Walmart Export Business Plan for South African Smartphone Market (Essay Sample)

Walmart Export Business Plan for South African Smartphone Market Name Institutional Affiliation Course and Code Instructor’s Name Date Due Executive Summary Walmart's export business plan for the South African smartphone market allows it to tap into one of Africa's most promising consumer markets. South Africa is the most industrialized economy in Africa, with a total population of 56.72 million people, an attractive climate for global investments and trade, and a well-developed telecommunications sector. South Africa also has a large and well-developed infrastructure, an extensive road and rail network, and a well-developed legal system. The cultural diversity of South Africa also presents an ideal market for Walmart's export business plan. Consumer attitudes toward smartphones in South Africa are very positive, and South Africans are willing to spend considerable money on smartphones. Walmart's export business plan should focus on targeting the consumer market in South Africa by marketing to the large and growing middle class. Walmart should also focus on providing high-quality products at competitive prices to appeal to consumers in South Africa. This export business plan is expected to be successful and will provide Walmart with a great opportunity to tap into the South African smartphone market. Table of Contents TOC \o "1-3" \h \z \u 1.0Introduction PAGEREF _Toc120944477 \h 42.0 Purpose of the Report PAGEREF _Toc120944478 \h 53.0 Situational Analysis PAGEREF _Toc120944479 \h 54.0 Cultural Overview PAGEREF _Toc120944480 \h 65.0 Consumer Attitudes Towards Smartphones PAGEREF _Toc120944481 \h 76.0 Educational Levels PAGEREF _Toc120944482 \h 77.0 Languages PAGEREF _Toc120944483 \h 88.0 Political Environment PAGEREF _Toc120944484 \h 89.0 Export Marketing Plan Key Specifications PAGEREF _Toc120944485 \h 910.0 Economic Development PAGEREF _Toc120944486 \h 911.0 Purchasing Power PAGEREF _Toc120944487 \h 912.0 Infrastructure PAGEREF _Toc120944488 \h 1013.0 Conclusion PAGEREF _Toc120944489 \h 10References PAGEREF _Toc120944490 \h 11 1 Introduction The recent partnership between Walmart and the leading smartphone manufacturers, Nokia, Apple, and Samsung, allows Walmart to tap into emerging markets in developing economies. One such interesting market prospect in South Africa. This country allows Walmart to tap into one of the most promising smartphone consumer markets. The allure of this market should be understood within the framework of the bigger African continent. With greater smartphone adoption rates than in most other nations in the area, South Africa is one of the countries in sub-Saharan Africa that has been one of the most aggressive users of mobile technology (O'Dea, 2022). According to a survey conducted by Pew Research in 2018, it was discovered that 51% of people in South Africa possess smartphones, while an additional 40% own a mobile phone that is not very sophisticated. It has been determined that South Africa has 46.9 million smartphone subscriptions. This figure considers consumers with more than one mobile device (GeoPoll n.d.). The number of people in South Africa who own smartphones is increasing rapidly, which has increased the number of messaging, transportation, streaming, and other types of smartphone applications. Despite the high smartphone usage rates, South Africa is plagued by high data charges. These high costs have led to demonstrations and heated rivalry amongst the country's top mobile network carriers, including MTN and Vodacom. It has been shown that the prices of using data services in South Africa are much higher than those found in other countries in sub-Saharan Africa, such as Kenya, Nigeria, and Ghana. The Competition Commission published a study in December 2019 that emphasized the pricing differences across nations. The research also noted that consumers with lower incomes are compelled to purchase smaller data packages owing to cost, which limits their possibilities. The fact that most mobile users in South Africa use their mobile phones as their primary method to access the internet means that the prohibitively high data prices continue to be a problem for many people. GeoPoll surveyed 400 people from South Africa utilizing a mobile web connection to understand better how South Africans use their phones, what features and apps they use the most frequently, and how much they spend each month on mobile services. 2.0 Purpose of the Report This plan I purposely written to allow the Walmart to seamlessly enter and adapt to the South African smartphone market. Additionally, this business plan will be used to lobby the board of directors and other shareholders to recognize the feasibility of the proposed export business. Further, Walmart's export business plan for the South African smartphone market allows it to tap into one of Africa's most promising consumer markets thus expanding the company’s consumer base and consequently improving revenues. Finally, the purpose of writing this plan also incorporates the possibility of allowing the company to foresee any potential challenges as it plans venturing into this highly lucrative market. 