Planning and designing a strategy for a business engages a great deal of the risks as well as resources assessment and the ways in order to counter the risks as well as effective use of the resources for achieving an important purpose. Present study deals with PESTLE analysis with attention country that is information related to Rwanda and explanation of the incentives in order to enter the Rwandan Special Economic Zone. In addition, current foreign investment to Rwanda along with motivation of ARTS for entering into Rwanda is discussed in the study with the help of Porter five forces analysis.
Being South American Firm, Taiwanese technology wants to launch a laptop product in Rwanda. The organization has olpc across the world. It has been expected that launching of the products can bring revolution in the market. In addition, the company has full liability to manufacture products in Kigali as it gets the license for that. The laptop made by Taiwanese technology steer ICT education that helps to promote the business plan for the organization. It is important to gain competitive advantages in business (Cokins 2016). Hence, the product launched by the company; Positivo BGH expects to kick-off production of the laptop. Moreover, the computer manufactured by the company has ability to increase export of the country. It was the first time for making in laptop in Rwanda, which promotes business of the organization. Local production of laptops start in Rwanda helps to increase overall perspective and help the organization to achieve its target through minimizing costs in different segments. Special economic zone and review by World Bank provide extra value to the organization. It is vital for a business organization to review CIA factbook. Hence, it is important to make proper business strategy in business through which the product of the company can be able to fulfil objective of the company. It can be achieved through analyzing the product with analyse methods like Porter’s five forces analysis and PESTLE. These analyses would be helpful to identify the risks related to the product and strength areas for the product.
|
Political factors |
1.Relationship of the country with different country is in question 2. Government stability 3. Terrorism (Peppers and Rogers 2016) |
|
Economic factors |
1.Reduced interest rates 2. Rates of inflation |
|
Social factors |
1.Increasing purchasing power 2. High-level of competition 3. High-level brand of computer |
|
Technological factors |
1. Development in the technologies 2. Investment in innovation |
|
Environmental factors |
1. Climate of the country 2. Consistent power outages |
|
Legal factors |
1. Accounting conventions issue GAAP Accounting Law 2. Foreign Corrupt Practices 3. Anti-trust law |
Table 1: PESTLE analysis
(Source: Creator by Author)
Analysis of PESTLE: The main product solution of ARTS is Titan SLI 18.4in Core i7 Notebook, which is required to analyze in order to study its feasibility and accountability in business. There are several political factors in the country in which the particular product of the company is considering the business. It can affect marketing operations of the business. Frynas and Mellahi (2015) stated that it is also important to consider the import as well as export parts and transferring the labour from one country to another. Stability of the Government has an important role to increase its sale in the market. The organization is not sure with the stability as well as uncertainty of the government; therefore, it is required to make proper price strategy in order to retain in the business with respective position. Terrorism factor can affect marketing operations of the product. Thus, it is required to be involved in precarious situation that expenses regularly.
On the other hand, rapid growth of the markets in several countries helps the organization to get chances increasing its market sales. The market is also characterized by younger population, which are more tech savvy compared to old generations (O’Brien 2015). In addition, increasing power of the demands in making high level completion is involved whether getting entry in the markets (Haines 2016). The governments of several countries are rolling out with the initiatives in order to supply cheap laptops to less privileged sections of the society. Technological factors need to follow accounting conventions of the country in which the particular organization plans to launch the product. Environmental factors have an important role in development of a product or business of the organization (Botha et al. 2014). In the present case, continuous power outages require to invest in innovation that can obtain competitive advantages in the business.
On the other hand, economic factor is one of the major factors of business. The product offers several features like Intel i7 6920HQ CPU processor and NVIDIA GeForce GTX980M graphics in SLI. The processor would assist the users to faster access of the system. In addition, the graphics card would enhance the performance of display and support high-level gaming. 32 GB DDR4 memory performs better for western business analytics market and help the users to store their requirements rapidly and easily. It also help t faster the process. Along with these, Super Raid 4 512GB solid state drive allows the users to store huge number of data in the system. Along with these, 1TB hard drive put additional advantages to the organizations. There is also 18.4in Full HD anti-glare display that enhances the display performance with big screen and bigger compared to others. Windows 10 operating system empowers the performance of the system and users can get rich performance with all new Cortana facility (Whittington 2015). Furthermore, Blu-ray writer adds ice on the cake for the users. The new product consists of Killer Gigabit LAN, Dynaudio 7.1 Audio, Bluetooth 4.2, 1x HDMI, 1x Mini Display Port, 5x USB 3.0 and 1x USB Super Port Type-C . All these facilities are provided at AUD4999 or USD3792.37, which is comparatively affordable in the range. It provides the company incentives in order to enter in the Rwandan Special Economic Zone.
Byrne and Shepherd (2015) stated that current foreign investment in Rwanda has increased for having political stability as well as measure concentrated on enhancing the business of the organization. In 2015, Rwanda has launched new investment code that aims to attract FDI in different sectors.
