Executive Summary
The paper identifies computer as the export product to Kenya. It begins with a clear purpose of developing the export business plan which is to guide the initial stages of export. A clear description of computers follows. Furthermore, the paper gives a trade history of Kenya and identifies the nature of the cultural environment. It is essential to explore the cultural climate to have an overview of various factors that may influence the reception of computers. Additionally, the political environment is covered. Kenya has a devolved government. The political system allows foreign investors to enjoy the same advantages as the local people. Also, the purchasing power and infrastructure have been surveyed. Consideration of the diverse aspects gives detailed information on the export marketing plan.
Export Business Plan
Introduction
The selected product is computer and the country to export to is Kenya. In the contemporary world, technology has been developing. Many states have increased the use of computers both for personal use and for business purposes. Consequently, the demand for computers has grown tremendously. Again, the leading computer manufacturer is found in the U.S. According to Das (2015), ‘Hewlett-Packard (HP) is a leading American multinational computer system manufacturer in the world.’ Apple Inc which is a multinational company is found in America. It adds to the number of computers that the U.S exports.
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Kenya is an appropriate target for the computer export from U.S. Kenya is a developing country that is embracing advanced technology at a high rate. Also, Kenya is expanding access and adoption of Information Communication Technology (ICT). Consequently, the government has reduced taxes on computer importation. Kenya is a primary U.S trade partner which makes it a feasible target for computers.
Purpose
The purpose of the export business plan is to have a strategic plan of entering an international market. ‘It acts as a guide during the initial stages of growth’ (Delany, 2014). Overseas markets require a selective market entry strategy. Aspects such as the goals of a company guide in selecting the market strategy to consider using. Other factors like competition are essential to consider. The high competition calls for the best competitive approach to keep up with the competition to penetrate a new market. Least risky strategies are appealing as they reduce the cost associated with a particular plan.
Furthermore, an export business plan helps to identify the target market. A target market is a group of customers that a business has identified as its potential customers. It is essential to identify the target population to design effective marketing procedures. Also, it is an important aspect that guides the design of products. For example in computers, many individuals prefer slim and light computers. Thin and light computers can easily be transported. However, they are costly compared to the desktop computers. Individuals prefer personal computers for their small size and capabilities which make them feasible to use. Therefore, the target population for personal computers would be individual people, unlike organizations.
Additionally, an export business plan outlines the management. Proactive and organized management is necessary for a successful overseas company. High-quality products and broader market translate to good performance. However, that is not guaranteed with poor management. Experts with skills in international business processes should be incorporated in the management.
Moreover, an export business plans explain the product or services being offered. A detailed description of a product gives customers an overview of the product that helps them to make rational decisions. Product description provides further details on the advantages of a product which acts as a marketing plan itself. Therefore, an export business plan gives firms an opportunity to describe their products.
Situational Analysis
A Computer is an electronic device that manipulates data. There are different types of computers like Desktop and laptop. The physical structure is known as hardware while the set of instruction that direct a computer is referred to as software. Computers are easy to use and require training to acquire necessary skills. People and organizations prefer to use computers in an organization since they can store large data sets which can easily be retrieved. More important is that teachers have a positive attitude towards the introduction of computers in the education sector in Kenya.
Kenya Trade History
Kenya colonization in 1895 saw the introduction of political authority. Colonial economic policy aimed at making its colonies to supply raw materials and provide a market for their products. The resulting exchange relations operated at both internal and external level. Later after the abolition of slave trade. Barter trade was introduced which was an exchange of goods for other goods (Ochieng’, 2002). As development continued, paper money was introduced, and the Kenya shilling came into operation. Currently, trade has dramatically developed with import and export of goods.
Cultural Overview
Social structure. Social media usage has become rampant in Kenya. Communication has been made easy through platforms like Facebook and Twitter. Interaction like holding meetings through Skype can enable reception of computers in Kenya. Computers will not only be used for business, but for social purposes. Internal trade developed from external trade and both were intended to serve the capitalist.
