Abstract
Nigeria is selected for this analysis because it is an emerging economy in the African continent. The selected product stands a chance to transform the experiences of more people in Nigeria. Before doing the intended business in Nigeria, it is appropriate to consider the demographics, environment, culture, politics, and banking system. The aspects and attributes presented in this document define the Nigerian market. The analysis concludes by arguing that the decision to market the targeted motorcycles in Nigeria will pay off because of the existing opportunities and favorable business environments.
Introduction
Managers and entrepreneurs should analyze the unique attributes of different markets before launching their products. The acquired information is then used to make appropriate marketing decisions (Okonjo-Iweala, 2012). The analysis equips the marketer with adequate data and information that can be used to design the most appropriate business models. The information presented below can be used to establish the appropriateness (or inappropriateness) of introducing the intended motorcycles in the Nigerian market.
Demographics
Nigeria’s demographics have changed significantly within the past five decades. Since 1960, the country’s population has increased due to high birth rates. The latest census of 2010 indicated that the country had around 159 million citizens (Okonjo-Iweala, 2012). The majority of citizens in the country are aged between 15 and 64 years. The percentage of this group is around 54 (African Development Bank Group, 2015). Individuals aged between 1 and 14 years of age amount to 44 percent (Okonjo-Iweala, 2012). The number of males is more or less similar to that of females in the country. Experts believe strongly that the country’s population will increase to 180 million by the year 2018 (African Development Bank Group, 2015).
The life expectancy in the country is estimated to be 52 years (Okonjo-Iweala, 2012). Literacy levels in the country are acceptable. This is the case because the current rate stands at 78.6 percent. The majority of people in Nigeria are either Muslims or Christians. Other common religions in the country include Judaism, African Traditional Religion, Bahai, and the Ogboni Fraternity (Okonjo-Iweala, 2012).
Some of the evils or social rots associated with this country include organized crime, prostitution, and drug trafficking. Some of the trafficked drugs include heroin and bhang. Corruption has remained extremely high in this sub-Saharan country. This is the case because “Nigeria was ranked 136 out of 168 nations by Transparency International in 2015” (African Development Bank Group, 2015, p. 5).
Nigerian Culture: Impact on Doing Business
Nigeria is a country characterized by over one thousand ethnic groups. The major tribes include the Yoruba, the Igbo, the Hausa, and the Fulani (Joseph, 2014). Many people are usually sensitive to the other cultural groups. More often than not, the people appear “to be having a heated argument when they are having a friendly discussion” (Joseph, 2014, p. 67). In urban regions and cities, many people embrace suits and stylish dresses. The people also have unique traditional dresses that are worn during specific ceremonies and occasions. Women, for instance, wear headscarves and long robes (Joseph, 2014).
As mentioned earlier, the country has diverse languages. The official language in this nation is English. The use of English has led to cohesion and linguistic unity than in Nigeria. Pidgin English has emerged as a common language in Nigeria. The people of this country are observed to be relaxed especially when interacting with foreigners. The citizens embrace traditional roles and family responsibilities. Most of the people in the country are Muslims or Christians. The country has been characterized by terrorist groups such as Boko Haram (African Development Bank Group, 2015). The common transportation methods in the country include buses and private cars. In the recent past, lightweight vehicles and motorcycles have become common in the country.
These cultural attributes will definitely influence the manner in which a person does business in the country. Handshakes should be taken seriously. Physical contact is usually discouraged between women and men. Business cards are usually exchanged in the country. Foreigners should respect local traditional and cultural practices. Business meetings should be characterized by social interactions. Haggling and bargaining are unique processes embraced whenever engaging in business negotiations (Okonjo-Iweala, 2012). The businesspeople should be aware of these attributes and formulate the most appropriate models.
