its adaptability if any company follows the same strategy Corporation.

The countries have extensive capacity of increasing the overall profits for any organisation that is operating in expecting industry. Building a structure of cost benefit differentiation technique and increasing the chances of multi factor approach that would be needed.

For better understanding of the market environment I have carried out and analysis on Mexico for different external threats available for entering the specific market segment

Five forces analysis on business environment of Mexico.

Political factors

From the political landscape Mexico has been a very critical location. It has faced major changes in its past as well as the changes have contributed in its current state of investment from different foreign countries. Mexico has verified availability of different businesses which requires further investment but the policy is and political instability affects the overall foreign investment in Mexico.

Economic factors

Mexico's economy is directly dependent on the America's economy this dependency on American economy has created a threat of vulnerable dependency on American economy. United States is 29% contributor of the total economy of Mexico which makes it more dependent on United States for revenue generation. Mexico is facing declining external demand which is resulting in reduced economic offence affecting the foreign direct investment in the country.

Social factors

Social demographics of Mexico has been changed a lot over the years. Mexico is not developing better education system for its citizens which is attracting new foreign investment as well as it is also creating positive impact on the external factors regarding investment in Mexico.

Technological factors

Mexico has been totally depending on United States of America for most of its technological advancements. This type of approach has reduced the overall availability of technological advancements for mexico. This is specific approach regarding technological advancement has reduced the foreign investment for Mexico and limited its foreign direct Investments.

Legal factors

Mexico has been fighting various issues in its structure. Their inequalities with America and aggressive nature of American side has been one of the hottest issues involved in the mexican society. These legal factors threaten the foreign direct investment of different countries and reduce the availability of trust as legal instability can cause huge damage on the foreign investment in Mexico.

By keeping in mind about the above specific factors we can easily increase contact vinashak countries and increased adaptability of mobile phone investment and for selling better products at the similar markets at a huge scale.