Potencial Para La Entrada Al Extranjero

Foreign entry potential
After expanding to the most important cities and regions of Canada we plan to expand into the Mexican market.
Considering it is the closest and newest market we can enter,and that we currently have plans to associate with Acela Express an American company that provides service to the northeast corridor in USA and its is planning to expand in all USA, so by associatingus with them we will be able to take our service to Mexico, and in that way we can connect the three north American countries.
The most significant risk that we might have by trying to expand intomexico, is that currently in this country there’s no infrastructure for high speed train, this means that is we planed to expand to this country we need to make a huge investment, by not only exportingthe trains into this country but also it is necessary to build the infrastructure necessary to make this project viable.
Evaluate potential entry market:
Our potential market will be a completelynew market, because there is no other competitor or any type of background, also it is a country that is not used to use the train as a conveyance, so if we make it through all the investment andMexican laws it is necessary to make a massive promotion in order to change sociocultural traditions of transportation in this country.
The main city close to the border with the USA is Monterrey and thatwould be our main location, considering its one of the biggest cities in Mexico not only in size but in population and in terms of industrialization.

Pricing strategy
When it comes to the pricesituacion, because our company is going to have to make all he investment and import into mexico all the new high speed trains, the prices will be really high and because there is no antecedent of theservice that we planned to give, we would have make a market analisys before start all the investment to see how much do Mexican society is able to pay for our service and see if it is able for us.