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Market Screening: Review and Analysis

The rate at which the use of computers in Africa is growing so fast.

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There is an increase in the need for computers plus their accessories in countries like Kenya.

Educational institutions, the public, and the private sectors are all undergoing computerization. There dire need for computers to enhance efficiency and speed of processing information in African countries is not short-term. This means that the need is going to last for many years. The company has to capitalize on this opportunity and introduce other new accessories which have not seen this market.

A survey of the markets in Africa also reveals a situation of excitement with new computer accessories. This would help to further sustain the need for the products in the market. Bearing in mind that there is a need for computer products in the market, it means that very little would be spent to make people aware of the importance of the products.

It would be very easy to maneuver with computer accessories since there is a ready market and people are looking for excellent products from Americans. In terms of need potential, there is a high potential for succeeding in sales of computer accessories due to the existing demand for information and internet facilities and services.

Import restrictions

There are very few restrictions on imported products in the market.

The company would enjoy this existing environment and bring in large amounts of stocks to the market to satisfy the needs of the consumers who are looking for quality products at affordable rates.

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Duty on importation of computer parts and accessories has been reduced substantially to allow the development of ICT infrastructure in countries like Kenya and this provides a better venue in which foreign companies can bring in their computer parts and accessories to boost the ever fast-growing sector in the market.

This market in its history has been experiencing an increment in the number of imports over the last ten years. This should be taken as an advantage by the company before the sector becomes flooded with time.

There is adequate infrastructure to handle imports in the market for instance the ports and the cargo handling companies. This would further facilitate the importation process and hence make the market a better place for the American company to invest. It is clear that the country has been obtaining computer accessories from other countries like China and Japan and has no intention of stopping but this should not stop an American company from getting into the market.

Few import restrictions would mean therefore that the costs of operating this business would also be reduced to some substantial extent.

Price controls

The price of products in the target market is a self-regulatory affair.

The government does not control the prices of products in the target market. It is the forces of demand and supply that regulate the price of commodities.

The company would enjoy price stability depending on the demand and supply of computer accessories in the market.

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This can be of a disadvantage if the market becomes flooded with imported products and there is no other alternative to price control.

More sales shall be realized when the market is still in more need of computer accessories. Therefore it would be important to capitalize on the opportunity before many competitors get into the market.

An analysis of prices of imported products in the country reveals that the prices do not fluctuate so much. This can be a major advantage for the company to move in because there seems to be stability in prices.

Price control in the market is therefore not an issue that can raise concern as such and would not be a hindrance in the achievement of the market targets.

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