Mexico- The

Next
Destination For
Pathao?
Mexico- The Next Destination For
Pathao?

Prepared for:

Md. Asif Gazi

Lecturer
North south University

Prepared By:

Team Exodus
Sayeed Al Mamun- 1612311030
Rabbi Al Rayhan- 1621168630

Page | 2
 Letter of Transmittal

Dear Mr. Asif

We are submitting the report entitle “Mexico- The next destination for Pathao?”, which
will help you to take decision whether to expand to Mexico or not.

This report examines the problem and all the opportunities at Mexico. At the same time, we
have also researched about the geographic and economic factors as well. The climate and
customs has been thoroughly explained. We have also calculated an initial budget for your
convenience.

In light of these findings, the report identifies several strategies that can be implanted to make
Pathao stand out from the rest of the competitors.

I hope you find this report satisfactory.

Sincerely yours,

Team Exodus.
25th August, 2019.
Table of Contents
Letter of Transmittal....................................................................................................................................3
MEXICO A BRIEF INTRODUCTION................................................................................................................5
HISTORY.......................................................................................................................................................5
GEOGRAPHY................................................................................................................................................6
People psychology and culture................................................................................................................7
Currency of MEXICO....................................................................................................................................7
Demographic Information...........................................................................................................................8
Customs.......................................................................................................................................................9
Languages of Mexico...............................................................................................................................9
Religions of Mexico..................................................................................................................................9
Values of the Mexican People...............................................................................................................10
Mexican food.........................................................................................................................................11
Mexican arts..........................................................................................................................................12
Mexican clothing...................................................................................................................................12
Holidays and celebrations......................................................................................................................12
Climate......................................................................................................................................................13
Economy....................................................................................................................................................14
Competition...............................................................................................................................................16
Organizational Strategy.............................................................................................................................18
Advertising Strategy..................................................................................................................................18
SWOT.........................................................................................................................................................20
Budget details............................................................................................................................................20
Bibliography...............................................................................................................................................21
MEXICO
A BRIEF INTRODUCTION

Mexico is a Federal Constitutional Republic in North America. In the North it is bordered with
USA, the south and West side is bordered with the Pacific, the East side by the Gulf of Mexico
and the Southeast by Guatemala, Belize and the Caribbean Sea. Mexico is the fifth largest
country of the American continents and the 13th largest independent nation in the world. With
a population of 113million, it is 11th most populous and most Spanish speaking countries.
Mexico City is the capital and also the Federal District. (SME)

HISTORY
Mexico City was founded in 1324 and after a century it became the dominant city of Aztec triple
alliance. Even after the Independence in 1821 it became the largest and most important City of Mexico.

Mexico City is the most populous City of Mexico. The estimated population of the City is 8,918,653
(2016). As this is the most populous City it is a good option for business anyways. This is also the largest
Spanish speaking City in the continent. Spanish people are very adapting in the terms of new things.
Pathao will be a new thing for them.

The City is full of historical monuments and places Zocalo, The International Museum, Memplo Mayor,
the great pyramid of Tenochitlan and many more. So a huge number of tourists throughout the world
visit the places. In 2018 the number of international traveler was 2.4 million.

 The cities are filled with richness of historical places. Local people also travel a lot. There are
many monumental locations to visit and there is even an increase in tourism. After you check
out of the airport, you would always want a comfortable means of transportation. Finding a taxi
can be hassle, trains are crowded and buses gets stuck at traffic which are usually non-AC.
Pathao can be a viable option in moving tourists from point A to point B with ease. Just with a
press of a button, you can find a comfortable ride after a long hassle of the flight. Pathao can
penetrate that sector quite easily if they make sure to get control of the nearby areas of the
airport by sending more drivers there.
GEOGRAPHY
Mexico is located in one of the Earth’s most dynamic tectonic areas. It is a part of the
circum-Pacific “Ring of Fire”—a region of active volcanism and frequent seismic activity.

Geography has a very profound influence on Mexico City. This is a very high Land of Mexico surrounded
by mountains. The geography of the City is quite resourceful and it drives the people on agricultural. It is
similar to Bangladesh. For the climate of The City people are very friendly and happy go Lucky.

The roads and highways are also suitable for bikes and cars. As it is the heart of the country a new
business like Pathao can make their position in business.

 Pathao can be suitable for the Mexico City, but with all these tectonic areas, other cities might
be dangerous for business. Mexico City has a great road system, with enough flyovers and lane
system. But the city is over populated and so the public transports usually is tiresome to use
after a long day at the office. Pathao can offer some sort of discounts during the office hours to
allow people to travel comfortably and safely.
People psychology and culture
In Mexico psychology and culture is like their custom tradition beliefs roles and relationships have social
interaction as their scenario. Basically in Mexico, the people have certain patterns of behavior and
people learn it from different areas such as the family, friends, the community, and some subjective and
objective way. In Mexico, the Mexican people’s interpersonal relationship is the most important part
of life. Mexican people believe in external control. Also they are less distressed. It also associated with
belief in external control but also it decreases anxiety.

