Opportunities For Motorcycle Company In South Africa Tourism Essay

The following concern program analyzes the chances for Our Company in South Africa and presents a selling program to guarantee a successful entry in this new market. The program begins with an debut to the South African market. In instance of an international concern it is indispensable for a company to carry on an environmental analysis of the market before get downing its selling procedure. Deep Analysis for such state purposes to analyze the macro environmental factors that could hold an impact on the concern explicitly the Political factors, the Economic factors, the Socio-cultural factors and the Technological factors.

The program besides states the grounds for taking South Africa as a possible market. It conducts a SWOT Analysis to tactically measure our determination. It besides conducts a market analysis to make a better apprehension of the relevant market forces in South Africa enabling us to explicate an effectual selling scheme to guarantee the success of Our Company. The program so discusses the selling program of the company. The program recommends that in the hereafter the company should take at retail enlargement in South Africa and see the constitution of a fix centre. At last, the program concludes that the Company should sharply seek client feedback to understand the changing gustatory sensations and penchants of different market sections thereby enabling the company to plan effectual selling activities taking to its hereafter success.

Introduction:

The assigned propose of this concern program is analyzing the possibility to set up and run a new bike salesroom and service centre in South Africa. We will concentrate on all facet, turn outing the profitableness of the undertaking. With reexamining the comparative concern facets such like Marketing.

Motorcycles go a alone transit mean in the terminal of the twenty-century and beginning of this century. It is integrated with the human privateness nature for everybody in this clip. Furthermore, the societal every bit good as the economic factors are driving the people to carry through their personal demands. On the other manus, transit is one of the chief indispensable things of these demands. That gives the enforcement to every individual to take the advantage of such escapade. to boot, In this few latest old ages a lull of immature work forces ‘s have bike because this avocation became most favourite hopes in South Africa and we found that it ‘s grow every old ages.

As we are unwraping in inside informations that the bikes markets in South Africa is a really comfortable market and has its noticeable advantages. As the undertaking is holding a good chance to successes, but the usage of a high grade of purchase additions fiscal hazard of non being able to run into debt service payments as they come due. Because of the cardinal function played by the debt funding in most development undertakings, the fiscal hazards are frequently significant. The fiscal costs become the major transporting cost for any investing undertaking.

Conversely this concern program is promoting to come in this market with taking on consideration the selling comments that have been explained on item.

Our company will sell several types of Motorcycle. The company has many options to clients. We are mending and serving, besides selling trim portion and accoutrements. We have exceptional staff for Mechanical, Electrical, and Electronic and spray picture. We besides have bikes lease and auto bringing to any manner in the South Africa.

Our company is positioned to make full the turning demand for bike demanded by both a turning figure of new singles and concern bing demanding of the merchandise in South Africa. Our company offers bikes on both gross revenues and rental footing. Our company will be unfastened, clean, well-merchandised, and attractive. It will be a bike “ centre ” where reader of all abilities will experience welcome and comfy. The clients of our company will want to use clip at that place in add-on will wish to come back over once more and for certain once more. & lt ;[ 1 ]& gt ;

It is recommended that Our Company should come in the South African market with all of its bike ranges. The chief bikes should dwell of three types providing to the different income groups. The costly bikes for the upper income group can be marketed by puting more accent on wellness issues and for leisure. These bikes can besides be promoted amongst assorted circuit companies and bike leasing companies that peculiarly target the tourers. The bikes for the in-between income group can be marketed by puting more accent on wellness issues and environmental issues. The bikes for the lower income group can be marketed as a inexpensive manner of transit.

The mini bikes should be dwelling of bikes for different age groups and different income groups. The specialised mountain bikes and rushing bikes should largely aim bikes ‘ readers, adolescents and tourers puting accent on velocity, manner and wellness. The company should besides see selling bike trim parts and accoutrements in the South African market as at nowadays there are fewer providers selling good quality trim parts and accoutrements in the market. Our company is come ining a market that has a figure of rivals but the market besides has a great potency for growing and increased demand.

The company would be required to take the followers in order to guarantee success in the hereafter:

Well-designed and effectual selling activities:

Our Company should analyze the market and form assorted selling activities to pull more and more clients.

Wide distribution web:

In the hereafter Our Company should besides see spread outing their web to all the nine states of South Africa.

Make a strong trade name image:

The Company should take at making a trade name image for a one-stop store which is capable of carry throughing all the motorbiking demands of clients ( broad scope of bikes, bike trim parts and accoutrements ) . The trade name should stand for a company fabrication good quality bikes at low-cost monetary values.

