Morocco

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Morocco
??????? ????????Al-Mamlaka al-MaghribiyaKingdom
of Morocco
Chadwick Meyer Stephan Sepanski Craig Wehler
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Our Kingdom has seen reforms that have had
tangible repercussions on the economic situation,
but our ambition is to widen prospects for growth
even further by promoting small and medium -
sized enterprises and encouraging both national
and foreign public and private investment, while
encouraging the private sector to be more
entrepreneurial... His Majesty King  Mohammed
VIKing of Morocco
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Geography
Capital Rabat Casablanca is the largest
inhabited city Area 446,550 sq km Coastline
1,835 km Terrain Mountainous areas with large
plateaus and valleys, rich coastal plains
Northern Mountains are geologically unstable and
subject to earthquakes Climate Mediterranean,
more extreme in interior Natural Resources
Phosphates, Iron Ore, Manganese, Lead, Zinc,
Fish, Salt Land Issues Land Degradation, Water
Contamination, Coastal Water Contamination
CIA World Fact Book
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History

• 8000BC-earliest known inhabitants the Berbers
• 670AD- Arab expansion and Berbers adoption of
  Islamic ways
• 1771-Morocco 1st nation to recognize the US
• 1956-Independence from France and Spain
• 1970-Western Sahara Annex
• 2006-Celebration of 50 years of Independence

Courtesy Wikipedia
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US/Moroccan Relations

• Morocco was the first country to seek diplomatic
  relations with the Government of the United
  States in 1777, and remains one of our oldest and
  closest allies in the region. Formal U.S.
  relations with Morocco date from 1787, when the
  two nations negotiated a Treaty of Peace and
  Friendship. Renegotiated in 1836, the treaty is
  still in force, constituting the longest unbroken
  treaty relationship in U.S. history
• Source US State Department http//www.state.gov

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Demographics

• Population 33,241,259 (July 2006 est.)
• Age 0-14 31.6
• 15-64 63.4
• 65 5
• Average Age 23.9 years
• Growth Rate 1.55
• Ethnicity Arab-Berber 99, Other .7, Jewish .2
• Religions Muslim 98.7, Christian 1.1, Jewish
  .2
• Language Arabic, Berber Dialects, French
• Literacy 51.7 64.1 Male, 39.4 Female

CIA World Fact Book
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Hofstedes Dimensions
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Government

• De jure Constitutional Monarchy with an elected
  Parliament
• Executive Branch
• Chief of State King Mohamed VI
• Head of Government Prime Minister Driss Jettou
• Cabinet Council of Ministers appointed by
  Monarch
• Legislative Branch
• Chamber of Counselors 250 seats
• Chamber of Representatives 325 seats
• Judicial Branch
• Supreme Court

Courtesy Wikipedia
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Economy

• GDP by sector Agriculture 21.7 Industry 35.7
  Services 42.6
• Worlds Largest Producer and Exporter of Cannabis
• Unemployment Rate 12.1
• 19 of the Population is below the Poverty Line
• Child Labor Issue- 1999 over 500,000 children
  under 15 were in the labor force

Courtesy Wikipedia
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Notable Information

• Not a member of the African Union
• Mudawana- More rights for Woman 1st of its kind
  in the Arab and Muslim World
• Capital Punishment- highly debated and Moroccan
  Parliament will vote in 2007
• Morocco is one of the primary launching points of
  illegal migration from North Africa into Spain

CIA World Fact Book
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Communications

• 1.3 million land lines
• 12.4 million cell phones
• 2,500 internet hosts
• 4.6 million internet users
• 35 television stations

Source CIA Factbook
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Internet Costs per Month

• (Annual GDP per capita 4100)
• Menara ADSL 256 kbps (around 25) 300 per year
• Menara ADSL 512 kbps (around 45) 540 per year
• Menara ADSL 1 Mbps (around 60) 720 per year
• Menara ADSL 2 Mbps (around 70) 840 per year
• Menara ADSL 4 Mbps (around 95) 1140 per year
• Most individuals cannot afford their own
  personal internet service in their homes.

