Business Diagnostics and Opportunities in

The European Union

Grupo 1

Dennys Paola Fernandez González

Institución Universitaria Politécnico GranColombiano

Culture and Regional Economy of Europe

 CONTENT

1. INTRODUCTION .......................................................................................................... 1
2. OBJECTIVES ................................................................................................................. 2
2.1. General objective ..................................................................................................... 2
2.2. Specific objectives ................................................................................................... 2
3. JUSTIFICATION............................................................................................................ 3
4. FIRST DELIVERY ......................................................................................................... 4
4.1. ANALYSIS AND CHARACTERIZATION ........................................................... 4
4.1.1. Pre-Selection Matrix ......................................................................................... 4
4.1.2. Analysis of the data in the matrix ..................................................................... 4
4.2. CHARACTERIZATION ....................................................................................... 15
4.2.1. Singapore ........................................................................................................ 15
5. SECOND DELIVERY .................................................................................................. 19
5.1. Main Business Partners .......................................................................................... 19
5.1.1. Trade Balance ................................................................................................. 21
5.1.2. Exports ............................................................................................................ 21
5.1.3. Imports ............................................................................................................ 22
5.2. Business Culture .................................................................................................... 23
6. THIRD DELIVERY ..................................................................................................... 26
6.1. Requirements Identify (2) companies from the selected country. ......................... 26
6.1.1. SINGTEL ....................................................................................................... 26
6.1.2. HYFLUX ........................................................................................................ 28
6.2. Select a product or service from Colombia............................................................ 30
6.2.1. Formal proposal of the product or service (innovative features / benefits) .... 30
6.2.2. Strengths and threats on access to that market ............................................... 37
6.2.3. Economicand logistical strategies to differentiate from competitors ............. 37
6.2.4. Alternatives to position the product or service in that countryObservations . 37
7. REFERENCES.............................................................................................................. 38
I
 1. INTRODUCTION

The in-depth analysis of macroeconomics and its indices allow us to measure the

economic life of nations and the world; the analysis of these variables is transcendental

for both nations and individuals. Thus, examining all the different variables in

determining their levels and changes from different time perspectives is of great

importance to all, these provide a snapshot of global trends and business opportunities.

Also, to identify business opportunities between Colombia and Asia, to know the

most important companies and positions implicit in the process and to promote the

importance of knowledge and respect to the diverse cultures of the world when doing

international business.

Taking into account data on the commercial relationship between the two partners,

as well as the agreement itself.

1
 2. OBJECTIVES

2.1. General objective

Analyze the Asian continent, preselected some of the economies of the region,

identifying its business culture and analyzing macroeconomic variables

2.2. Specific objectives

• To express and identify written form the particular problems and situations of

international business in Asia. To analyze data and macroeconomic variables

for international negotiation and consensus between the parties.

• Evidence of the projections and business prospects that ASIA represents for our

country and for the whole world.

• Analysis of the macroeconomic variables of some Asian countries.

2
 3. JUSTIFICATION

The analysis of economic phenomena is a starting point for understanding the

economic relationship between some countries

The economic discipline offers theories and methods both for the analysis of these

phenomena, and for the formulation of policies that contribute to finding the best ways

to take advantage of the resources available in a territory. However, in a globalized

economy, problems such as inflation, unemployment, poverty require a particular

approach.

Consequently, Macroeconomics, as a branch of the Economy, provides elements to

understand how a nation's income is measured, what explains economic growth,

inflation and unemployment, and what are the effects of different government

interventions to control them. So that these topics constitute an interesting starting

point for those who start in the study of economics as a discipline that nurtures the

study of land management and its development.

3
 4. FIRST DELIVERY

4.1. ANALYSIS AND CHARACTERIZATION

Select 3 countries:

- Country A. Single country: Japan

- Country B. Asian tigers: Singapore

- Country C. Free choice region of the continent: Arabian Saudi

4.1.1. Pre-Selection Matrix

JAPAN SINGAPORE ARABIAN SAUDIT

TOTAL GDP 4.940,16 US 296.98 US 646,44 US
Inflation -0,3% 0,60% 0,10%
Unemployment rate 2,5% 2,20% 5,60%
Human Development Index (HDI) 0,903 0,925 0,847
Doing Business(regulations for doing business) 75,68 84,57 62,5
Exchange Rate (Colombian pesos) 26.139 COP 2.144 COP 764 COP
International reserves 1.216.518.740.593 251.058.290.846 547.260.618.084
External Debt / GDP (External Dept over GDP) 74,1% 111,55% 13,06%

4.1.2. Analysis of the data in the matrix

Indications: Perform an analysis of the data obtained in the matrix, where his

importance of each variable is evidenced with solid arguments.