Relationships with corporate clients:

The Company should intercede and set up relationships with motorcycling and racing nines and tour companies that offer bike lease services to tourers.

Promote cycling as a athletics:

The Company should dynamically take part in all mountain motorcycling and rushing events and besides see patronizing some of these events to make trade name consciousness.

Continuous larning about the market and people:

The Company should ever do an attempt to research the market and understand the gustatory sensations and penchants of different market sections thereby enabling the company to plan effectual selling activities taking to its hereafter success.

Recruit knowing staff:

The Company should besides take at enrolling knowing staff that has some experience on bikes and a good attitude. They can so develop these staff to heighten their proficient cognition and better their client service accomplishments.

Provide good client service:

The Company should concentrate on supplying good client service as this would delight clients and do clients loyal towards the company thereby enabling them to derive an border over its rivals.

Offer value-added services:

The Company should concentrate its attempts on supplying value added services to its clients in order to pull more clients and differentiate themselves from the competition.

Socio-Cultural Analysis:

South Africa is besides called the ‘Rainbow Nation ‘ ; this term was used as a metaphor by President Nelson Mandela to mean the cultural diverseness of the state. The state consists of many cultural groups with the Black Africans being in bulk ( 79 % ) , followed by Whites ( 9.6 % ) , colored ( 8.9 % ) , and Indian/Asian ( 2.5 % ) . & lt ;[ 2 ]& gt ; South Africa besides faces the job of unequal distribution of wealth and income. Since bulk of the population is below the poorness line, the company can advance bikes ( basic type ) as a major manner of transit. Consequently, Our Company can market different types of bikes in this market providing to different income groups.

Ethical issues are non attach toing to a corporation ‘s operation ; they are neither attractive, nor simply nomenclature of high-quality purpose. in its topographic point, they are reasonable tools of disposal, considered to confine the influence of societal or even society morality furthermore lay it to ‘good ‘ corporate usage. Used selectively, Ethical issues assist corporations in deploying power so as to models of control that will supply effectual responses to different types of altering related status. & lt ;[ 3 ]& gt ;

Our company expects all employees to run into the highest criterions of legal and ethical behavior. Our company Ethical issues established a perfect criterion of proper action, attitudes, and linguistic communication used in carry oning our mundane activities, designed to protect against any odiousness or visual aspect of improperness by a company ‘s employee.

Natural Resources Analysis:

South Africa, officially known as the Republic of South Africa, is positioned on the southern slope of the African continent. & lt ;[ 4 ]& gt ; It has a coastline of merely about 2,798 kilometers with the Atlantic Ocean on its West and the Indian Ocean on its South and E. It portions boundary lines with Namibia, Zimbabwe, Botswana, Swaziland and Mozambique. Lesotho is an independent enclave located in the southeast portion of South Africa. South Africa is one of the members of the Commonwealth of Nations.

South Africa is divided into nine states which are The Eastern Cape, The Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, The Northern Cape, North West and The Western Cape. Each of these states has their ain legislative assembly and executive council.

The population of the state during mid-2007 was estimated at 47.9 million harmonizing to Statistics South Africa ( Stats SA ) . The currency of the state is South African Rand ( ZAR ) . South Africa is the individual state in the universe to hold three capital metropoliss dwelling of Pretoria ( the administrative capital ) , Cape Town ( the legislative capital ) in add-on to Bloemfontein ( the judicial capital ) . & lt ;[ 5 ]& gt ; On the other manus, South Africa is a culturally and racially diverse state dwelling of many cultural groups with the Black Africans being in bulk ( 79 % ) , followed by Whites ( 9.6 % ) , colored ( 8.9 % ) , and Indian/Asian ( 2.5 % ) . South Africa is home to a batch of immigrants from different parts of the universe. The state has 11 functionary linguistic communications specifically isiXhosa, isiNdebele, Sesotho, Tshivenda, Afrikaans, Sesotho Sa Leboa, Xitsonga, English, siSwati, isiZulu and Setswana. Though, English is the most extensively understood linguistic communication and the 2nd linguistic communication of the bulk of South Africans. It is besides really of import for making concern in South Africa.