3.0 Situational Analysis With an estimated total population of 56.72 million people, South Africa has the largest industrialized economy in Africa. The nation is blessed with abundant natural resources and favorable international business and investment conditions. South Africa is a democratic nation with robust institutions, a secure currency, and an economy that is thriving and expanding. In 2018, the overall value of South Africa's imports was estimated to be $151.7 billion US dollars, according to a study compiled by the International Trade Centre. This puts South Africa in the position of Africa's third biggest importer. In addition, South Africa's telecommunications and communications industries are both sizable and well-developed, making the country an appealing market for international businesses to target. The ultimate consumers of today, including young people, see their mobile phones as an important component of their life and consider it a must. It has been determined that younger generations are more open than older generations to the adoption of new technologies. Consequently, those aged 18 to 30, active on the mobile platform have the greatest worldwide mobile phone use rates. However, it still needs to be more obvious to what extent customers will be prepared to embrace mobile marketing and how involved they want to be in these efforts. Many customers now consider the mobile phone an indispensable piece of technology; they keep it on their person at all times and check it at most of the establishments they go to. The mobile phone, for the customer, is not only an individual private equipment designed to keep connected with colleagues as well as members of the family, but it is also an addition to their personality and uniqueness. 4.0 Cultural Overview South Africa is a suitable target for Walmart's international expansion strategy due to the country's rich cultural variety. South Africa is a nation made up of people of many different ethnic groups, cultures, and languages. English, Afrikaans, Sotho, Xhosa, and Zulu are some languages spoken here, along with a broad range of others. Additionally, there is a strong religious presence, with Christianity constituting the vast majority of adherents. There are adherents of faiths outside Christianity and Buddhism, including Islam, Hinduism, and Judaism. The people's cultural customs and religious beliefs also vary greatly due to the high degree of cultural diversity. Primary sectors, which include businesses such as mining that involve the extraction and manufacturing of raw materials, have been the traditional backbone of South Africa's economy for most of the country's history. Primary sectors include mining. However, for the last several decades, there has been a structural change in which the tertiary sector, sometimes known as the service sector, has gradually come to dominate the economy. This industry encompasses both wholesale and retail commerce, in addition to the tourist industry. In recent years, South Africa has been moving toward a knowledge-based economy, with a greater emphasis on e-commerce, technological advancement, and financial services. 5.0 Consumer Attitudes Towards Smartphones The general public in South Africa has overwhelmingly favorable opinions toward smartphones. Based on the findings of a study carried out by Deloitte, residents of South Africa had the highest likelihood (79%) of owning a smartphone out of all African nations (Masiu & Chukwuere, 2018). This suggests a significant demand for smartphones in the South African market. In addition, South Africans are prepared to spend a significant amount of money on cell phones, as shown by the fact that South Africa has the highest average expenditure on smartphones (US$331) in all of Africa. This suggests a sizable demand for cell phones in South Africa and that Walmart is positioned to provide this need, given its strategy for expanding its export business. Mobile phones are seen as a route for marketing by businesses, in contrast to the fact that people purchase mobile phones to enhance their personal and professional lives. These two very distinct points of view mean that marketers should ensure that the regulations governing mobile phone marketing are not obtrusive to influence the adoption of mobile phone marketing among customers positively. Even if mobile marketing is a relatively simpler and more cost-effective approach to reaching customers, this does not necessarily mean that consumers are eager to receive marketing alerts and offers on their phones. A thorough grasp of why customers are ready to accept mobile marketing and how they are willing to accept it is of assistance in building effective mobile marketing campaigns. 6.0 Educational Levels The adult literacy r...