All the developed and developing countries are becoming highly advanced in terms of technology in the modern days. Every individual in today’s time have mobile phone, which they use for internet surfing for which, many of them uses wireless router. The Linksys is planning to enter the Colombian market, which is why this report presents a PESTEL analysis of the country and offers market entry mode and target market suited for business success.

PESTEL Analysis of Colombia

PESTEL analysis tool is used by the business organizations to understand the market environment that helps them determining advantages and challenges they might face in the while operating in the market (Song, Sun and Jin 2017). The environmental factors mentioned in the PESTEL model can modify and affect the operation undertaken by the organization. Colombia is known for its diversified ecosystem ranging from tropical rainforest to perpetual snowfalls in the Andes Mountains makes the country rich for its natural resources. Moreover, the clear energy diversification developed by the country is also beneficial for the businesses start their venture in the country. The energy resources in Colombia include hydroelectric, wind and solar power and bio-fuel. Hence, it will be advantageous for Linksys to start their venture in Colombia (Colombiaemb.Org. 2017). U.S. has significant contribution in initiating this clean energy project. Above 150 companies have invested more than $11 million in the project. The private sector spent nearly $1million. Moreover, the goal of the project is to produce approximately 30% of the country’s power through renewable sources by 2020 (Tetratech.Com. 2017).

However, the heavy rainfall in the country can cause serious issue to operate as it causes soil erosion. The erosion sometimes disrupts the inland transportation of the country (Colombiaemb.Org. 2017; Globaltrade.Net. 2017).

The pollution index of Colombia reflects high threat in the case of air pollution compared to other types of pollutions (Iamat.Org  2017). Colombia introduced their new law 1333 of 2009 on July 2009 that provides a framework for supporting environmental sustainability. It supports in enforcement of environmental law and penalties for violation. This law further safeguards the endangered species (Bdlaw.Com. 2017).

Market Entry Mode

Though other factors can reflect possible positive outcome in the Colombian market, environment can play both advantageous and disadvantageous role for the companies planning to extend their business in the country. The diversified clean energy will prove to be advantageous for the company for foreign direct investment. However, the soil erosion and heavy rainfall can cause serious trouble in operating within the Colombian boundaries. Hence, considering the environmental factors, it will be wise to choose exporting as the entry mode strategy which can potentially reduce the risk factors operating in the market. The company will then be able to supply their products to the market without a headache of managing the product in the country (Iberglobal.Com 2017).

Recommendation on Targeting and Positioning

Depending on the environmental factor of PESTLE analysis report, it can be concluded that heavy rainfall and soil erosion is the major environmental problem that possess threat to the company. These issues can potentially hamper the transportation system of the country. However, the both rural and urban societies are technologically advanced which creates the demand of the product Linksys will be selling (Qian and Qian 2017). Hence, it will be wise to deal with the retailers and make their product in both the rural and urban market with low-end pricing. Low pricing is due to the purchase power of the rural population as they suffers for irreversible loss from the soil erosion.

Conclusion

It is possible to conclude from the above discussion that the Exporting in Colombia of Linksys will be profitable at the current scenario to generate maximum revenue targeting the young generation of the society.

References

Bdlaw.Com. 2017. “COLOMBIA HIGHLIGHTS: Environmental And Natural Resources Law, Attorneys, Beveridge & Diamond”. https://www.bdlaw.com/news-699.html.

Colombiaemb.Org. 2017. “Energy & Environment | Embassy Of Colombia”. https://www.colombiaemb.org/node/1330.

Globaltrade.Net. 2017.  “Doing Business In Colombia”. https://www.globaltrade.net/f/business/text/Colombia/Business-Environment-Doing-Business-in-Colombia.html.

Iamat.Org  2017. “IAMAT | Colombia | Air Pollution”. https://www.iamat.org/country/colombia/risk/air-pollution.

Qian, Yi, and Yi Qian. 2017. “Joyoung Soymilk Maker: Segmentation, Targeting, and Positioning.” Kellogg School of Management Cases : 1-4.

Song, Jinbo, Yan Sun, and Lulu Jin. 2017. “PESTEL analysis of the development of the waste-to-energy incineration industry in China.” Renewable and Sustainable Energy Reviews 80: 276-289.

Tetratech.Com. 2017. “Clean Energy Services In Colombia”. https://www.tetratech.com/en/projects/clean-energy-services-in-colombia.

Tradingeconomics.Com. 2017. “Colombia GDP 1960-2017” https://tradingeconomics.com/colombia/gdp.