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 4.1.2.1. Total GDP

JAPAN SINGAPORE ARABIAN SAUDIT

TOTAL GDP 4.940,16 US 296.98 US 646,44 US

4.1.2.2. Analysis of Inflation

JAPAN SINGAPORE ARABIAN SAUDIT

Inflation -0,3% 0,60% 0,10%

This macroeconomic indicator allows us to measure the level of price growth, or as

in the case of Saudi Arabia, the opposite phenomenon is deflation, which is a

downward trend in prices.

When making the comparison between the 3 countries, Japan is the country with the

lowest level of inflation, in this case represents that the prices that the final consumer

has to pay for the product or service are very low, placing Japan in the number 1

position worldwide for its annual inflation rate.

In this sense, low inflation like that of Japan, promotes the efficient use of

productive resources and reduces uncertainty, which generates an increase in

investment. On the contrary, when inflation is high, the economy must look for

measures to slow down growth, but if the price growth is downward as in the case of
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Saudi Arabia, the opposite effect is generated, which is the flight of investment. Of the

country, because there is no certainty of economic stability.

Low and stable inflation is an indicator of macroeconomic stability that helps people

and companies make investment decisions with confidence.

In this macroeconomic variable who has a better variation in the levels of inflation

is SINGAPORE, this country has a solid economy, has a high surplus and has

significant reserves in foreign currency, which allows it to have a wide margin to

increase social spending and support state entities, the government's priority being to

ensure quality growth and build a more inclusive society.

4.1.2.3. Analysis of the Unemployment Rate

JAPAN SINGAPORE ARABIAN SAUDIT

Unemployment rate 2,5% 2,20% 5,60%

When comparing the Unemployment Rate in these three countries, it is Saudi

Arabia that has the highest unemployment rate. This macroeconomic indicator is of

great importance for an economy since it reflects the well-being of the families,

contrary to what the GDP reflects, which economic growth is, therefore in terms of

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carrying out a poverty level analysis of a country, this is an indicator that allows

comparisons.

The level of the unemployment rate is therefore more important, since it is

significant for the population to have a job and earn income, leaving aside whether the

economy had growth or not, since an expansion in economic activity does not

necessarily imply a greater generation of jobs. At the same time, GDP growth is an

average that does not say much about the distribution of income or the welfare of

families.

This is a variable that can greatly influence the behavior of the markets if it departs

much from the expectation, because investors observe in this indicator if it is very high

or low.

In this macroeconomic variable who has a better variation in the unemployment rate

is SINGAPORE, although in relation to JAPAN and SAUDI ARABIA, Singapore has

a low unemployment rate, this country has undergone structural economic changes,

which has affected the level of employment. Since 2014, the unemployment rate has

been increasing due to the subcontracting of low-skilled work. Singapore also has

increasing wage inequalities, overpopulation and difficulty in accessing employment.

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 Despite some measures to protect Singaporean workers, such as limitations on

foreign labor in recent years, the unemployment rate has not decreased.

4.1.2.4. Analysis Human Development Index

JAPAN SINGAPORE ARABIAN SAUDIT

Human Development Index (HDI) 0,903 0,925 0,847

This variable allows to evaluate the development of a country and not its growth;

HDI takes into account three factors: the ability of individuals to live long in good

health; to acquire knowledge, communicate and participate in society; and to have

resources that allow him to live a dignified life.

This macroeconomic indicator allows us to know not only the income of the

population, but also to assess how much the country contributes to the citizens, that is,

the living conditions.

According to the classification carried out by the United Nations Program, the

countries are analyzed as follows:

- Japan, Singapore and Saudi Arabia are countries with High Human Development

("High Human Development"), because they have an HDI higher than 0.80.

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 Although it is not an integral measure of the well-being of a country, it gives a

broad view of human progress and allows assessing whether the country is evolving

towards offering people better living conditions in terms of health, education and real

income.