Economically, in a societal context and infrastructure-wise it is one of the most developed states in the African continent. Its early on development can be contributed to the fact that it experienced before clip in-migration from the European states chiefly due to the strategic importance of the Cape Sea Route and the state ‘s mineral wealth. At present, the state is traveling through a period of economic roar whereby its existent GDP growing for the twelvemonth 2007 was about 5 % which is the highest rate of economic growing in the past 25 old ages. & lt ;[ 6 ]& gt ;

The grounds for taking South Africa as a possible market for Our Company ‘s bikes are given below in item:

Strategic Location:

The strategic location of South Africa at the tip of the African continent makes it sooner suited for entree between Central & A ; South America and Far East & A ; South East Asia. It besides connects these markets and provides them an easy entree to the 14 member South African Development Community ( SADC ) . This geographical advantage enhances trade and investing in the state. As a consequence, South Africa would be a good topographic point for the selling of ours as it is good positioned to supply entree to assorted states and Acts of the Apostless as a gateway to Africa. & lt ;[ 7 ]& gt ;

Climate:

South Africa is usually classified as semi-arid and is known to hold a temperate clime nevertheless the clime and topography in South Africa vary harmonizing to the part. The climatic zones range from the semitropical clime in the nor’-east to the utmost desert in the Northwest to the Mediterranean conditions in the southwesterly part. South Africa gets most of its rainfall in the summer season ( mid-October to mid-February ) with Western Cape being the simply exclusion which gets most of its rainfall in the winter ( May to July ) . The mean temperatures in the interior tableland vary from about zero grades Celsius in the winter ( dark clip ) to less than 30 degree Celsius in the summer. Reasonably the coastal parts are the warmest in the winter. This contrast in temperature on the opposite sides of the state is largely due to the warm Agulhas Current on the east seashore and the cold Benguela Current on the West seashore. South Africa ‘s natural beauty and changing climatic zones make it a possible market for all types of our company peculiarly mountain bikes and rushing bikes ( for athleticss ) . & lt ;[ 8 ]& gt ;

Tourism:

On this topic we can state that South Africa is already going the purpose of choice for tourers all over the universe as it offers everything they are looking for right from scenic beauty, abundant wildlife, rich cultural heritage, first metropoliss and beautiful beaches to endless athletics and escapade experiences. & lt ;[ 9 ]& gt ; South Africa received about 8.4 million tourers in the twelvemonth 2006. Tourism is one of the cardinal economic sectors of the state ‘s economic system. The sector ‘s part to the overall GDP increased from 4.6 % in 1993 to 8.3 % in 2006 and is expected to further increase to approximately 12 % by 2014. Apart from its part to the GDP the touristry sector besides contributes to the economic system by making more and more occupations. The Tourism sector has an first-class potency for growing in the coming old ages as South Africa has been awarded the rights to host the 2010 FIFA World Cup. The roar in the touristry sector in South Africa shows increased chances for Our Company to aim both locals and the tourists. & lt ;[ 10 ]& gt ;

Economic and Socioeconomic Forces:

If we look around in South Africa we found a batch of companies which do the same type of concern are making good concern. Because these clients are from different ages it ‘s besides the biggest avocation in South Africa. & lt ;[ 11 ]& gt ;

The demand for bikes transits was addition in the last few old ages, peculiarly for case the fast nutrient and low category eating houses bringing, the bearer ‘s service, wash services, and some authoritiess ‘ governments are utilizing the bikes services for their manus ‘s messages bringing.

South Africa is a middle-income economic system with an emerging market which makes it an ideal location for Our Company to set up its concern and take advantage of the approaching chances. It is one of the most developed economic systems in the African continent and is at present sing tremendous growing. In 2006 the state experienced an economic growing of 5 % which has been the highest in the last 25 years. & lt ;[ 12 ]& gt ; The authorities has managed to convey down rising prices to a big extent with the application of effectual financial and pecuniary policies. The consumer monetary value rising prices has decreased from 9.2 % in 2002 to 4.7 % in 2006. & lt ;[ 13 ]& gt ;

Political and Legal Forces:

The political factors have been divided into four classs specifically concern environment, political environment, and legal environment and trade understandings.

Business Environment:

South Africa provides a favourable concern environment for the start-up of Our Company because of the state ‘s industrial capablenesss, sound economic policies, trade reforms, infrastructural capablenesss and fight. South Africa ‘s industrial and technological capablenesss are much above the norm of other developing states. South Africa ‘s economic system has undergone major transmutation after the political reforms of 1994 and therefore gained more stableness. The authorities is now concentrating towards accomplishing accelerated growing and development and bettering the degree of employment. Harmonizing to a study conducted by The Economist Intelligence Unit, South Africa is ranked as the 10th for the most cost effectual state for making concern ( out of 31 states ) . & lt ;[ 14 ]& gt ; This is mostly due to its exchange rate, low energy costs and labour costs. The South African authorities purposes at making a supportive environment for little, medium and micro endeavor ( SMME ) development by supplying inducements, subsidies and increased entree to finance. & lt ;[ 15 ]& gt ;