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Computer Usage

• 47 of people use a computer at home, work or
  elsewhere on at least an occasional basis (US
  76)
• 58 of men use a computer, 36 of women use
  computers

Truly a World Wide Web GLOBE GOING DIGITAL 2005
Pew Global Attitudes Survey
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IT SWOT Analysis
Strengths Very good telecom infrastructure compared to regional countries Government initiatives to promote IT Potential availability of local venture capital after discovery of oil reserves Relaxed FDI regulations Growing internet culture Solid mobile platform High mobile phone penetration Maroc Telecoms as a pioneer of IT development   Weaknesses Shortage of educated and skillful workforce Weak banking system to support e-commerce activities (payments, credit cards) E-commerce (8 use, 2001) Software piracy issue Small scope of IT projects Small PC penetration (high costs) Lack of infrastructure in rural areas where most of population Enforceability of laws and regulations Maroc Telecom monopoly position
Opportunities          Additional liberalization deregulation of telecom         Good relations with both E.U. and U.S.         Higher enrollment to IT and engineering programs         Decent higher education institutes         Bilingual culture (Arabic and French) Threats          Conflict with neighboring Algeria about Western Sahara (where most oil reserves is supposed to be)         Conflict with Spain about illegal immigrants and fishing zones         Egypt and South Africa attracting FDI         Low literacy rates
Courtesy American University ICT Landscape in
Morocco
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Economy as it relates to IT

• Reducing restraints on private activity
• GDP- 135 billion (2005)
• GDP per capita- 4,100 (2001 est.)- CIA factbook
• GDP real growth rate 1.7 (Inflation 1)
• Unemployment rate 20 in urban areas
• Dirham now fully convertible for account
  transactions
• 2000 sale of mobile telephone license
• Partial privatization of state-owned Telcom Co.

CIA World Fact Book
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Economy as it relates to IT

• Inability to promote small and medium businesses
• Membership in IMF, World Bank, (WTO) and Paris
  Club
• 2004 signed free trade agreement with the US
• The U.S.-Morocco FTA eliminated tariffs on 95 of
  bilateral trade in consumer and industrial
  products with all remaining tariffs to be
  eliminated within nine years
• Has a free trade agreement with the EU
• Selling government shares in the state telecom
  company

CIA World Fact Book
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Investment Opportunity 1

• E-commerce Website to sell Moroccan Berber
  Blankets

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E-Commerce Definitions

• E-Commerce The buying and selling of goods and
  services on the Internet, especially the World
  Wide Web. a.k.a. 'e-business.
• E-Retailing Online retail selling.

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IT SWOT Analysis
Strengths Very good telecom infrastructure compared to regional countries Government initiatives to promote IT Potential availability of local venture capital after discovery of oil reserves Relaxed FDI regulations Growing internet culture Solid mobile platform High mobile phone penetration Maroc Telecoms as a pioneer of IT development   Weaknesses Shortage of educated and skillful workforce Weak banking system to support e-commerce activities (payments, credit cards) E-commerce (8 use, 2001) Software piracy issue Small scope of IT projects Small PC penetration (high costs) Lack of infrastructure in rural areas where most of population Enforceability of laws and regulations Maroc Telecom monopoly position
Opportunities          Additional liberalization deregulation of telecom         Good relations with both E.U. and U.S.         Higher enrollment to IT and engineering programs         Decent higher education institutes         Bilingual culture (Arabic and French) Threats          Conflict with neighboring Algeria about Western Sahara (where most oil reserves is supposed to be)         Conflict with Spain about illegal immigrants and fishing zones         Egypt and South Africa attracting FDI         Low literacy rates
Courtesy American University ICT Landscape in
Morocco
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Proposal

• Host a website where small and medium businesses
  can sell Berber blankets rugs
• Why Berber blankets rugs?
• Indigenous to the Berber population in the
  Moroccan region
• Quality is known and appreciated worldwide
• Not easily imitated Sustainable Competitive
  advantage
• Just a jumping off point for other retail business

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Proposal

• Why e-commerce?
• Reduce costs and allow more flexible production
  methods.
• Higher returns for retailers who will no longer
  need a foreign distributor or retail space
• Providing virtual shopping enhancing the ability
  of customers to browse products quickly and
  easily
• Customers can compare prices easily
• Increasing market competition
• Raising productivity growth and the development
  will lead to new job creation
• Increased government revenues through more
  taxable income.
• three conventions meant to promote e-commerce in
  Morocco were signed in November 22th, 2000
  between the government, cooperatives and private
  operators

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Current e-tailing sites

• http//www.shop.moroccantreasures.com
• http//www.maroctribal.com/
• http//www.midelt.com/

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How?