4.1.2.5. Analysis Doing Business

JAPAN SINGAPORE ARABIAN SAUDIT

Doing Business(regulations for doing business) 75,68 84,57 62,5

The Doing Business is a variable that allows a comparison between countries, which

establishes a ranking according to how the business climate of each country develops,

to make a parallel that stimulates competition among the economies analyzed.

Since 2013, the report on Doing Business has been made, has allowed countries to

create good practices in the regulation of companies. The most significant changes

have occurred in the implementation of new technologies, transforming the way in

which governments interact with citizens and the business community.

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 This measurement determines important indicators in the ease of doing business,

measuring the processes of creation of companies, payment of taxes and records of

property and construction licenses, among others.

For a foreign investor, this indicator is fundamental when it comes to making

decisions about the investment in a certain country, because it can establish the ease

with which it has to carry out procedures related to business development, since an

extended time means increases in costs and establishment expenses, which leads to

thinking about other options.

The ranking is very important both for local businessmen and foreign investors

seeking destinations with a good business climate that favors the development and

growth of their companies, therefore reducing time and costs allows investment to enter

the host country.

In the analysis of this variable SINGAPORE is the country that best Doing

Business.

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 4.1.2.6. Analysis Exchange Rate

JAPAN SINGAPORE ARABIAN SAUDIT

Exchange Rate (Colombian pesos) 26.139 COP 2.144 COP 764 COP

The exchange rate is the price of one currency in terms of another, it is important

when making economic transactions with other nations. Normally they are carried out

taking into account as the exchange rate the dollar.

In practice, the exchange rate is very important for those who sustain transactions

abroad, whether by trade, by debt or by investment.

In the case of the Colombian peso in relation to the currencies of the countries that are being

analyzed, the currency of Japan is much stronger than the Colombian one, due to the fact that it is

necessary to give many more pesos for 1 yen, opposite relationship happens with Saudi Arabia

before which you must give a lower amount of pesos.

Because there is no currency that fulfills the function of world money, international

economic operations are carried out in different national currencies, before which there

is a need to relate them in order to carry out the transactions. This association is not

only carried out for the importation of goods and services, but also for investments,

purchase of bonds and shares, donations and loans abroad.

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 Convertibility allows a country to participate openly in the world economy, a

convertible currency is a necessity and convenience for the development of

international trade, therefore an inconvertible currency implies barriers to trade,

limiting the flow of capital

4.1.2.7. Analysis International Reserves

JAPAN SINGAPORE ARABIAN SAUDIT

International reserves 1.216.518.740.593 251.058.290.846 547.260.618.084

When analyzing this variable, the country with the largest international reserves is

Japan. The importance of this variable lies in economic decisions within a country,

since the increase or decrease is due to monetary policies. For a country it is very

important to have international reserves, because it means that it has a backing to cover

lower inflows of foreign resources, which would lead to fluctuations in the exchange

rate.

International reserves are important, because they stabilize the balance of payments

and are an external debt support, since they improve the international risk indexes,

exchange stability and minimize the risk of the effects of variations in the flow of

foreign currency. These are like a type of mattress that countries have for when

economic difficulties arise, a country without international reserves is like a person

without savings.

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 The more international reserves a country has, the more support there is to defend

the value of the local currency. In these cases, the local currency is strengthened and is

not so vulnerable to variables that affect its value; that is, it is not devalued. On the

other hand, it must be taken into account that a very high value of the local currency is

not good either; The central bank, in these cases, can choose to buy foreign currencies

looking for an effect contrary to the previous one, seeking to maintain a price of the

local currency that guarantees the economic stability of the country and the

competitiveness of its exports.

The increase in international reserves is the result of some transactions that a

country makes abroad. The transactions that allow increasing international reserves

are: exports, credits from foreign banks, transfers or transfers to the country and foreign

investment in the country. On the contrary, those that reduce international reserves are,

among others, imports, payments of debts contracted abroad and the movements of

Colombians from the interior to the exterior.

4.1.2.8. Analysis External Debt / GDP

JAPAN SINGAPORE ARABIAN SAUDIT

External Debt / GDP (External Dept over GDP) 74,1% 111,55% 13,06%

When performing the corresponding analysis, of the three selected countries who

have a greater external debt in relation to GDP, it is Singapore which has a debt greater

13
than the value of its annual production, which indicates that it is an economy that

produces and sells goods and insufficient services to pay their debts, thus incurring

more debt.

