Market Analysis Summary
Mexico City’s business community will be the primary market for our company. We will attempt to work with business models that attract customers and sign contracts. The business size can be relatively small because the cost per month is only $1,000, but services can be scaled up to meet the needs of huge clients due to the focus and expertise of the business.
Internet connectivity in Mexico, in comparison with the U.S., is currently low, but interest is growing. Though far behind the major industrial countries, Mexico maintains one of the fastest growth rates on the Internet with thousands of users and thousands of WWW sites. Mexican WWW sites have been growing at the rate of 200-300 per month this year. CompuServe Mexico, the largest commercial Internet service provider in Mexico has 30,000 subscribers, while Spin Internet has 28,000 Mexican members. Microsoft Mexico, a division of Microsoft’s recently-launched online service named Microsoft Network, will charge $4.95 per month (about one half of CompuServe’s $9.95 per month rate) and will offer local telephone access in Mexico City, Guadalajara, Monterrey, and three other cities. The service will be English-only and U.S.-oriented for at least the first six months, but will eventually include local content.
Many companies in Mexico City currently have Internet access and more are realizing the importance of presence on the Web in order to attract international business. For this reason, our Market Analysis table predicts rapid growth amongst potential small businesses and marketing managers for medium-sized businesses to grow in-line with the growth of Internet usage.
We will try to work with other more established marketing companies, giving up some of the margin in order to get access to more clients more quickly.
We will need to make a decision on pricing, whether to keep rates at an attractive sign-up rate or focus on the more successful clients and raise rates.
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Small Business Start-up Entrepreneurs||100%||475||950||1,900||3,800||7,600||100.00%|
|Medium Business Marketing Managers||80%||684||1,231||2,216||3,989||7,180||80.00%|
|Established Marketing Companies||20%||97||116||139||167||200||19.83%|