Introduction
Solar power is increasingly becoming an essential part of the world's energy mix. Both small and large-scale solar power is changing lives and disrupting traditional models. Our product is aimed at meeting the storage needs of customers with solar systems. The batteries can effectively store the energy generated by solar power in households. Our firm is at the forefront of energy storage technologies, producing high-quality batteries. The company helps in ensuring optimal and reliable operation of electrical grids with high renewable energy penetration. Besides, our firm has the experience and global services infrastructure essential for providing customers with quality solar system storage solutions. The product being sold does not emit any CO2 to the atmosphere, contributing significantly to the achievement of stringent environmental targets.
The country identified for exporting our battery systems to is Puerto Rico. Puerto Rico is an unincorporated territory of the United States of America and is located in the northeastern Caribbean, east of the Dominican Republic. The island is only 100 miles long and 35 miles wide, making it the smallest island of the Greater Antilles.
Delegate your assignment to our experts and they will do the rest.
Currently, Puerto Rico is still recovering from the disastrous effects of Hurricane Maria that swept over the island in 2017. Several months after the disaster that ravaged the island, millions of Puerto Ricans are still without reliable power. This has prompted the public to consider investing in solar energy seriously. Therefore, Puerto Rico is a potential market for the battery systems as they will effectively complement the solar systems.
Situational Analysis
The battery systems produced by the company will provide a practical storage solution for solar systems. The product was developed in response to the need for safe, reliable, cost-effective energy system, as well as the capability to store energy for use when it is needed. It is important to realize that the vetting of the current solar storage systems over time has resulted in the identification of opportunities for improvement. Subsequently, the industry has responded with changes in the composition and structure of batteries. This has paved the way for new solar storage solutions that will help with the transition to renewable energy.
The technology used in lead-acid batteries has been there for decades. However, lead-acid batteries have relatively short lifespans, as well as lower capacity. This means that lots of lead-acid batteries are needed to meet demand. Besides, this type of batteries is slow to charge and is not friendly to the environment. The setbacks associated with lead-acid batteries led to the development of lithium-ion batteries. It is the most popular source of energy storage today. However, lithium-ion batteries struggle to meet eventual large scale, cross season demands. As a result, redox flow batteries were developed. These batteries are made with a non-flammable electrolyte solution. Redox flow batteries provide a longer cycle than its predecessors, and they have longer lifespans of up to 25 years. Throughout their lifespan, redox flow batteries do not exhibit any degradation in capacity.
To ensure quality, durability, and reliability, the batteries we sell are redox flow batteries. This advanced technology will ensure that the needs of the customer are met more effectively. As such, the product we offer to the market is of good quality at a competitive price. The product will meet the energy needs of the customers more effectively and sustainably. Puerto Rico has been identified as a potential market for the quality batteries. The batteries will help in meeting the energy needs of Puerto Ricans who are increasingly embracing solar power.
History of Puerto Rico
In 1493, Christopher Columbus arrived at Puerto Rico. Columbus originally called the island San Juan Bautista. However, the gold in the river saw the island renamed Puerto Rico, Spanish for "rich port." The capital city took the name San Juan instead. Later, Puerto Rico became a Spanish colony, becoming a crucial military outpost. Puerto Rico started to produce sugar cane, cattle, tobacco, and coffee. This led to the importation of slaves from Africa. Consequently, Puerto Rican bloodlines and culture evolved through a blending of Spanish, African, indigenous Taino and Carib Indian races that lived on the island ( Wagenheim & de Wagenheim, 2008 ). Currently, several Puerto Rican towns retain their Taino names, such as Mayaguez, Utuado, and Caguas.
Over the years, the French, Dutch, and English made numerous unsuccessful attempts to conquer the island. As a result, the Spanish constructed the many ramparts and forts still found on the island to guard against such incursions. Puerto Rico remained an important overseas province of Spain until when the United States forces invaded the island with a landing at Guanica, during the Spanish-American war. Spain ceded Puerto Rico, along with the Philippines, Cuba, and Guam, to the United States under the treaty of Paris of 1898 ( Wagenheim & de Wagenheim, 2008 ). As such, the turn of the century saw Puerto Rico under the control of the United States. During this time, Puerto Rico relied on it sugar crop. However, an ambitious industrialization effort, known as Operation Bootstrap, was underway by the middle of the century.
Puerto Rico has for long been known for cheap labor and attractive laws. As such, the cheap labor and attractive tax law in Puerto Rico attracted American corporations and entrepreneurs. As a result, the Puerto Rican economy soon became firmly grounded in manufacturing and tourism. Currently, Puerto Rico remains a tourist destination and manufacturing center. The island produces high-tech equipment, along with various other top-selling American pharmaceuticals. Pharmaceuticals are Puerto Rico’s main exports.
In 1917, the Puerto Ricans received United States citizenship, becoming a United States commonwealth in 1952. However, the issue of Puerto Rico’s political status is still under constant debate, with some in favor of statehood, others independence, and still others the persistence of commonwealth status.
Cultural Overview
Puerto Rican culture is colorful. It has unique characteristics that distinguish it from any other. The people of Puerto Rico represent a cultural and racial mix. The Spaniards took Taino Indian women as brides to populate the country. Later on, as labor was increasingly required to maintain crops and build roads, African slaves were imported. The Chinese, Germans, Italians, and even Lebanese later arrived and settled in Puerto Rico. This demonstrates the fact that the island’s culture is indeed a mix of many cultures.
Puerto Ricans have a strong cultural preference for owning their own houses. As such, housing developments are the norm ( Morris, 1995 ). This implies that many people own homes in Puerto Rico. This presents an opportunity for the solar storage solutions because many people may need to install solar systems in their homes, considering the power challenge in the country.