External debt is an important variable in the economy of a country, since the

government assumes external debt as a mechanism to obtain resources with different

purposes, either to carry out social projects, such as the construction of schools,

hospitals, capacitation’s, o also to carry out infrastructure works such as: roads,

bridges, aqueducts, telecommunications, or for other purposes.

On many occasions this debt is equivalent to difficult periods facing the debtor

country or different problems that cannot be solved due to the lack of resources on the

part of the public sector, which then generates that countries, especially third world

countries such as the Latin countries, resort to obtaining loans or different types of

agreements from foreign territories or, for example, from other entities such as the

World Bank in order to solve certain needs within their territory.

A surplus, that is, a lower percentage of the debt in relation to the GDP, means that

the country is producing enough to pay its debts, and if the opposite effect is found, it is

in a state of deficit.

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 4.2. CHARACTERIZATION

Select the country with the best and most evidenced with solid arguments.

According to the groups criteria, select the country with the best and most competitive

macroeconomic figures presented (justify its choice).

4.2.1. Singapore

Capital: Singapore (City state)

Population (2016) 5.607.300 Estimate

Government: Parliamentary Republic

Currency: Singapore Dollar SGD

Of the macroeconomic variables analyzed above, Singapore has 5 out of 8 variables with a

better index, which are:

15
- Inflation

- Unemployment rate

- Human development Index

- Doing Business

- Exchange rate

Which means that it is more competitive compared to the countries in comparison.

This is mainly due to:

The economy of Singapore is characterized by its extreme financing and its high

degree of openness, being therefore very dependent on international trade, for the year

2016, the World Bank anticipated a growth of 1.7% but nevertheless it was 2%.

Singapore has a strong economy, currently enjoys a surplus and has significant

foreign exchange reserves, which allows it ample room to increase social spending and

support state enterprises, making it a priority for the government to ensure that

economic growth is of quality and generate in the population social inclusion.

16
 This is a very competitive country and the initiatives come from the government in

search of activities to generate added value, such as in biotechnology, research and

development in both industry and services. The government of Singapore, has as its

essential purpose that state enterprises improve their competitiveness through the

digitalization and improvement of connectivity.

In terms of social issues, it has established public measures to achieve social

integration through aid to households, tax incentives, scholarships and aid to the

poorest.

Singapore has a low unemployment rate, however this has been increasing in

relation to previous years, and this is due to the fact that there is a deficit of skilled

labor and the aging of the population, which has led immigrants to work in the

industries.

The per capita income is one of the highest in the region, however there are

increasing wage inequalities, before which the government works to reduce the

situation.

In terms of economic activities, Singapore has one of the most important ports in the

world, being the second in container traffic after Hong Kong.

17
 The service sector, which is dominated by trade, business services, transport,

telecommunications and financial services, accounts for three-quarters of GDP and

employs a large part of the active population.

Singapore's economy is highly industrialized, with electronics and petrochemicals

dominating the industry.

The primary sector is almost nil, since only orchids, legumes and aquarium fish are

found.

Singapore, despite being a small country, with few natural resources is one of the

most prosperous countries in the world, due to its high per capita income.

The country has a highly developed market economy, with a free, prosperous business

environment, open environment, low corruption, stable inflation rate and higher per capita

income than that of many developed countries.

Singapore's economy is considered one of the most welcoming economies in the

world, due to the ease of conducting negotiations and its high rate of human

development, which leads to immigrants arriving in the country to work.

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 The rapid growth of Singapore, characterized by an active promotion by the State,

has been accompanied by a significant transformation of its economic structure, where

the industry has shown an important change from traditional low value-added

manufactures to high-tech and high-impact industries, as well as the rapid growth of

financial and business services. Likewise, the population in general has experienced

improvements in the quality of life, placing this small dynamic country, in one of the

most successful experiences in terms of economic development with social welfare in

Asia-Pacific.

However, the government maintains a fiscal discipline, not spending more than it

enters, since the country has demanding laws to limit public indebtedness.