From the above chart, it is clearly observed that the rate of amount is increasing per year. Thus, it would be helpful for the company to invest more in new product and do operation in the country.
The CEO of ARTS has given instruction to the staffs for preparing the development as well as production of technology design. In addition, manufacturing facilities in the special economic zone of Rwandan has motivated ARTS to get entry in Rwanda. In addition, manufacturing plant for the portable computer technology provide boosts to innovate something new and entry in the market of Rwanda. There are also key players that provide incentive for Rwanda to entry in special economic zone. The regulatory authority is responsible to plan national SEZ regime and coordinating with making public agencies as well as legislations. Holding the responsibility, it is important to create entity license and permit SEZ rules as well as legislations. The present regulator of holding responsibility can bear risk and financing of the designing as well as constructing of all essential infrastructure of the organization. The operators are generally involved with private sector entity that can be licensed through the regulator with responsibility in order to carry out the management of the organization to involve in the system. The regulatory authority bear risks in the matter and act as an active role to entry in the market.
With the help of Porter’s five forces, the level of completion of ARTS can be analyzed. There are five elements of the framework such as bargaining power of suppliers, threat of substitutes, bargaining power of buyers, threat of new entrants and rivalry industry.
|
Force |
Strengths |
Comments |
|
threat of new entrants |
High |
In the present case, threat of new entrants is the upcoming models of laptops of different companies. Invention in new technologies allows others in discovering some new products with more features in cheaper prices as well (Harrison and John 2013). |
|
Bargaining power of buyers: |
Low to moderate |
The individual buyers have not any pressure on the particular product of the company. However, some large companies like HP, Sony have bargaining power for having large quantity of order |
|
Bargaining power of suppliers |
Low |
On contrary, bargaining power is lessened for loyalty of the customers (Spil et al. 2016). |
|
Threat of Substitutes |
Moderate |
There are several types of tablets and personal computers available in the market, which may substitute of the product. At present, some branded companies like Hp, Sony have wide range of products. |
|
Level of Industry Rivalry |
Low |
It is difficult for Taiwanese technology firm Alpha Response Technology Solutions to introduce a new product and increase its sales as much as possible. |
Table 1: Porters five forces for ARTS
(Source: Created by Author)
The above discussion gives an outcome that ARTS needs to make effective business strategy in order to stay in the market with respective position. Foreign direct investment plays a vital role in increasing the business value and helps the organization through sharing then business value. In addition, the company promotes their launching service by promoting child as one laptop per child. However, competitive rivalry as the presence of ARTS forces the company to launch products. Hence, the management needs to analyze all aspects and take proper actions.
Based on the numeric data, it can be recommended that the organization needs to focus on making new designs in their laptops with betters features in the productivity. In addition, keeping affordable costs would be helpful to increase profitability in the business. The company needs to concentrate on its core strengths along with keeping eye with technological advancement and requirements of the users. Hence, combination of these approaches would be useful to fulfil the organizational target of the company.
Conclusion
From the above discussion it can be concluded that developing effective business strategy is useful for a business organization to gain competitive advantages in the market and retain in the market with good position. Strategic management on a corporate level incorporates a preparation for future scopes, risks as well as trends in market. It makes the way for the organization to analyze and examine as well as execute administration in a particular manner, which is likely to achieve the set aims of the business organization.
References
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business environment: Knowledge management and knowledge management technology. Elsevier.
Byrne, O. and Shepherd, D.A., 2015. Different strokes for different folks: Entrepreneurial narratives of emotion, cognition, and making sense of business failure. Entrepreneurship Theory and Practice, 39(2), pp.375-405.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Cokins, G., 2016. Strategic business management: From planning to performance. John Wiley & Sons.
Covin, J.G., Garrett, R.P., Kuratko, D.F. and Shepherd, D.A., 2015. Value proposition evolution and the performance of internal corporate ventures. Journal of Business Venturing, 30(5), pp.749-774.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.
Haines, S., 2016. The systems thinking approach to strategic planning and management. CRC Press.
Harrison, J.S. and John, C.H.S., 2013. Foundations in strategic management. Cengage Learning.
O’Brien, J., 2015. Category management in purchasing: a strategic approach to maximize business profitability. Kogan Page Publishers.
Peppers, D. and Rogers, M., 2016. Managing Customer Experience and Relationships: A Strategic Framework. John Wiley & Sons.
Spil, T., Kijl, B. and Salmela, H., 2016, April. Digital Strategy Innovation; toward product and business model innovation to attain e-leadership. In ICMLG2016-4th International Conference on Management, Leadership and Governance: ICMLG2016 (p. 321). Academic Conferences and publishing limited.
Whittington, R., 2015. The massification of strategy. British Journal of Management, 26(S1), pp.S13-S16.
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