Banking System
Before independence, the colonial government established several banks in an attempt to meet its financial needs. The system has expanded in order to support the financial needs of every citizen and business organization. The country’s banking system currently has “over 800 micro-finance banks and 21 commercial banks” (Joseph, 2014, p. 92). The Central Bank of Nigeria (CBN) is tasked with supervising and regulating the activities undertaken by different financial institutions. The CBN also monitors to roles of different organizations such as Primary Mortgage Institutions (PMIs), Finance Companies (FCs), and Bureau-de-Change (BDCs). The central bank outlines and implements powerful policies that monitor the activities of different operators (African Development Bank Group, 2015). The main goal is to ensure the operators comply with the provided guidelines for credit, monetary, and foreign exchange practices.
Trade Environment
The federal government has been implementing powerful measures through the Ministry of Trade and Investment. The ministry has been focusing on the best measures to promote security, form trade agreements with different African countries, and lift custom duties (Joseph, 2014). The domestic policy in the country has optimized both regional and domestic trade processes and strategy. The country has been investing heavily on technology, infrastructure, and innovation (Lawrence et al., 2016).
The government has been focusing on the best regulations and processes to support both local and international businesses. However, there are various challenges that affect many people who do business in the country. For instance, cases of corruption are common because many leaders and politicians ask for bribes. Basically, the trade environment has the potential to support business practices in the country.
Political and Legal Systems
Iwunze (2013) indicates that Nigeria is “a federal republic and uses a presidential system of governance” (p. 38). The government has been separated in to three branches. These include “the executive, the judiciary, and the legislature” (Joseph, 2014, p. 29). The country’s military rule ended after the general elections of the year 1999. In May the same year, a new Constitution was enacted to govern the rights and liberties of the people. The constitution is known to support Nigeria as a secular state (Joseph, 2014). The country is divided into 36 states. The states are usually headed by governors. Elections in the country are usually held after every four years. Many critics believe strongly that “the decision to divide the nation into many districts is something wasteful and ineffective” (Lawrence et al., 2016, p. 25).
The legal system in this nation is based on both Islamic and statutory laws. The country has both state and federal courts that apply English laws. The local courts in the country are mandated to apply customary laws (Iwunze, 2013). The implementation and use of Sharia (Islamic) law has been criticized for imposition harsh penalties in the country. The government is known to dictate or control media agencies in the country. The Federal Radio Corporation of Nigeria is managed and owned by the national government. The foreign relations implemented in this nation embrace the importance of African affairs and global nonalignment (Bienen, 2013). Economic cooperation is taken seriously in order to promote trade.
Marketing
The field of marketing is taken seriously in this country. The country has promoted both regional and global collaborations in order to promote international trade. The country has been known to export a wide range of agricultural products, crude oil, and minerals (Lawrence et al., 2016). Consumer goods, automobiles, garments, and electronics are imported from different nations across the world (Iwunze, 2013). Locally, citizens and businesspeople are empowered to develop powerful models that can result in profitable marketing processes. Companies doing business in the country can find it easier to benefit from the existing marketing opportunities.
Political Environment: Strategic Alliances
Since 1999, Nigeria has been characterized by a stable political environment. Elections are held after every four years (Bienen, 2013). Transition of power has been observed to take place smoothly in this country. This has not been the case in some of the nations in Africa. The country has 36 states that are led by elected governors. This strategy creates the best environment for many people who want to do business in the country (Bienen, 2013). The country has been implementing powerful policies and laws to deal with a wide range of problems such as insecurity and terrorism.
As mentioned earlier, Nigeria has established strategic alliances with different nations across the world. For example, the government focuses on African cooperation and integration. This strategy has made it easier for the country to establish strategic alliances with different countries such as Ghana, South Africa, and Botswana. The country has gone further to establish bilateral trade alliances with nations such as China, the United Kingdom, and the United States (Lawrence et al., 2016). These strategic alliances continue to support the country’s economy.
Government and Foreign Business
From 2000, the nation has been establishing a powerful foreign policy that revolves around African cooperation. The country has gone ahead to emphasize economic and political development. Within the past decade, Nigeria has embraced the idea of tariff harmonization. It has been an active player in a number of unions. The country supports the Economic Community of West African States. Nigeria also promotes the activities of the New Partnership for Africa’s Development (NPAD). The purpose of these two unions is to promote economic development. This goal is achieved by eliminating trade barriers (Iwunze, 2013). Consequently, the number of foreign investors in the nation has increased significantly since 2004 (Iwunze, 2013).
