New Zealand High Tech Company Feasibility

Joseph Kirchner

Feasibility Study

April 7, 2010

I. Introduction

As a new member of the International Marketing Department for this high tech company, I will be looking into New Zealand and deciding whether or not our company should enter their market. We are a new company established last year with a global vision. The company is part of an international alliance of small high tech companies developing gaming and educational software. The company currently has 30 employees, most of which are involved in the software development. We are currently looking to hire a larger sales force so we can expand deeper into current markets that we are dealing with. Last year we had sales of $2 Million, but an operating loss of $100,000 which was expected. We are hoping to expand and make a profit this year.

II. Country Analysis

The United States is the second-largest trading partner for New Zealand, with United States goods and services accounting for approximately 9% of all imports. The New Zealand dollar reached a 24-year high of over United States $0.80 in July 2007. New Zealand's total imports from the United States, as of October 2008, amounted to United States $3.2 billion. The market-led economy offers many benefits for United States exporters and investors. Investment opportunities exist in chemicals, food preparation, finance, tourism, and forest products, as well as in franchising. The best sales and investment prospects are for medical or veterinary instruments, motor vehicles, information technology, hotel and restaurant equipment and other similar trades. (Globaledge.msu.edu, 2009) Seeing that the best investment prospects include information technology, it means that our product has a great chance of succeeding in New Zealand.

New Zealand welcomes and encourages foreign investment without discrimination. The Overseas Investment Office (OIO) must give consent to foreign investments that would control 25% or more of businesses or property worth...