5. SECOND DELIVERY

5.1. Main Business Partners

Requirements: With the selected country students must identify the (2) main trading

partners worldwide, and investigate the reasons behind this successful commercial

relationship; Detailing the ranking of the (10) main export and import products in the

last year.

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 The three main countries to which Singapore exported 2016, together with the

proportion of partners in%, are:

A) Exports from Singapore to China for US $ 42,859 million, with a 12.99% share

of associates.

B) Exports from Singapore to Hong Kong (China) for a value of US $ 41,593

million, with a proportion of 12.61% of the members.

C) Exports from Singapore to Malaysia for a value of US $ 35,004 million, with a

proportion of 10.61% of the associates.

The three main countries to which Singapore imported goods 2016, along with the

proportion in%, are:

A) Imports from Singapore from China for a value of US $ 40,414 million, with a

proportion of 14.28% of the associates.

B) Imports from Singapore from Malaysia worth US $ 32,250 million, with a ratio of

11.40% of associates.

C) Imports from Singapore from the United States for a value of US $ 30,718 million,

with a proportion of 10.85% of the associates.

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5.1.1. Trade Balance

As of 2016 Singapore had a positive trade balance of $55.4B in net exports. As

compared to their trade balance in 1995 when they had a negative trade balance of

$22B in net imports.

5.1.2. Exports

In 2016 Singapore exported $315B, making it the 14th largest exporter in the world.

During the last five years the exports of Singapore have decreased at an annualized rate

of 5.138%, from $250B in 2011 to $315B in 2016. The most recent exports are led

by Integrated Circuits which represent 20.8% of the total exports of Singapore,

followed by Refined Petroleum, which account for 11.3%.

In 2016, exports fell by 4.64% compared to the previous year. Sales abroad

represent 111.02% of its GDP, a very high percentage if we compare it with that of the

rest of the countries. It is ranked No. 2 out of 189 countries in relation to GDP.

21
 With a figure of 297,924.5 million euros, Singapore occupies an important place in

the ranking of countries by volume of exports. This year there was a surplus in

exports, since they fell and were lower than exports.

This year there was a surplus in its commercial balance, since imports fell and were

also lower than exports

The coverage rate (percentage of what is imported that can be paid with what is

exported) was 116.56%.

If we look at the evolution of exports in Singapore in recent years we can see that

they have fallen compared to 2015, although they have risen compared to 2006 when

they were 216,475.8 million euros, which represented 183.91% of their GDP.

• Main export products: computer equipment, rubber and derivative products,

petroleum derivatives, telecommunications equipment.

5.1.3. Imports

22
 In 2016 Singapore imported $ 259 milliards, making it the 17th largest importer in

the world. The most recent imports are led by Integrated Circuits, which represents

14% of Singapore's total imports, followed by Refined Petroleum, which represents

12.1%.

• Main import products: aircraft, oil, chemical products and food.

Singapore is the 14th largest export economy in the world and the 4th most complex

economy according to the Economic Complexity Index (ECI). In 2016, Singapore

exported $315B and imported $259B, resulting in a positive trade balance of $55.4B. In

2016 the GDP of Singapore was $296B and its GDP per capita was $87.9k.

5.2. Business Culture

Requirements: With the country selected, examine the business culture (cultural diversity,

negotiating strategies, time management and actions to avoid). The main trading

partners can be identified with the analysis of recent behavior in the country's trade

balance with the rest of the world.

23
 Singapore is a country that mostly preserves its traditions and is cosmopolitan, it is

also considered a world power for business, and it also shows that the city of Singapore

is modern but at the same time maintains its ethnic features.

In its commercial policy, Singapore adopts the free market system, it is where the

government does not intervene in the economic decisions of the companies unless they

affect the social or political environment. That is, entrepreneurs are free to install

businesses in any sector, so that their industries can respond and quickly adjust their

strategies. (Ramos Crespo, Political Commercial, 2017)

With the free market system, open competition is allowed not only among domestic

firms, but also among foreign firms and products, ensuring the competitiveness of local

companies without having to close for external competition, benefiting all citizens with

prices to low cost.

For the instruments in the commercial policy that Singapore maintains throughout

the country, we can obtain a reduction to trade, helping to improve the prices and the

tariff on exported products, also, for the amount the quota is voluntarily restricted; on

the other hand, the instruments that are handled can increase the trade thanks to the fact

that the price can increase according to the quantity also on a voluntary basis for

imported products. (Ramos Crespo, Political Commercial, 2017)

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 As a result of the foregoing, Singapore has benefited from the presence of

multinational companies from abroad, and therefore bring capital, technology, know-

how and access to the world's export markets.