The country has gone further to support different relationships and organizations such as the African Union (AU), African Development Bank (ADB), and Commonwealth (Okonjo-Iweala, 2012). Nigeria has also signed a number of agreements and treaties that have made it a major player in the global economy. These associations have made it easier for foreign corporations to invest in the country.
Personal Analysis: Making the Best Decision
The above analysis reveals a number of facts and attributes about Nigeria as a destination for doing international business. After analyzing the above issues carefully, it should be agreed that the decision to do business in Nigeria by marketing the targeted motorcycles is a worthwhile investment (Okonjo-Iweala, 2012). Moving on with the decision and opportunity will definitely pay off and make the company successful. Several arguments can be put forward to support the decision.
The first argument is that the country’s economy has been growing steadily within the past fifteen years. This development has empowered many people to take up a wide range of jobs. Infrastructure has been taken seriously by the government within the past decade. However, the development has mainly been recorded in different urban areas. The people living in rural areas still remain underserved (Joseph, 2014). The proposed motorcycles will change the experiences of these people and make it easier for them to realize their economic objectives.
The country offers numerous opportunities to support foreign direct investment (FDI). This is the case because the environment is conducive for business performance. The banking and legal systems are regulated appropriately. The federal government has promoted international businesses by reducing tariffs and constructing infrastructure to support local businesses (Okonjo-Iweala, 2012). These attributes will make the investment sustainable and profitable.
The current political climate is stable. This kind of stability has been recorded for the past sixteen years. The environment will support any form of foreign investment. The cultural aspects experienced in Nigeria have the potential to support business performance. English is widely spoken in the country (Okonjo-Iweala, 2012). Most of the citizens in the nation embrace superior products that can meet their needs. The move to market superior motorcycles will therefore deliver positive results.
The federal government has established a number of trade agreements with different nations across the globe. This move has made it easier for many foreign investors to do business in the country. This is also the same case for many Nigerians who want to do business in other foreign nations. The government has also focused on the issue of trade barriers (Bienen, 2013). This is the case because the government understands clearly that cooperation is one of the best strategies that can result in economic growth. Consequently, the country has become one of the fastest growing economies in Sub-Saharan Africa (Joseph, 2014). These opportunities show conclusively that the proposed motorcycles will be admired by more Nigerians.
Concluding Remarks
The factors experienced in Nigeria offer the best opportunity for marketing the targeted motorcycles. Infrastructure development has also been taken seriously. However, only a small percentage of the population can afford vehicles. This means that the remaining percentage will not be able to purchase private cars. The agreeable fact is that the individuals must commute from one place to another in order to achieve their economic goals (Joseph, 2014).
Within the past five years, motorcycles have also become a common transportation method in the country. These factors therefore create a wonderful opportunity for the proposed product. More Nigerians will therefore be willing to support the business model of a company that markets superior motorcycles. In conclusion, the decision to move forward with this opportunity in the targeted country will definitely pay off and eventually make the company profitable.
References
African Development Bank Group. (2015). Economic report on Nigeria. Web.
Bienen, H. (2013). Political conflict and economic change in Nigeria. New York, NY: Routledge.
Iwunze, C. (2013). The political constraints on Nigerian economic development since independence: Crime, corruption, and political turbulence. Houston, TX: Strategic Book Publishing and Rights Company.
Joseph, R. (2014). Democracy and prebendal politics in Nigeria. New York, NY: Cambridge University Press.
Lawrence, A., Neidhardt, M., Aylward, C., Biscaye, P., Anderson, L., & Reynolds, T. (2016). Economic growth and poverty in Nigeria. EPAR, 1(1), 1-36. Web.
Okonjo-Iweala, N. (2012). Reforming the unreformable: Lessons from Nigeria. Cambridge, MA: The MIT Press.