Waterproof Keyboard

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Waterproof Keyboard
Unlike other regions in the world, Africa’s consumption of ICT products is still low, which makes it a favorable region to invest in, especially since the market is not as saturated as the case in developed countries. In particular, Africa’s demand for IT products such as computer peripherals, software, and hardware has continued to increase in the past decades as people’s use of computers grows in this era of technological growth. While this market is vast and many international distributors have already taken up market share in the industry, this proposal only focuses on waterproof keyboards market in East Africa. The paper particularly analyzes the market potential for waterproof keyboards in Kenya and Uganda, identifies barriers to entry, competition, and positive qualities of East Africa for this product. Lastly, this work evaluates the political environment of these states and its effect on product sale as well as potential issues likely to be encountered after entry.
Problem Statement
Computers are an important part of today’s modern world and given its considerable adoption in many African countries, it is apparent that the need for different computer accessories is likely to go high as well. Computers are still considered costly, especially among African communities and therefore, providing a product that may help prevent computer damage due to liquid spillage on the machines is a solution yet to be fully embraced in these countries.

Additionally, computers are largely embraced in a majority of hospitals and as various research reveals, computers harbor germs and pathogens responsible for numerous deaths (Williams, n.p). Therefore, waterproof keyboards provide solutions not only for protecting computers against liquid damage, but also allowing easier cleaning and ultimately ridding harmful germs. The target market is largely learning institutions and healthcare facilities, and other organizations with high utilization of computers and individuals who own personal computers. Considering the country’s need for waterproof keyboards, this makes the region a potential market for the product ready for penetration.
Market Potential for Waterproof Keyboards in East Africa
Computer demand, as well as demand for computer-related services and products, is on the rise in African states as a result of the continued process of computerization far-reaching across a majority of this region in the modern era. Efforts to realize project Vision 2030, Kenyan government embarked on a technological revolution in which the country ensures young students in public schools get acquitted with technologies as their private school’s peers get exposed. In particular, the project aimed at supplying computers to more than 20 thousand public primary schools, 6000 public high schools, and other advance and tertiary leaning schools (Kenya Vision 2030 n.p). The consumption of computers among traders, students in higher learning institutions, and big corporations including government offices as well as non-government agencies is evident. Purchase of second-hand computers is evident among traders such as those operating cyber cafes and learning institutions most of which offer Information Technology courses.
Learning institutions also offer courses that require computer usage including graphic design and animation or music production, which reveal the extent of computer use in the country. Kenya is among the leading Internet users in Africa after South Africa and although smartphone usage and tablets contribute to this utilization, a significant number access the Internet via computers. Additionally, most government and private healthcare facilities use computers, thus adding to the list of potential purchasers of propose merchandise. Although Uganda’s utilization of computers is not as high as that of Kenya, the country also set out to establish computer centers in its learning institutions to reduce computer illiteracy and increase Internet usage among its citizens. Figure 1 summarizes common users of computers in East Africa.

