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PESTEL Analysis- Mexico
Transcript of PESTEL Analysis- Mexico
Jaclyn DeRosia Economic Trends Social and Demographic Trends Age Structure: Mexico vs. U.S. Mexican Economic Trends Political System Presidential Voting Results Multi-Party System Political Federal Republic
Elections every six years
President is elected from popular vote
Elections don’t meet international anti-corruption standards The Institutional Revolutionary Party (PRI) Winner: Peña Nieto (PNI)
Incumbent: Felipe Calderón (PAN) Mexico’s economic trends mirror that of the USA
High volume of trade with Mexico
Strong cultural and economic ties
NAFTA (1994) Per Capita GDP Growth: Always been viewed as a youthful country
Median age is 27 years
Life expectancy is 77 years The National Action Party (PAN) The Party of the Democratic Revolution (PRD) 42% 31% Two largest Export/Import Relationships (In billions of $ USD) Crude Petrol Oil - 39.8 Refined Petrol Oil - 19.4 Motor Vehicle Parts - 13.2 Motor Vehicles 39.8 Mexico’s Exports to USA In billions of USD Mexican Exports to USA Mexican Imports from USA Total Exports: $263.1 billion Total Imports: $197.5 billion Billions of USD Sources http://www.fas.org/sgp/crs/row/RL32934.pdf
Focus: Mexico’s current and predicted age distribution Currently: 9 children for every older adult 2050 Prediction: There will be as many children under 20 as there are adults over 65. Forcing the median age from 27 to 42 – quite a dramatic shift. A high-level consideration:
Markets involving products for children (toys, diapers, etc) are booming right now
With the expected dramatic shift to an aging population, markets will be affected.
Future demands: financial and health-related products for living longer and better Technology Education In 2007 Mexico established the Institute of Science and Technology
Younger generation is very interested in the creation and selling of apps for smart phones Nanotechnology and Biotechnology Mexican government is putting great emphasis on nanotechnology and biotechnology
Although it does not have revealed technology advantage in these fields
Issues with toxicity and environmental impact of materials
Higher Education Technology Institutes support projects on clean technologies and renewable energy
R&D in the water sector
R&D and technological innovation in forestry Internet Internet contributes to 1% of GDP in Mexico
telecommunication sector is low
lack of quality in infrastructure
high costs of access
Mexicans companies with Internet have benefits
9% Revenue Increase
5% Cost Reduction
16% Productivity Increase
E-Commerce grew 46% from 2005 to 2010 Microsoft In 2011 Microsoft opened a technology center in Mexico City
First tech center Microsoft opened in Latin America
The Microsoft Technology Centers are designed to help train software developers and businesses to use Microsoft products and services in simulated business environments Gran Telescopio Milimetrico
Large percentage of American branded appliances are of Mexican design and origin
Since the 1990's Mexico has produced advanced automobiles for foreign companies
Electronic Industry Other Technologies