Political Environment:

South Africa is a constitutional democracy. It has a three-tier system of authorities runing at the national, provincial and local degrees whereby each has legislative and local authorization. It besides has an independent bench. It has a bicameral parliament consisting of the National Council of Provinces ( the upper house ) and the National Assembly ( the lower house ) . & lt ;[ 16 ]& gt ; The National Assembly consists of 400 seats and its members are elected for a five-year phrase on the foundation of comparative illustration whereby the figure of seats awarded to each party is in proportion to the election consequences. Whereas the National Council of Provinces consists of 90 seats out of which 10 seats are elected by the provincial legislative assemblies in order to hold one member represent each state. The major political parties of South Africa are the African National Congress ( ANC ) , the Democratic Alliance Party ( DA ) , Inkatha Freedom Party ( IFP ) , United Democratic Movement ( UDM ) , New National Party ( NNP ) and African Christian Democratic Party ( ACDP ) . The last elections were held in 2004 which was won by ANC as they got 69.7 % of the ballots followed by DA who got 12.4 % and IFP 7 % . Mr. Thabo Mbeki from the ANC is the current President of South Africa. South Africa ‘s stable political environment makes it an attractive market for Our Company to set up their concern. & lt ;[ 17 ]& gt ;

Legal Environment:

South Africa has a good developed legal model with Torahs related to revenue enhancement, trade and commercialism, investings, labour, disputes etc. The state besides has good regulated fiscal systems enabling foreign companies to merely do investings in South Africa. Harmonizing to a World Bank Report released in 2005, South Africa ranked 28th for easiness of making concern ( out of 155 states surveyed ) in front of other states like China ( ranked at 91 ) , France ( 44 ) and Spain ( 30 ) . For that ground, South Africa provides a favourable legal environment for the start-up of Our Company. & lt ;[ 18 ]& gt ;

Trade Agreements:

South Africa has ever been an active participant in the planetary trading system and has introduced a figure of trade reforms. South Africa has a free trade understanding with the European Union called the SA-EU Free Trade Agreement. It is working on the SADC Free Trade Agreement ( South African Development Community ) & lt ;[ 19 ]& gt ; which is aimed at heightening intra-regional trade and investing thereby ensuing in cognition spill-over within the part. It is besides a portion of another plan initiated by the US called the African Growth and Opportunity Act ( AGOA ) aimed at increased market entree and enhanced trade and investing between the member states and the US. South Africa is besides working towards developing trade understandings with some of the Latin American and Asiatic states. Consequently South Africa ‘s trade dealingss would enable Our Company to market its merchandises to other states thereby making increased chances for the company. & lt ;[ 20 ]& gt ;

Technological Factors

South Africa ‘s industrial and technological capablenesss are much above the norm of other developing states. The industrial sector is come oning at a really fast rate and bit by bit more utilizing capital intensive engineering in all Fieldss. South Africa boasts of its first-class research and development installations as it has played an active function in the development of new engineerings largely in the Fieldss of deep-level excavation, energy and fuels, information engineering, energy and fuels and telecommunications. & lt ;[ 21 ]& gt ; Introduction of new engineering has besides enabled companies to offer advanced merchandises to consumers and present new agencies of reaching clients ( distribution methods ) , for illustration, cyberspace banking is going bit by bit more popular among the consumers in South Africa. As a concluding point, the state has the needed technological capablenesss necessary for the smooth operation and growing of Our Company ‘s concern. & lt ;[ 22 ]& gt ;

Labor Forces Analysis:

The jobs faced by the economic system are that of unequal substructure, unemployment and unequal distribution of wealth and income. Although South Africa has the basic substructure required to make concern it still has some booby traps and requires betterment in order to be in line with the jutting growing of the economic system. In order to work out the current jobs faced by the economic system the authorities has initiated a plan called ‘Accelerated and Shared Growth Initiative for South Africa ( AsgiSA ) . & lt ;[ 23 ]& gt ;

The plan is directed towards accomplishing accelerated economic growing from an norm of 5 % per annum to about 6 % between 2010 and 2014. Through this accomplishment the authorities is besides taking to cut down poorness and unemployment by half by 2014. & lt ;[ 24 ]& gt ; The chief enterprises of ( AsgiSA ) include substructure development and creative activity of increased employment chances. The authorities is be aftering to pass about R410 billion ( South African Rand ) between 2007 and 2010 to build sufficient electricity bring forthing substructure and fix and construct ports, railroad lines, roads, seaports and grapevines. Harmonizing to the Labor Force Survey conducted by Statisticss South Africa ( Stats SA ) the unemployment rate has decreased to 23 % in the 3rd one-fourth of 2007 from 25.5 % in 2006. & lt ;[ 25 ]& gt ;

