James Inc Company Analysis
The export plan for this project is James Inc. The company plans to export new and used sedans to Mexico. This export action plan is necessary to gain the idea of the target market before exporting these vehicles and entering the market. This plan helps the company understand the market and comply with Mexico’s entry regulations, but it helps the company focus on the mission of maintaining revenue in this new market.
The export business plan outlines James’ goal to determine some steps necessary to achieve the goal. It will explain the purpose of the company to Mexican investors and potential customers. This plan will help mainly to grasp the progress of companies. As a result, management can conduct transactions and refer to this plan when making business decisions.
Globalization has been open to many companies around the world. Companies benefit from trade with other countries to compete in the global market with constant change to generate income. James Incorporated has developed bicycle export plans at many Major Metropolitan stores in Mexico and finally develops its representative office nationwide. Bicycle sales figures doubled each year, which is consistent with the maximum number of registered vehicles crowded with Mexico infrastructure. These bicycles provide high quality and cheap products that will be an alternative to urban mobility. Due to differences in wages and education in the country, inexpensive bicycles can be provided and received by needy people (Campbell, 2015).
James Incorporated plans to begin exporting bicycles in the first year to gradually expand market share and compete in the Mexican bicycle market. This company will work on a small scale to avoid rising costs and entry barriers. James expects to increase his market share and capital for five years and start working wider to manage his place nationwide. Production of the bicycle of the country will soon become an option, but it has not been studied at present. As Mexico’s economy improves and the country’s infrastructure improves, bicycles will soon become major vehicles in big cities.
Mexico is a growing city, and soon it will be necessary to replace compact cars (Eckstein, 2014). Mexico will gradually become the new center of automobile production in the world; James will import the bicycle and offset the effect of the car, I want to make the travel to the inland of the city more citizen among citizens. These new bicycles offer amenities such as lights, horns, and helmets. It is a welcome addition to the Mexican who disregards traffic and uses the country’s busy mass transit. The country will enjoy a prosperous economy that can facilitate this import. Bicycles provide consumers with a healthy way of traveling without costly car ownership. It will ultimately help the country stop its dependence on oil and will help those who cannot afford a car.
This export plan begins with the analysis of the bicycle manufactured by James Inc. To Mexico. James specializes in traditional custom bikes. These bicycles will be the primary means of transport compared to vehicles, but the major cities of the country will help to expand traffic congestion problems between cars and mass transit divisions (Morsi, Whealan-George, & Clevenger, 2018). There are many things such as a closed trunk for carrying valuables and basic things necessary for transporting on bicycles. The bicycle is equipped with a very powerful aluminum frame but it is lighter in weight, so it is easy to transport. It can also offer a custom color with or without fenders to make a statement about consumer fashion. Construction of new roads and expansion of existing infrastructure do not solve the problem, but adding passenger options for transit helps to alleviate traffic congestion.
Mexico consisted of many great civilizations long before Spain came to the land. The United States is fighting for independence and becoming a state, but in doing so, it has a great influence on Mexican people. After the independence of Mexico, the country has undergone some revolution to improve the country’s infrastructure and economy and increase the commercial value of the country. On the main road, all the possible routes for transporting people are always mixed, such as taxis, buses and personal vehicles. This situation is exacerbated worldwide including Mexico (Fehrenbach, 2014).
Mexico’s Culture Overview
The culture of Mexico relies heavily on Spain and indigenous peoples. For many years, for television and the Internet, the culture of Mexico saw several changes in what they take for their foundation. In large cities, the culture of Mexico is very similar to the Western culture because it is made up of people with different fields and lifestyles, with education, politics, transportation, progress and so on. In Mexico, there are no specific languages, but most of the citizens speak Spanish. Many people in Mexico believe that it is necessary to be able to move in urban areas and rural areas where it is impossible to obtain a vehicle financially (Jones & Kierzkowski, 2018).
Attitude towards Bicycles
In addition to daily movements, Mexico spends 219 hours per year. First of all, many polls suggest that it is top among major cities has no mobility. Mexicans believe that without the other options, the state of current mobility gets worse. There is a great need for change and bicycles can eventually offer some relief against growing problems. Over the years Mexico has increased the import of bicycles adequately. It is a better indication of the newly recognized movement speed among the Mexican people.
The Mexican education system is a corrupt system that damages the economy. Only 45 percent of the high school in Mexico completed the secondary school’s graduate. Due to poverty, the literacy rate across the country is very low; it is surprising. The government spends more than 5 percent of GDP on education, but in reality, this does not explain the positive outcome of education (Fehrenbach, 2014).
