Market Factors
The United Kingdom
The United Kingdom would make the most attractive market to Talk Box based on the factors of development. It is more developed than South Africa and has better access to international markets.
Political stability- The United Kingdom experiences political stability because of their democratic laws. This favors the TMT market because there are no disruptions (Kolios, & Read, 2013) .
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Stronger international relations- The United Kingdom has stronger relationship with countries that manufacture technological equipment especially China, this is an important market factor especially for the TMT market.
The United Kingdom has a highly developed economy that favors investments- This is due to its high GDP giving the TMT businesses in the country a higher chance of obtaining credit ("United Kingdom - Market Overview | export.gov", 2019) .
It provides an excellent environment for the growth of businesses- The TMC market is likely to prosper in the United Kingdom as most companies and individuals rely on software and technology for their daily businesses.
There is also a strong TMT niche in the United Kingdom- This comes as a result of the rising demand of cyber security and the need for data protection.
South Africa
South Africa could qualify as an appropriate market because of the huge population, ensuring readily available skills ("CREATING MARKETS IN SOUTH AFRICA", 2019) .
South Africa has the largest economy in Africa- This growth is attributed to the rising middle class economy and this has fueled the growth of infrastructures and technology.
The increased population on South Africa had contributed to the availability o skills. This is a market actor considering that skills are a necessity in the TMT market.
Access and availability of infrastructure- Unlike most countries, South Africa is well established and has dependable infrastructure and utilities such as electricity. This encourages investments and the growth of businesses.
Entry modes
Direct export- This is one entry mode that could be used by Talk Box to penetrate the market. This is convenient for most people but the disadvantage arises when paying custom duty, thus making this method costly.
Partnership- Partnership is a cost effective market entry mode. Its main disadvantage is conflicts between the owners.
Market entry Risks
The United Kingdom
Terrorism
Low productivity
High indebtedness
South Africa
Corruption
Lack of infrastructure
Political instability
References
CREATING MARKETS IN SOUTH AFRICA. (2019). Retrieved 23 January 2021, from https://www.ifc.org/wps/wcm/connect/b0d223b7-25cb-47ed-9cf1-1d8c4685f5ea/201910-CPSD-South-Africa-EN.pdf?MOD=AJPERES&CVID=mTvKUbu
Kolios, A., & Read, G. (2013). A political, economic, social, technology, legal and environmental (PESTLE) approach for risk identification of the tidal industry in the United Kingdom. Energies , 6 (10), 5023-5045.
United Kingdom - Market Overview | export.gov. (2019). Retrieved 23 January 2021, from https://www.export.gov/article?series=a0pt0000000PAv5AAG&type=Country_Commercial__kav