For business strategies according to the latest report of the World Bank's Doing

Business, which analyzes the environment and the evolution of business in all countries

and according to several indicators, we can establish that Singapore ranks second in

terms of facilities for establish business, after New Zealand. It is important to note

that Singapore's vision is futuristic in business, it also has a qualified workforce, a

favorable tax regime and represents a testing platform for multinational companies.

25
 6. THIRD DELIVERY

6.1. Requirements Identify (2) companies from the selected country, which are currently

importing, foreign direct investment, indirect or some kind of international business in Colombia,

analyzing the type of industry or economic sector to which it belongs, What are the

characteristics of the products or services they market and how their operations generate added

value for our country.

6.1.1. SINGTEL

Singapore Telecommunications Limited (commonly abbreviated as Singtel, and formerly

stylized as SingTel) is a Singapore telecommunications company. The company is the largest

mobile network operator in Singapore with 4.1 million subscribers and, through its subsidiaries,

has a combined base of mobile subscribers of 640 million customers at the end of fiscal year

2017. The company was known as a Telecommunications Team until 1995. Singtel provides ISP

(SingNet), IPTV (Singtel TV) and mobile telephone networks (Singtel Mobile) and fixed line

telephony services.

The Singtel Group is the main communications group in Asia.

We offer a wide range of services including fixed, mobile, data, Internet, television,

information technology (ICT) and digital solutions.

26
 Based in Singapore, Singtel has more than 130 years of operational experience and played a

key role in the development of the country as an important communications center.

Singtel is one of the largest companies in Singapore on the Singapore Stock Exchange by

market capitalization. The Group has a wide network of offices in Asia Pacific, Europe and the

USA. UU and employs more than 23,000 employees around the world.

Sector / industry: Telecommunications

The Singtel group of companies includes subsidiaries, associated companies, as well as

holdings in foreign entities. Its main pillar is in the mobile phone industry, where it has a total

subscription base of 638 million as of March 31, 2017: to be a leader in communication with

infrastructure in Singapore, a developed country, contributes and innovates our country Colombia

from Telecommunications networks here are very poor and their signal is very low. Additional to

make a direct negotiation in the telecommunications part benefits our country Colombia since the

international calls would be cheaper and more effective.

Singtel's international submarine cable network offers connections from Singapore to more

than 100 countries. It is a major investor in many of the world's submarine cable systems, such as

Southeast Asia, the Middle East, Western Europe, the cable network, Southeast Asia, the Middle

East, Western Europe, the cable network and the cable network. . Peaceful Asia , China-USA UU

UU., Japan-EE. UU., Southern Cross Cable Network and Unity Cable Network. Unity Cable

Network was commissioned in March 2010.

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6.1.2. HYFLUX

As a global leader in sustainable solutions, focusing on the areas of water and energy,

Hyflux is committed to providing cost-effective and innovative solutions that contribute to the

optimization of resources and sustainable growth for communities and industries. A water

treatment specialist and one of the leading suppliers of desalination plants worldwide, Hyflux is

distinguished by its ability to address challenges at every point of the entire water value chain. In

the area of energy, the company has expanded from power generation and retail to include the

conversion of waste into energy, providing clean and renewable energy.

The Group's track record includes Singapore's first water recycling plant and two seawater

desalination plants (SWRO), and some of the largest SWRO desalination plants in the world in

Algeria, China, Oman, Saudi Arabia and Singapore. The Group is also developing the first

Integrated Water and Energy Project in Asia and the largest waste-to-energy conversion plant in

Singapore. Based and listed in Singapore, Hyflux has operations and projects spanning Asia

Pacific, the Middle East, Africa and America.

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 Sector / Industry: Oil

Being a producer and exporter of water and energy comes to our country Colombia with

great boom, as we urgently require new and advanced technology to clean our seas and rivers

which are heavily polluted. When negotiating with Singapore, Colombia enters an advanced level

of care for the environment, avoiding fewer diseases to animals and humans.