Language is a special issue if he wants to import or export to other countries. James may face classification problems due to language barriers in the US and Mexico. Many products made in the United States often produce labels in English and Spanish so that these bicycles can be easily executed.
The Mexican political system is a Republican presidential system similar in some respects to the political system of the United States, but there are some differences. Mexico possesses democratic elections for the election of many officials. The government has three levels of government and divides authority among government departments. The elected officials in Mexico cannot go out in the second turn, and there is the possibility that there is no incentive to make a significant contribution to the country where it is possible to choose the second term ultimately.
The Mexican government prohibits misleading and incorrect descriptions. All information provided to consumers is free from false expressions and should not mislead. The company posts accurate information on the label. For any false information, the company is prime responsible for solving the problem with the Mexican government.
The Export Marketing Plan
James Incorporated has conducted marketing examinations in Mexico to find the perfect target market. The choice was to investigate potential customers, explore existing competitions and catalog them. In the Mexican market, sales increased by 150 percent from 2015to 2017, indicating that James has a bicycle export market to Mexico (Feenstra, 2015).
Short Term and Long Term Goals
The short-term goal of James is to export the bicycle to a Mexican department store and offer a great chance to its people for buying a bicycle. The store has minimum barriers, and they are a well-known store, rather than to open James in its store. James can get a reputation among consumers in Mexico and at stores that go into large megacities so that they can earn income to open more stores. The long-term goal is the opening of James Retailers, Inc. dedicated to many bicycle options that consumers can purchase and open in many areas of the country.
Characteristics of the market
Mexico is 15th largest economy around the globe with its GDP growth is $ 1.1 billion. As the industrial sector continues to grow, James will develop several manufacturing operations closer to large urban areas in rural Mexico in the future.
Mexico is 15th largest economy around the globe. Many people think that it is a third world country with many crimes and poverty, but many people who have returned Mexico to their economic opportunities, last year the economy of Mexico grew 2.5 percent, And it is expected to expand from 2 percent to 3 percent in 2017. The Mexican economy is growing eventually in parallel with the US economic outlook. Mexico shifts from inverse to extensive development but suffers from class, education, and regional inequality (Eckstein, 2014).
In Mexico, there are two salary zones called Zone A and B, and in most countries, Zone A consists of areas close to urban areas, and Zone B consists of more rural areas. Mexico raised the minimum wage in 2015, but it is much lower than in the United States. There is a clear gap between wealth and wages among Mexican citizens. It is a shocking concept compared to the exceptional purchasing power of the country.
Purchasing power is the currency value that indicates the quantity of goods or services that you can purchase. It is very important as inflation means reducing the number of items or services that can be purchased. The Mexican purchasing power growth means that the country’s economy is being strengthened.
Mexico is a second country where infrastructure is ailing. Mexico needs to improve existing infrastructure in 64 out of 148 countries. Latin America does not provide sufficient infrastructure resources (Conybeare, 2017). In Mexico, many bars, roads, and airports that accommodate citizens far from urban areas have been improved, but the high-quality structures outside the cities are decreasing. Modernizing this infrastructure helps the country find a route that is acceptable to those who can buy a bicycle as a vehicle.
Mexico is gradually becoming the economic power of many first countries in the world. Along with the growth and congestion in the center of Mexico City, alternative means of transportation adopted in other important cities in this region will be adopted. Mexicans are increasingly attracted to the idea of buying and using bicycles for mobility that affects the increase in bicycle purchases. James wants to export bicycles to major cities in Mexico to relax its dependence on congested public transport and crowded road infrastructure. These bikes are designed for those who can and cannot afford inexpensive cars instead of mobility without the influence of a car that could cause a beautiful country in Mexico
Campbell, D. P. (2015). Export Behavior: What Do We Know Now? In Proceedings of the 1985 Academy of Marketing Science (AMS) Annual Conference (pp. 124–128). Springer.
Conybeare, J. A. (2017). United States foreign economic policy and the international capital markets: the case of capital export countries, 1963-1974 (Vol. 31). Routledge.
Eckstein, S. E. (2014). The poverty of revolution: The state and the urban poor in Mexico. Princeton University Press.
Feenstra, R. C. (2015). Advanced international trade: theory and evidence. Princeton university press.
Fehrenbach, T. R. (2014). Fire & blood: a history of Mexico. Open Road Media.
Jones, R. W., & Kierzkowski, H. (2018). The role of services in production and international trade: A theoretical framework. World Scientific Book Chapters, 233–253.
Morsi, O. E., Whealan-George, K. A., & Clevenger, A. D. (2018). Assessment and Comparison of Aviation Manufacturing Industries throughout Mexico and Brazil. International Journal of Aviation, Aeronautics, and Aerospace, 5(1), 4.