Opportunities and Menaces:

On the footing of our market study it is recommended that Our Company should come in the market with a foreign direct investing which should be a wholly owned subordinate as the South African authorities allows 100 % ownership by aliens. Te authorities charges 34 % revenue enhancements on this type of companies. On the other manus, it is non recommended for the company to set-up its ain fabrication works in South Africa because of the labour issues and current energy crisis ( electricity ) . & lt ;[ 26 ]& gt ; The company should set up their ain retail shops in South Africa whereby it imports finished merchandises into the state and takes the duty of marketing them. The Company should originally put up two shops in South Africa, one in the KwaZulu-Natal state and the other one in the Western Cape Province. It should besides set-up a selling office which would be responsible for carry oning all the selling activities in South Africa. In the hereafter the company should besides see spread outing their web to all the of import states of South Africa.

Harmonizing to a World Bank Report released in 2005, South Africa ranked 28th for easiness of making concern ( out of 155 states surveyed ) in front of other states like China ( ranked at 91 ) , France ( 44 ) and Spain ( 30 ) . & lt ;[ 27 ]& gt ; As a consequence, South Africa provides a favourable legal environment for the start-up of Our Company.

The South African market consists of a figure of local bike stores that represent both domestic and international trade names but the state lacks a retail merchant who has a broad distribution web and enhanced retail presence. For that ground, Our Company has the chance to come in the market and make full this spread. The South African market is ideal for entry as the authorities is sharply advancing trade and investing and allows 100 % company ownership by aliens ‘ thereby guaranting increased control by the caput office over the company operations, selling activities and quality of client service. & lt ;[ 28 ]& gt ;

SWOT Analysis for South Africa:

Strengths

Failings

Opportunities

Menaces

Strategic location with easy entree to assorted markets

Unequal distribution of wealth and income

Government investing in substructure development

Government needs to do attempts to cut down the incidence of poorness

Natural beauty with varied climatic zones

High rate of unemployment

2010 FIFA World Cup will heighten touristry

Health issues such as increased spread of AIDS and other diseases

Abundant mineral resources

High rate of rising prices in the economic system

Development of trade understandings with Latin America and Asiatic states as China, India etc.

Increased offense and unemployment

Emerging in-between category with turning demand

Inadequate substructure

macroeconomic policies pursued by the authorities will better the economic status

Future rise in rising prices could hold an inauspicious consequence on the economic system

Excellent distribution system ( local, domestic and international )

Poor direction and dialogue of the free trade understandings

SADC Free Trade Agreement

Increased ruddy tapism and bureaucratism

Tourism is one of the flourishing sectors

Lack of extremely skilled labour

African Growth and Opportunity Act ( AGOA ) aimed at increased entree to the US market

Import low cost merchandises from China and India

Supportive concern environment

Unstable currency

Sound fiscal and banking sector

Lack of a proper labour statute law

Political stableness

New Partnership for Africa Development ( NEPAD ) Plan

Decision:

South Africa already has the market for bikes and the people are dynamically involved motorbiking events and activities. The bike market has a possible for growing and is already sing a growing in demand. Primarily the company should do an attempt to set up themselves in the market and make a strong trade name image for themselves. In the hereafter, based on the experiences drawn from its constitution the company can see spread outing its retail presence in other parts of South Africa with the purpose of being the largest retail merchant in the state. The company should besides see set uping a fix centre in the hereafter as this would heighten its trade name image of a one-stop store for all the motorbiking demands of clients. The Company should continually do an attempt to research the market which would enable them to understand the altering market tendencies and for that ground serve the clients.

South Africa is the ideal location for Our Company due to its emerging market, strategic location, climatic conditions, political stableness etc. The state besides possesses a passion for motorbiking like no other state in the universe. Mountain motorcycling and racing are one of the favourite past-times of the people. Motorcycles are really dynamically used by the locals for a figure of out-of-door activities like traveling to the beach etc. Our Company has a great potency for success in South Africa in malice of the being of a figure of rivals. The company should be proactive in their attack in order to be able to understand rival schemes and respond to them productively. The Company should ever take at offering value-added services in order to distinguish themselves from the rivals. The Company should keenly seek client feedback to understand the changing gustatory sensations and penchants of different market sections thereby enabling the company to plan effectual selling activities taking to its hereafter success.