Hyflux has completed projects in Singapore, China, Southeast Asia, the Middle East and

Algeria. Some of which include:

• Sing Spring seawater desalination plant, Singapore

• Seawater desalination plant, Tianjin city, China

• Seawater desalination plant, Magtaa, Algeria

• Seawater desalination plant, Tlemcen, Algeria

29
6.2. Select a product or service from Colombia, through which new business opportunities can

be evaluated, allowing our exporters and entrepreneurs to diversify their exportable supply,

increase their investment portfolio or reinforce their commercial presence in the selected country.

For this process they must project a negotiation, where they present:

- Formal proposal of the product or service (innovative features / benefits)

- Strengths and threats on access to that market

- Economic and logistical strategies to differentiate from competitors

- Alternatives to position the product or service in that country Observations

For this latest delivery, if there are no companies specifically located in the

selected country, you can develop the fifth requirement with companies in the region.

Similarly, for the sixth requirement, you can evaluate business opportunities with

countries in the region.

6.2.1. Formal proposal of the product or service (innovative features / benefits)

Company Houd Sound

It emerged in 2012 after sound engineer David Sandoval and industrial designer Gustavo

Huertas created a speaker model that allows you to listen to music anywhere and takes advantage

of the beauty of wood.

30
 They are wood speakers that do not need cables or electricity and are adaptable to

smartphones and other mobile devices, combining acoustic fundamentals with innovative

designs.

Taking into account the sensibility of the people for the design within their spaces and

accessories, we found a market to start designing sound systems accompanied by a design that

was within reach of everyone.

The designs have come from its online sales platform to the United States, Singapore,

Belgium and Australia, among others, with what the international market already represents 5%

of the total turnover of this company, which in the country markets its products in fairs and

design stores and directly.

Its intention is to offer "portable devices that go hand in hand with the pace of life that is

leading the human being."

So they have developed two product lines: acoustic or passive and traditional, also known

as active or electrical.

The first ones are acoustic boxes designed as a horn and whose concave shape makes the

sound amplify by having contact with the surface.

For this they adapted the principle of the Helmholtz resonator and developed a cavity that

allows absorbing the sound emitted by cell phones or tablets, especially from Apple, and

amplifying it.

They have a range of 20 decibels, about four times more than the sound of a cell phone, and

its value ranges between 90,000 and 160,000 pesos (between 40 and 70 dollars).

31
 The speakers are made of high density woods and environmentally certified, most of the

eastern and southern plains of the country, so that the sound travels better and has a more

adequate resonance.

The active line uses traditional amplification and includes a wireless or Bluetooth system,

has a power of 80 watts and a lithium battery.

We try to be accompanied by designs and objects related to the space in which they will be,

The client chooses the design of their taste and is printed on canvas canvas for a value ranging

between 500,000 and one million pesos (between 206 and 413 dollars).

Since 2012, Colombian companies that designed sound systems began to disappear due to

the incursion of products from China, which have a lower cost.

This situation allowed us to identify two lines of business: the sale of speakers and the

adaptation of sound systems for hotels, restaurants and clinics, among others.

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 PRODUCTS
Passive
COP $ 150,000

WEIGHT
1 kg
DIMENSIONS
21cm / 21cm / 4.5cm
SOUND
Amplifies 4x / 20 db
COMPATIBILITY
Any tablet or smart phone that does not exceed 19 cm in width and has the speakers at the
bottom.

33
Mini
COP $ 95,000

WEIGHT
0.5 kg
DIMENSIONS
11.5cm / 11.7cm / 4cm
SOUND
Amplifies 4x / 20 db
COMPATIBILITY
Any smartphone that does not exceed 9 cm in width and has the speakers at the bottom.

34
 Klass
COP $ 320,000

Iconic speaker of those first machines to amplify the sound with the power of pure physics.
WEIGHT
2 kg
DIMENSIONS
21cm / 19.5cm / 5cm
SOUND
Amplifies 4x / 20 db
COMPATIBILITY
Any tablet or smartphone that does not exceed 19 cm in width and has the speakers at the
bottom.