• Host website in Rabat.
• Hire local webmasters, sales team, execution team
  and call center
• Take advantage of low cost labor
• Take advantage of educated workforce
• Sales team should be of Berber descent, will help
  to reduce cultural barriers
• Invite local businesses to a free conference to
  explain the benefits of e-commerce

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Finance

• We will charge a small commission on each retail
  unit sold
• Local Government- King has stated that countrys
  number one goal is to increase (FDI) in small
  medium enterprises
• The WTO
• We will sell ad space on the site
• Possible partnership with Google
• We will look to the World Bank for support
• UNCTAD (United Nations Conference on Trade and
  Development)

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Critiques/Challenges

• Cultural Barrier Arab vs. Berber
• Corruption Its who you know
• Logistics Setting up retailers in rural areas
• E-readiness Are cultural groups ready
• TAM Issues with perceived ease of use
• Meeting Demand Slow handmade process
• PC Penetration 50 of pop. use a computer
• Internet Penetration
• Government legislation Continued privatization
• Education in ICT Seminars needed to teach

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Investment Opportunity 2

• E-commerce Websites to advertise tourist sites
  in Morocco

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IT SWOT Analysis
Strengths Very good telecom infrastructure compared to regional countries Government initiatives to promote IT Potential availability of local venture capital after discovery of oil reserves Relaxed FDI regulations Growing internet culture Solid mobile platform High mobile phone penetration Maroc Telecoms as a pioneer of IT development   Weaknesses Shortage of educated and skillful workforce Weak banking system to support e-commerce activities (payments, credit cards) E-commerce (8 use, 2001) Software piracy issue Small scope of IT projects Small PC penetration (high costs) Lack of infrastructure in rural areas where most of population Enforceability of laws and regulations Maroc Telecom monopoly position
Opportunities          Additional liberalization deregulation of telecom         Good relations with both E.U. and U.S.         Higher enrollment to IT and engineering programs         Decent higher education institutes         Bilingual culture (Arabic and French) Threats          Conflict with neighboring Algeria about Western Sahara (where most oil reserves is supposed to be)         Conflict with Spain about illegal immigrants and fishing zones         Egypt and South Africa attracting FDI         Low literacy rates
Courtesy American University ICT Landscape in
Morocco
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Proposal

• Design and host websites that tout the benefits
  and experiences at Moroccan tourist sites
• Make money by taking a percentage of revenue for
  new hotel bookings
• Why tout tourism?
• Countrys third largest source of revenue
  trailing only phosphates and money transfers.
• Coastline on N. Atlantic Ocean and Mediterranean
  Sea
• Mountains and desert inland
• Casablanca, popular resort destination
• Current sites are poorly designed and maintained

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Current Tourism Sites
http//www.emorocco.org/main.htm http//www.visit
morocco.com/ http//www.morocco.com/
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How?

• Host website in Rabat
• Hire local webmasters and designers
• Take advantage of low cost labor
• Take advantage of educated workforce
• Invite local businesses to a free conference to
  explain the benefits of e-commerce

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Finance

• We will charge a fee or percentage of sale for
  each new hotel room or tour booked on our site
• Make additional money by taking advertising
  revenue from hotels and tours to feature them on
  the site
• Possible grant or money from the government as
  part of their 2010 project
• Set to double the number of hotel beds in Morocco
  by 2010 to 250,000

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Critiques/Challenges

• Language Barrier French Spoken Predominantly
• Need to translate website into multiple languages
  based on target tourist countries
• IT infrastructure in Morocco might not provide
  for reliable hosting

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Combining Both Opportunities

• One website to promote both E-retailing and
  E-tourism in Morocco
• Economies of scale reduces implementation costs
• Boost your web traffic to both sites
• Similar concept for 50 least developed countries
  (LDCs) has been proposed by UNCTAD, called
  e-tourism initiative 2007 http//etourism.unctad.
  org

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Questions?