A good family and education are more important than wealth according to Puerto Ricans. Therefore, more Puerto Ricans have accessed good education. For instance, credentialism is on the rise in Puerto Rico, with a college degree required for most positions, as well as upward mobility. The rates of high school and college graduation have significantly increased in recent decades. Puerto Ricans have access to professional training in medicine, law, engineering and other fields. As such, most Puerto Ricans are literate and can read the instructions on the appropriate use of our battery systems. The main languages spoken in Puerto Rico are English and Spanish. Therefore, English and Spanish will be used to develop user manuals for our battery systems.
Political Environment
The official head of state in Puerto Rico is the president of the United States of America. However, the Puerto Ricans cannot vote in the United States' presidential elections. A local governor is normally elected every four years in Puerto Rico through universal suffrage. Besides, an elected resident commissioner represents Puerto Rico in the United States Congress. However, he has no vote. Puerto Rico has its constitution, and a bicameral legislature is elected every four years. Furthermore, minority part representation is guaranteed in both chambers regardless of election outcome.
Puerto Rico's international trade has grown over the decades. It was even improved recently with the federal lifting of the John's Act, which restricted Puerto Ricans to only trading with American merchant ships. The move by Trump was prompted by the devastating effects of Hurricane Maria that left much of the island running out of critical supplies. Although Trump's administration had delayed in waiving the restrictive Act, the humanitarian crisis in Puerto Rico saw it lifted. The Puerto Rican officials had for a long time despised the law, arguing that it made their food and goods much more expensive than on the mainland. Although the US shipping industry likes that law because it benefits them, Puerto Rico has been disadvantaged by the law. Therefore, the lifting of John’s Act will benefit us because we can use any shipping company to supply our battery systems to Puerto Rico. Additionally, the lifting of the law will ensure that we can choose the shipping company with the most competitive rates.
The governor of Puerto Rico has encouraged Puerto Ricans to take solar power seriously, particularly after the devastating effects of Hurricane Maria. The Hurricane destroyed the country’s power system. The industries and households have not electricity for a long time because it took significantly longer to reconnect industries and homes to the grid. Therefore, investment in solar power in Puerto Rico has immense political goodwill. As such, our exports will gain a lot from the country's focus on solar energy. If more Puerto Ricans invest in solar power, the demand for our battery systems will be high. The energy experts, legislators, as well as solar companies have argued that Puerto Rico has a tremendous opportunity to rebuild its failed grid to be greener and more resilient (Cheslow, 2018). Therefore, we will take advantage of this favorable sociopolitical environment to sell more battery systems to Puerto Ricans.
Export Marketing Plan
Puerto Rico presents a great market for our battery systems. Given the potentially high demand for solar system products in the country, our projected exports are high. During the first six months, we are targeting to export 5 million units of battery systems, with 2 million units per month for the next 18 months. We estimate the demand for solar storage systems will increase significantly in the country because of the current electricity problems in the country. Currently, many households do not have access to reliable power, and solar power presents a great opportunity for Puerto Ricans. With aggressive marketing, we can make significant sales and meet the short-term target of six months.
Our long-term export plan involved establishing marketing and distribution center across all major cities in Puerto Rico. We aim to achieve sales of 10 million units per year in 5 years-time. This can be achieved because the country's solar power industry is likely to experience exponential growth in the coming years, given the immense political goodwill (Cheslow, 2018). The presence of Tesla in the country means that significant advances will be made as far as solar energy development is concerned.
Economic Development
There are ongoing economic difficulties in Puerto Rico, which have significantly contributed to high rates of unemployment. Although Puerto Rico receives federal aid, it does not qualify for most welfare programs. This means that the government is the main welfare provider. Despite the challenges, the country has managed to maintain high standards of living. However, the cost of living is steep, with many Puerto Ricans accumulating high levels of debt ( Adkisson & Mohammed, 2014 ). Additionally, the government is the main provider of employment. This means that there is a high supply of labor in Puerto Rico which can benefit our company.
The Hurricane destroyed most of the infrastructures. As such, there is a need for rebuilding of roads, bridges and communication infrastructure. Although this may present some challenges, the gains are likely to be much greater.
Summary
In conclusion, Puerto Rico presents a rich market for our solar storage systems. The country is still suffering from the devastating effects of Hurricane Maria, which rendered the island powerless. The unreliable grid system in the country has led the Puerto Ricans to shift their focus to solar power generation. As such, the demand for solar storage systems is more likely to be high. The lifting of the John's Act will provide us with more supply channels as we will not be limited to American ships for transporting the solar storage systems. Additionally, solar power generation has received immense political goodwill in Puerto Rico. This makes Puerto Rico the perfect export destination for our quality products.
References
Adkisson, R. V., & Mohammed, M. (2014). Tax structure and state economic growth during the Great Recession. The Social Science Journal , 51 (1), 79-89.
Cheslow, D. (January 5, 2018). Hurricanes blew away Puerto Rico's power grid. Now solar power is rising to fill the void. USA Today . https://www.usatoday.com/story/news/world/2018/01/05/hurricanes-blew-away-puerto-ricos-power-grid-now-solar-power-rising-fill-void/1006617001/
Morris, N. (1995). Puerto Rico: Culture, politics, and identity . Praeger/Greenwood.
Phillips, A. (September 18, 2017). Trump just lifted the Jones Act for Puerto Rico. Here’s what that does. The Washington Post , https://www.washingtonpost.com/news/the-fix/wp/2017/09/27/all-about-the-jones-act-an-obscure-shipping-law-thats-stalling-puerto-ricos-recovery/?noredirect=on&utm_term=.ec3bdd8b7fdd
Wagenheim, K., & de Wagenheim, O. J. (Eds.). (2008). The Puerto Ricans: a documentary history . Markus Wiener Publishers.