Figure1: Common computer users in East Africa
These statistics, therefore, illustrate the potential of supplying waterproof keyboards in the region since a considerable number of households, learning centers and organizations already own computers. And although some countries, especially China, already penetrated the market with similar product, it is yet to be comprehensively adopted by consumers. In other words, there is significant room for additional competitors in the market. However, there is a greater need for sensitizing residents on the product to create awareness and help them understand the importance of this item.
Competition
The upsurge in demand for computers in Africa saw the United Arabs Emirates scoop a majority of market share in distributing ICT related products making UAE’s computer market the largest in the place (African Business Pages n.p). African Business Pages points out that UAE’ computer market revenue is nearly equal to that of consumer electrical appliances and electronics (n.p). Additionally, African Business Pages estimate Dubai’s computer retail network to be nearly similar to the size of textiles, electronics, gold, and food stores and estimates its yearly turnover to be about the U.S. $1 billion (n.p). Kenya and Uganda imports most of its computers and computer-accessories from the UAE. Recently, however, other competitors including China have acquired a market share in the industry since it has become a large supplier of ICT product in this area. The average cost for this item range between $8 and $40 depending on the retailer, make and brand which offers a price range idea of the ideal price once introduced in the country.
Essentially, competition is not as stiff as the case would be among developed states in that this country is still undergoing developmental changes making it a suitable place to invest. And although China and UAE have already established themselves in the nation, offering better alternatives to consumers will not only promote the brand but also offer the buyer purchasing power.
Barriers to Entry
Although Kenya remains as one of the most favorable conditions for market entry in the East African region which explain exporters’ preference over other states, the country, however, present different challenges to new entrants to existing or new markets. For instance, International Trade Administration indicate the high cost for educated and skilled labor based on developing world standards, and underemployment and joblessness remain high (n.p). The country’s physical infrastructure is also an economic progress obstacle and other problems such as corruption, judicial system dependability, corruption, and government effectiveness. The nation’s price competition is weak despite high price sensitivity among businesses and customers (International Trade Administration n.p). This trend presents both challenges and opportunities for new entrants in which pricing the keyboard at a competitive price can attract more sales. On the other hand, failure to price correctly can prove challenging whereby consumers will settle for any brand presented in the market due to price similarity.
International Trade Administration points out that Kenya ranked 145 out of 176 states in Transparency International study and its viewpoint on corruption index scored 20 out of 100 (n.p). Kenya still experiences problems relating to corrupt operations such as huge government contracts and land purchases (International Trade Administration n.p). And irrespective of the application of various reforms, Kenyan courts still suffer from considerable case backlogs in which some cases tend to take years before successful resolve. Additionally, International Trade Administrations notes that complicated procedural motions often enable involved parties to delay cases for extended periods with suppositions of corruption in the judiciary continue (n.p). As a result, predicting results of judicial proceedings supposed to resolve trade disputes tend to be challenging, making it a concern area among new entrants.
Another market barrier to Kenya includes the states import tariffs. Kenya employs East African Community tariffs and duty and applies excise based on the international harmonized system (International Trade Administration n.p). Ideally, Kenya’s customs port tax ranges at rates between 0 percent and 100 percent and an estimated standard rate of 25 percent (International Trade Administration n.p). Additionally, the country’s imports are subject to an average value-added tax of 16 percent excised on total duty, CIF value and additional relevant duties. It, therefore, appears the nation’s import duty poses a hindrance to entering its market, and therefore, one must have sufficient capital to cover such costs. See a summary of entry barriers into the East African market on Figure2 below;

Figure2: Entry barriers into the East African market summary
Political Environment
Kenya has long been known as a peaceful nation but following the August 2017 national election, the country currently experiences some speculations and anxieties concerning possible political violence. For example, the last election saw tensions rise over continuous protests against the legitimacy of the state’s national elections commissions as well as its authority which resulted in violence between the protestors and police and loss of several lives. Nonetheless, the country’s different stakeholder worked tirelessly towards curbing the tensions to prevent the reoccurrence of violence such as the one experienced after the 2007 general election. The 2007/2008 political violence led to massive loss of lives and destruction of properties worth millions of dollars (International Trade Administration n.p). Kenya’s GDP also suffered at the time in which it dropped up to 0.2 percent but jumped back to 8.4 in 2010 (International Trade Administration n.p).
Kenya has had other elections including the 2013 one which experienced notable piece, but some countries including the U.S. upholds a travel warning for the state due to persistent threats of crime and terrorism. In particular, neighboring countries including Somalia and South Sudan experienced increased security worries which result in heightened security measures directed at public institutions and businesses in Kenya. Moreover, International Trade Administration alleges that Kenya continues experiencing occasional conflicts between ethnic communities which affect economies in those regions and increase security tensions affecting business operations (n.p). Other political environmental issues include severe drought that often stirs conflict between landowners and animal grazers in search of grazing land and water in various places in the nation. Regional fights also affect the country’s operations whereby unstable countries such as South Sudan and Somalia tend to have spill-over effects in Kenya, escalating refugees in the nation. Aside from security instabilities, citizens in these neighboring countries when undergoing dry season seek refuge in Kenya increasing the already large refugee populace from various countries in Africa. Security expenses, therefore, account for a considerable operating cost for companies operating in Kenya.
It is worth noting, however, that Kenya continues to enjoy a continually growing environment for foreign direct investment. More particularly, international investors aiming to set a presence in the country typically undergo similar treatment as that accorded to local investors (International Trade Administration n.p). Notably, international organizations constitute a considerable percentage of the nation’s industrial field. The country has a modest prejudice against international citizens, especially when accessing government’s financed research. International Trade Administration points out that Kenya’s government promotional initiatives for exports do not differentiate between products produced by internationally and locally-owned companies (n.p). Kenyan government also lacks policies meant to direct investment to particular geographic place and instead promotes investments in areas that generate foreign exchange, jobs, and form to and fro connections within rural locations.
Favorable Qualities of Kenya for Waterproof Keyboards
As earlier mentioned, Kenya is at a place where continued growth in ICT adoption is paramount with the increased efforts to ensure young learners in public schools receive near similar exposure to technology as their peers are private schools. Figure3 shows desktop and laptop ownership in Kenya and Uganda in 2012. Additionally, the country has fewer restrictions for foreign investors, whereby aside from import duties, foreign traders enjoy the same treatment as one according to local investors. The ease of accessing government facilities and the nation’s financed research also makes it conducive to engaging in trade operations. The demand for the product is also not restricted to learners at different institutional levels but also in hospital machines, individual, private and public organizations. The market is vast and given that current competitors only cover a small percentage of populations with computers, it offers an opportunity for entry. A successful penetration in the Kenyan market may offer opportunities to expand trade to neighboring countries and possibly even expand to the entire African region. As earlier mentioned, most investors prefer investing in Kenya or establishing their offices in Kenya instead of other East African states largely due to its free trade policy and fewer barriers to entry. It is, therefore, apparent that pursuing Kenya as a potential country to export waterproof keyboards is ideal since there is a need for extending awareness of the product and a huge market to consume it.

