Rwanda Market Analysis for ARTS Product

This assignment analyzes the market potential for an ARTS product in both Rwanda and the Western market. It includes a PESTLE and Porter’s Five Forces analysis of the Rwandan market environment, highlighting its favorable conditions. The report compares production costs, labor expenses, and profit margins between the two markets. It concludes that the Rwandan market offers higher returns due to lower labor costs and recommends investing in this market.

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Introduction
The following report is an assessment of Alpha Response Technological Company venturing the
laptop market in Rwanda. Alpha response technological Company (ARTS) is a Taiwan based
technology firm and is looking forward to launching it laptops in Rwanda. Rwanda is country
located in Central East Africa. Rwanda like other developing countries is having progress in
terms of technology and society. The Rwanda laptop market is dominated by Positivo BGH who
will be the main competitors of ARTS Company. The report will assess Rwanda using PESTLE
Analysis, discuss foreign investments, and apply 5 forces analysis to show opportunities in the
Rwanda market. The report will also outline the incentives that are available when entering the
Rwanda Special Economic Zone.

PESTLE Analysis
Factor Analysis
Political Rwanda is politically stable after 1994
Genocide.
Economic Economy is managed by National Bank of
Rwanda.
90% of the population works in Agriculture
sector.
The country currency is Rwandan franc.
Per capita GDP is $2090
Rwanda has a free market economy.
Industrial sector contribute 14% of GDP while
agriculture 32%
Technological There is 4G internet connection
ICT has been incorporated in the education
system
Environment The government has designated special
economic zones for companies.
Social culture Rwanda has a population of 11262564 people
The population is young making 53% aged 16-
64 of the total population.
Rwanda is densely populated with 445
inhabitants/km
Tertiary education enrollment is 8%.
Literacy rate is at 71(those that can read and
write)
Education is provided by government through

public school to secondary level.
The society is still recovering from the 1994
genocide
Legal environment Companies need to get licenses before starting
to make laptops in Kigali
Incentives in Rwandan Special Economic Zones
The economic zones are regulated by Special Economic Zones Authority of Rwanda(SEZAR).
SEZAR works to ensure that the operations of the Special Economic Zone are in line with the
country’s infrastructure, social, and fiscal policies. The economic zone has several incentives
that are aimed at attracting foreign investment to the country. The incentives to enter Rwandan
Special Economic Zones are; first, the firm gets access to storage facilities. Second, the firm is
able to get reliable utilities. These include water, sanitation and power. Third, the economic zone
has offices that are accessible to firms operating tin the area and therefore there is no need to
construct one. The zone also offers off site and onsite roads links to main roads and the airport.
In addition, firms operating in Special Economic Zones are able to get reduced tariff and
customer duties.
Current Foreign investment in Rwanda
Rwanda economy has experienced the a high economic growth of 8.8% GDP on have for the
past 10 years. The economy has both stable exchange rate and inflation rate. The GDP growth
has been rated the highest in Africa. Rwanda was rated as the most competitive place in East
Africa to do business and third in Sub Saharan Region. The foreign investment rate is 25% of the
GDP. Currently, the country has a good business environment is facilitated by Special economic
zones. The country also has cheap labour. The government has set ICT parks are serves to equip
the young generation with ICT skills.

ARTS Motivation to enter Rwandan Market
The ARTS motivations to enter the Rwandan market are; first, the Rwandan market has cheap
manufacturing labour. This will enable the company lower it cost of production and hence be
able to offer competitive prices in the market. Secondly, the Rwandan market has tax incentives
and therefore enabling the business to operate in a more business friendly environment. Thirdly,
there is only one major competitor who the company believes they can beat in the market.
Positivo BGH is viewed as weak because they took ARTS designs. Lastly, the company
considers producing in the Rwanda because there is western emotion still in the Rwandan society
against western countries and therefore would like to buy more from locally produced laptops in
the market.
5 Forces Analysis
Forces Analysis
Threats of new entrants There are no barriers to industry entry. The
ARTS have faced with high treat of new strong
competitors entering the market (Hill,Jones,
and Schilling, 2014).
Bargaining power of customers There are many customers in the Rwandan
market and therefore customers have low
bargaining power (Jameson, 2007).
Threats of substitute Close substitutes of laptops are tablets and
other smart phone devices. These products
threat the prosperity of the laptop business.
This is because they are more portable and
affordable (Peppard, and Ward, 2016).
Powers of suppliers ARTS Company has access to many suppliers
around the world rendering it suppliers to have
low power over the company. The company
can dictate prices of it raw materials. The
Rwandan labour unions are not in solidarity to
bargain for high pay (Yunna, and Yisheng,

2014).
Industry rivalry The main competitor in the market is Positivo
BGH. The industry rivalry will be high
(Grundy, 2006).
Comparison between ARTS and Positivo Primary Product Lines
ARTS Primary line
GT80S Titan SLI 18.4in Core i7 Notebook
Positivo BGH Primary Product line
Serie FX 1000
Intel i7 6920HQ CPU Intel Core M-5Y10c
NVIDIA GeForce GTX980M graphics in SLI Incorporated Intel HD Graphic 5300
32 GB DDR4 memory 4GB
Super Raid 4 512GB Solid State Drive -
1TB hard drive 128GB
18.4in Full HD anti glare display Mini HDMI
Killer Gigabit LAN WLAN 802.11 b/g/N
Dynaudio 7.1 Audio Realtek ALC269Q
Bluetooth 4.2 -
1* HDMI Mini HDMI
1* Mini Display Port -
5*USB 3.0 2* USB 3.0
1*USB Super Port Type -C
Quantitative analysis

Rwandan Market Western Market
Price AUD 4999/ Franc 3000012.82 AUD 4999/ franc 3000012.82
Costs
Raw
materials
AUD 2020 AUD 1840
Labour AUD 560 AUD 1540
Other
expenses
AUD 1420 AUD 1020
Gross
profit
AUD 999 AUD599
Recommendations
From the analysis of this report, the Rwandan Market is favorable and has high returns compared
to western market. The company will be able to get high returns in the market. Though the initial
cost and raw material costs are high the labour is cheap. The company benefits from cheap
labour. The company should therefore invest in the Rwandan market.
Conclusion
From the report, Rwandan business environment is favorable. The Pestle and 5 forces analysis
shows that the market has an opportunity for growth. The government of Rwanda has incentives
for foreign investment that makes it easy to operate in the country. There are few competitors
and the ARTS product is superior to Positivo BGH. The company will also benefit from high
returns in the Rwandan market.

References
Freeman, R.E., 2010. Strategic management: A stakeholder approach. Cambridge university
press.
Grundy, T., 2006. Rethinking and reinventing Michael Porter's five forces model. Strategic
Change, 15(5), pp.213-229.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Jameson, F., 2007. Late Marxism (p. 214). Verso.
Lee, H., Kim, M.S. and Park, Y., 2012. An analytic network process approach to
operationalization of five forces model. Applied Mathematical Modelling, 36(4), pp.1783-1795.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy
Reviews, 40, pp.798-805.