Consumer attitude towards the product . According to Bulivar (2018), there is a difference in attitude towards computers between the male and female students. The study suggests that compared to the females, males have a more positive attitude towards computers. Therefore, education planners need to take into consideration the difference in attitudes when introducing technology in the education system.
Education levels . Free secondary education has added to the pool of educated individuals in Kenya. Many people have the capability and ability to comprehend instructions. For example, recent reports indicate that Kenya has a large number of young graduates from the Universities. The number is continuously increasing with the introduction of free primary and secondary education.
Political Environment
Kenya has made changes to its political system that driven sustainable economic performance. Its recent political reforms include a bicameral legislative house and an electoral body to strengthen its political structure. The August 2010 constitution introduced devolution which was a significant change towards effective governance. It has enhanced accountability and delivery of services at local levels.
Kenya has recently improved the environment for foreign direct investment (FDI). Foreign investors can know enjoy equal treatment as local investors. The government does not have policies or restrictions regarding geographic regions that investors should invest. Instead, it encourages investment that contribute towards employment. However, it has imposed ‘local content requirement’ on foreign investment.
Export Marketing Plan
Long and short-term goals. The export business plan will have both short-term and long-term goals. Short term goals like making sales and profit will be at the core of the plan. The business plan will include other short-term goals specifying its targets like good customer service goals. Long-term goals determine the level of success in business. The market acquisition will be the ultimate long-term goal. The business plan will seek to have an aggressive strategic plan that will enable computer exports to be competitive in the market.
Characteristics of an ideal target market. The target population will be the young people with capability and ability to use computers together with organizations. Young population will form the wider market since they use computers in their studies especially those in colleges and university. An organization that uses computers to store data and runs their business will form the other part of the target population. The market screening will be essential in locating the target population.
Economic Development
Kenya has a labor act that provides for minimum wages. The labor act gives general employment conditions in addition to wages. Minimum wage restrictions enable workers to get fair pay for the work done. Trade unions ensure that their employers exploit workers. Decent pay for workers has improved their income leading to increased purchasing power.
The National government has invested in infrastructure. It is seeking to expand infrastructure to allow trade opportunities with the rest of the world (Ndemo & Weiss, 2016). For example, the state government has put concerted efforts in improving Information Communication Technology. ICT infrastructure will allow access to broadband within walking distance. With improved ICT infrastructure, demand for products like computers will rise. Computer exportation to Kenya will be a viable market opportunity.
Summary
The purpose of the export business plan is to have a concise description of computers and to guide the initial stages of the export plan. Computer exportation to Kenya is feasible. The U.S is a leading country in the production of computers and other electronics. Kenya, on the other hand, is at the face of technology advancement which makes it a better state to target. Consumers have a positive attitude towards computers that is enhanced through high education levels. It means that people can read and understand computer instructions. The political environment is enabling. For example, importation of new computers attracts small charges which make it enabling. With an increasing ICT infrastructure, the demand for computers is likely to rise. In future, there will be high demand for computers. The export business plan aims at market acquisition to expand its market base as its long-term goal. Therefore, a feasible export business plan has been developed.
References
Buliva, N. (2018). Teachers’ attitudes towards the utility of computers in education in Kenya. African Educational Research Journal.
Das, S. (2015). Computer companies- Top 10 computer manufacturing companies in the world. Electronics and You. Retrieved 28/4/2018 fro m http://www.electronicsandyou.com/blog/computer-companies-top-10-computer-manufacturing-companies-in-the-world.html
Delaney, L. J. (2014). Exporting essentials: Selling products and services to the world successfully .
Ndemo, B., & Weiss, T. (2016). Digital Kenya: An Entrepreneurial Revolution in the Making . London: Palgrave Macmillan UK.
Ochieng', W. R. (2002). Historical studies and social change in western Kenya: Essays in memory of Professor Gideon S. Were . Nairobi: East African Educational Publishers.