35
Kurven
COP $ 790,000

WEIGHT SPECIFICATIONS
5 kg Class D amplifier
DIMENSIONS 50 watts x 2
28CM / 20CM / 15CM FREQUENCY
CONNECTIVITY 60HX - 16KHZ +/- 3DB
Bluetooth 4.0 SPEAKERS
AUX 3.5 mm minijack Tweeter
BATTERY 1 Neodymio Vifa from Denmark
8 hours listening at 50% power Woofer
5 1/2 Vifa from Denmark

36
6.2.2. Strengths and threats on access to that market

Its greatest strength lies in the unique and innovative design of its speakers, in addition it

also offers you the possibility to customize it to your liking.

Taking into account the great reception that craft speakers have had in the world, and the

increasing demand are emerging new producers who in their eagerness to compete could devalue

the product.

6.2.3. Economic and logistical strategies to differentiate from competitors

Establish alliances with the companies that produce smartphones to improve their designs

and expand their product portfolio.

6.2.4. Alternatives to position the product or service in that country Observations

Through social media advertising and its online sales portal, it has found a very good

alternative to position itself not only in Singapore but around the world.

We are in the process of search and investment for marketing, production optimization and

international expansion.

37
 7. REFERENCES

Trading Economics. (2017, September 25). Singapur - Tasa de inflación. Retrieved

November 02, 2017, from https://es.tradingeconomics.com/singapore/inflation-
cpi

Knoema. (2017). World Data Atlas. Retrieved November 12, 2017, from Singapore -
Human development index:
https://knoema.com/atlas/Singapore/Humandevelopment-index

Banco Mundial. (2017). Doing Business. Retrieved November 12, 2017, from
Singapore: http://espanol.doingbusiness.org/data/exploreeconomies/singapore

Global Finance. (2017, November 02). Singapore GDP and Economic Data. Retrieved
November 02, 2017, from https://www.gfmag.com/global-
data/countrydata/singapore-gdp-country-report

Trading Economics. (2017). Retrieved November 12, 2017, from Singapore

Government External Debt: https://tradingeconomics.com/singapore/external-
debt

datosmacro.com. (2017). Déficit: Comparativa países. Retrieved November 17, 2017,

from Déficit público: https://www.datosmacro.com/deficit

Ramos Crespo, J. C. (2017). Política Comercial. Retrieved December 02, 2017, from
http://www.comercioexterior.ub.edu/correccion/05-
06/singapur2006/8.poltcomer.htm

Ramos Crespo, J. C. (2017). Commerce in Singapore. Retrieved December 02, 2017,

from http://www.comercioexterior.ub.edu/correccion/05-
06/singapur2006/8.1.poltcomer.org.htm

World Trade Organization. (2016, July 26). Trade Policy Review: Singapore. Retrieved
December 02, 2017, from
https://www.wto.org/english/tratop_e/tpr_e/tp443_e.htm

Observatory of Economic Complexity. (2016). What does the Singapore exports?

Retrieved November 27, 2017, from
https://atlas.media.mit.edu/en/visualize/tree_map/hs92/export/gbr/all/show/201
6/

38
Datosmacro.com. (2016). Singapur - Balanza comercial. Retrieved November 27,
2017, from https://www.datosmacro.com/comercio/balanza/singapur

Ceicdata.com (2017). Ceicdata: Japan External Debt: % of GDP, from

https://www.ceicdata.com/en/indicator/japan/external-debt--of-nominal-gdp

The World Bank (2018). Doing Business: Measuring Business Regulations, from
http://www.doingbusiness.org/data/exploreeconomies/japan

United Nations Development Programme (2016). Human Development Indicators:

Japan, from http://hdr.undp.org/en/countries/profiles/JPN

Trading Economics (2016). Japan GDP, from https://tradingeconomics.com/japan/gdp

Ministry of Finance, Japan (2018). International Reserves/Foreign Currency Liquidity,

from
https://www.mof.go.jp/english/international_policy/reference/official_reserve_a
ssets/e3004.html

Trading Economics (2016). Saudi Arabia GDP, from

https://tradingeconomics.com/saudi-arabia/gdp

FocusEconomics (2016). Saudi Arabia - External Debt, from https://www.focus-

economics.com/country-indicator/saudi-arabia/external-debt

The World Bank (2018). Doing business: Measuring Business Regulations, from
http://www.doingbusiness.org/data/exploreeconomies/saudi-arabia

United Nations Development Programme (2016). Human Development Indicators:

Saudi Arabia, from http://hdr.undp.org/en/countries/profiles/SAU

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