| Summary: | Transpacific Investment Corporation –TCI– is a private entity determined to take advantage of the increasing market opportunities arising between Asia and Latin America. TCI is to be incorporated under Guatemalan law in November 2003. The corporation plans to start its operations in Taiwan by February 2004, pioneering into the Spanish Language Industry.
The Spanish Language Division of TCI will offer price-competitive opportunities to study Spanish and do tourism in Guatemala. The Division’s tasks will be distributed between two agencies: a Promotion and Recruitment Agency in Taiwan and a Coordination Agency in Guatemala. The latter is in charge of selecting the highly-qualified Spanish Learning Centers and Local Tour Operators that will be responsible for executing the language learning and tourism activities provided to TCI’s clients. Additionally, the Coordination Agency will select adequate insurance and security services to ensure maximum safety for the participants.
The promotional efforts will be targeted at university students currently participating in Spanish language courses, and the marketing mix has been designed according to their needs. The leaders of this venture believe that there is a promising opportunity on this field because of the latent popularity of the Latin culture and the price advantages that Guatemala is capable of offering.
Currently, more than 1,300 Taiwanese students participate in Spanish language courses. With its diverse products, TCI estimates it can attract at least 33 students on the first year of operations, 49 students on the second year, and 55 students on the third year. These numbers represent, respectively, market shares of 10%, 15%, and 20%, of conservatively defined potential markets.
The initial investment required for the venture is slightly above NT 500,000. If the market share goals are achieved, it will be possible to reach the payback period in 13 months, and to enjoy net income above NT 200,000 for the second year, and above NT 800,000 for the third year. These results yield a return-on-investment ratio higher than 1.44.
|
|---|
