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Factor Endowments (+) Mexico has a good infrastructure, which makes commuting between places easy to the people

e and also there is major improvement undertaken to improve and develop road and rail networks. It is that the country have good infrastructure, as it will be easy for the people to locate and reach the store (Nations Encyclopedia 2011).

(-) The telecommunication infrastructure in Mexico is suffering from poor development due to the lack of effective competition, which resulted in a high level of market concentration (Techspot 2012). This could effect the operations of the company, as there might not be an advanced technological infrastructure that could help the company to carry on their operations in a successful way.

(+) Presence of cheap and skilled labor. The minimum wage for a skilled engineers starts from $ 2815/month (Team NAFTA 2011).

(+) An increase in consumers disposable income, as in 2012 the figure was US $825,588.6 Million compared to $799,741.9 M last year (Euro Monitor 2012). The increase in CDI could affect the household spending, as the consumers have more money to spend.

Demand Conditions (+) In 2011, Mexico became the 2nd most important market for mobile and telephony sale. Mexico (21%), Brazil (18%) and Argentina (36%).

(+) Mexico's demand on mobile and telephone usage is increasing. In 2011 there was an increase of 65% of mobile usage.

(+) There was also an increase of 33% in 2011 of the usage of mobile VAS. The mobile VAS includes entertainment, mobile banking, social networking and instant messaging. (+) The Mexican optic fiber market is expected to grow 10 times by 2015 and will be worth $3.6 billion (Prnewswire 2011). (+) The middle class in Mexico is emerging but people have not realized its there. The middle class in Mexico is between 35 to 45 million people. This means that economy is healing and the demand conditions for various product (mobile phone, cars) will increase in a yearly bases as there are more people joining the class annually (Mexico Today 2011).

Related and Supporting Industries Industry Clusters (+) The availability of three major phone manufacturers in Mexico. Zonda Telecom, Lanix and Sony-Ericsson. With the availability of phone manufacturers it would be easier to have access to phone supplies. North, Tijuana: Strong hardware manufacturing area. There is a strong trade link and partnership between San Diego in the U.S. and Tijuana. West, Guadalajara: Strong software development cluster, particular drivers/software for hardware. Center, Mexico City: Mainly software applications e.g CRM, ERP (Enterprise resource programming), business intelligence and telemarketing applications. South East, Yucatn/Merida: Administrative software applications.

Mexico's main software clusters are located in and around Mexico City and three technology parks in Monterrey and Guadalajara. Two of the three technology parks, Monterrey Technology Park and Apodaca Technology Park are located in

Monterrey. The other technology park, Guadalajara Technology Park is located in Guadalajara, Mexico's version of Silicon Valley. These four locations have the advantage of a large pool of existing technology companies, a relatively large supply of skilled personnel, good telecommunications infrastructure and tax breaks for locating in the parks.

Firm Strategy, Structure, and Rivalry (-) Mexican telecommunication market is suffering from a Monopoly. Telmex controls around 80% of the landline market and Telcel control 70% of the mobile market. The same person, Carlos Slim, owns both companies (Huffington Post 2012). (-) anti-competitive and closed

Government's Role (+) This week the Mexican Supreme Court announced that Mexico's telecom regulator COFETEL has the complete right to set the rates that phones companies charge. These actions were taken due to increase competition into the market and open the market for foreign market (Reuters 2012). This action was taken due to the OECD and pressuring the Mexican government to reform and improve laws and regulations governing the Telecom industry and give COFETE L more power.

(+) The Government of Mexico is investing a lot in education. Recently, they enrolled more than 450,000 students in full time engineering undergraduate program Vs. the 350,000 in America. This means that Mexico will benefit from an increase of high skilled labor and also they can have more complex production processes (Business Week 2011).

(-) Mexico has got a centralized structure whereas the federal government sets a minimum wage for the whole year. Employers then burden or load-up the federal minimum base wage with a wide variety of incentives and bonus. (-) A history of weak enforcements on intellectual property rights and there is a slow development in this area (Reference For Business 2011). It could affect Vodafone, as risk for being copied. Competitors could easily copy their products.

(-) The competition has been slowed down in Mexico and has been delayed by regularly capture and legal system. (+) Tax breaks for companies located in the technological cluster parks.

Chance (+) A more liberalized telecom industry (+) Development of IT infrastructure

Conclusion & Re Through analysing Porters dimond framewok, growth opppuritntes has been iditified due to regutary reforms and librilizing. The OLI helped to analyze that Vodafone is ready to enter and capapible to enter into the Mexican telecom market Recommendations The analyzation helped to identify that the Mexican telecom industry is in the growth stage. In the meanwhile they might have poor telecommunication infrastruce however improvements and developments have been undertaken with large investments from the government. Its attractive to enter the market. It is recommended that Vodafone grasp this opportunity to enter the Mexican market by a joint fenture.

Nextil would be a good company to have partnership with as their 3G tenology would reach over 20 market in Mexico by 2012 As there partners in Mexico grows and gains market share, it is recommended that Vodafone aquires the company. As they did in India >> >

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