Figure3: Desktop and Laptop ownership in Kenya and Uganda (Waema and Ndung’u 23).
Anticipated Problems after Entry
The production of waterproof keyboards within Kenya will necessitate the employment of skilled and educated personnel, which is costly in Kenyan economy. This scenario, hence, means that the company will have increased cost of production which in turn will affect the goods’ price once released to the market. Less competitive prices where different brands offer near similar products t almost same cost will result in consumers not having a preference which may strain its overall consumption and fail to meet expected revenue. It is, therefore, advisable if the company proposes an effective pricing strategy that suits the targeted market whereby it is not too low to generate doubts among buyers concerning its quality or too high becoming unaffordable for most. Also, whereas giant suppliers of the item already established in the country may already be enjoying benefits of economies of scale, this firm will have to subject itself to all forms of taxation during its initial stages until it establishes fully.
Advertising is another issue faced by new companies particularly since the costs tend to be too costly where the need to ensure the target group becomes fully aware of the existence of the new item. Shifting people’s confidence from existing goods to new ones requires huge investments through advertisements until they gain trust in the new alternative. Luckily, very few East Africans are aware of the existence of waterproof keyboard which provides a market advantage to enter without too much opposition. Nevertheless this advantage does not necessarily suggest the firm limit its advertising efforts and instead, they should use this chance to scoop an entire market announcing its presence effectively. In the event the company chooses to exit East Africa, some barriers may appear causing problems for the firm. For instance, like stated previously, successful operation in a foreign country will require huge investments in resources, production costs including highly paid personnel. Attempting to leave the market may result in huge debts which make it difficult to leave a market once operational for a while. See Figure4 for a summary of aftermarket entry issues:

Figure4: Aftermarket Entry issues
In conclusion, East Africa is a potential country for supplying waterproof keyboards. The state is in a progressive transitional state where it aims at improving the overall technology use and knowledge among its citizens. Given statistics that prove computer ownership and usage in Kenya and Uganda, particularly in learning institutions, personal and companies throughout the region, waterproof keyboards provide a solution that can be readily endorsed. The area, nonetheless, lacks sufficient sensitization of the product which can work positively to the new entrant or negatively. The former is where the company takes advantage of this unawareness and uses it to market its product scooping a large market share. The later is whereby the firm will be forced to invest in expensive advertisement initiatives for wide sensitization of the presence of the proposed item. And although the political environment sometimes is unfavorable due to insecurity concerns resulting from politically motivated chaos and insecurities in neighboring nations, Kenya is among the best regions to invest as foreign traders. Free trade policy makes it easy for international traders to have ease of access to the Kenyan market as well as enjoy equal treatment as local businesses. This product is highly likely to thrive in the Kenyan market.
Works Cited
Africa Business Pages. “Computer Hardware Sellers Eye African Markets.” N.d.
https://www.africa-business.com/features/computers-Africa-exports.htmlInternational Trade Administration. “Kenya country Commercial Guide.” Export.gov. 2017.
https://www.export.gov/article?id=Kenya-Market-ChallengesKenya Vision 2030. “Establishment of a Computer Supply Programme.” 2018.
http://www.vision2030.go.ke/projects/?pj=143Waema, Timothy and Ndung’u, Margret. “Understanding what is Happening in ICT in Kenya.”
Research ICT Africa. 2012. https://researchictafrica.net/publications/Evidence_for_ICT_Policy_Action/Policy_Paper_9_-_Understanding_what_is_happening_in_ICT_in_Kenya.pdfWilliams, Richard. “Infection Control: Importance of Washable Keyboards and Mouse in
Medical Settings.” Armagard. 2010