Currency of MEXICO
The Mexican Peso is the currency of MEXICO. It is the 8 th most traded currency in the world and the
highest traded in the South America. It is useful because it is easy to exchange in US dollars, traveler’s
cheques and notes into local currency. The Mexican Pesos were the first to use the “dollar” sign
even before the USA.

Also UK debit or credit card are widely accepted for payment and in ATMS. The currency code for peso
is MXN. Sometimes things are cheaper in MEXICO like if someone earn money in USA and spent it in
MEXICO then it is cheaper. But earing in MEXICO and then spent it there is not so much.

 The Mexicans love to use the bank notes more than using Debit or Credit or digital payment
systems. The conversion rate is also cheaper and even accepted in Southern border cities of
USA. Most of the people don’t have bank accounts and love to pay in cash. This is
because in Mexico, drivers and passengers are often held at gun point, taken to nearest ATM,
robbed and then let them go. They are concerned about their safety. If Pathao concentrate on
cash payment system more and add some sort of value return system within the app, they can
easily become top choice of the country.
Demographic Information
Mexico’s population is about 126 million in 2019 and ranks as 10th most populated
country in the world. It is also the most populous Spanish speaking country and 3 rd most
populous in North America.

The most populous city in the country is Mexico City with a population of 8.9 million and its
metropolitan area is also most populated with 20.1 million. Approximately 50% of the
population lives in one of the 55 large metropolitan areas in the country.

In total, about 78.84% of the population of the country lives in urban areas, meaning that only
21.16% live in rural areas.

 Since most of the people prefers living in the Urban areas, and also considering the
population fact is so compact in the metropolitan areas. The traffic can be untolerable
especially during office hours. Pathao can concentrate their Bike service more in Mexico
City. This will allow people to go back to their home fast after a stressful day at office.
They can avoid the traffic compared to other means of transport. This will allow Pathao
Bike to be loved to the Mexican, especially, if some reward system is implanted during
rush hours.
Customs
The culture of Mexico has undergone a tremendous transformation over the past few decades
and it varies widely throughout the country. Many Mexicans live in cities, but smaller rural
communities still play a strong role in defining the country's collective vibrant community.

Mexico is the 12th most populous country in the world, with over 123 million people in a July
2016 estimate, according to the Central Intelligence Agency's World Factbook. According to the
CIA, Mexico consists of several ethnic groups. The mestizo (Amerindian-Spanish) group
accounts for 62 percent of the population. Amerindian people or predominantly Amerindian
people account for 21 percent, while 10 percent of the population is white. These groups create
a culture that is unique to Mexico.
Here is a brief overview of Mexican culture.

Languages of Mexico
The overwhelming majority of Mexicans today speak Spanish. According to the CIA, Spanish is
spoken by 92.7 percent of the Mexican population. About 6 percent of the population speaks
Spanish as well as indigenous languages, such as Mayan, Nahuatl and other regional languages.
Indigenous Mexican words have even become common in other languages, including English.
For example, chocolate, coyote, tomato and avocado all originated in Nahuatl.

Religions of Mexico
"Much of Mexican culture revolves around religious values and the church, as well as the
concept of family and inclusiveness," said Talia Wagner, a marriage and family therapist in Los
Angeles. Around 82 percent of Mexicans identify themselves as Catholic, according to the CIA,
although many have incorporated pre-Hispanic Mayan elements as part of their faith. Christian
denominations represented include Presbyterians, Jehovah's Witnesses, Seventh-Day
Adventists, Mormons, Lutherans, Methodists, Baptists and Anglicans. There are also small
communities of Muslims, Jews and Buddhists.

 Being a Spanish speaking majority, Pathao would need to properly check the drivers
they hire. They should hire people with Spanish speaking capability as well as have
enough knowledge about the City. They should also be able to at least communicate
in English as well. Since most people live in the city, Pathao should start in the city for
a better chance of success. Pathao can also add a translation options within the app
for even better communication between the driver and the passengers.
Values of the Mexican People
Family is one of the most important elements in Mexican society, according to History.com.
Especially outside of cities, families are typically large and Mexicans are very conscious of their
responsibilities to immediate family members and extended family such as cousins and even
close friends.
Hosting parties at their homes plays a large part of Mexican life and making visitors feel
comfortable is a large part of the values and customs of the country.

"Family units are usually large, with traditional gender roles and extensive family involvement
from the external members who assist one another in day to day life," Wagner told Live
Science. There is a strong connection among family members. "Parents are treated with a high
degree of respect, as is the family in general and there may be constant struggle, especially for
the growing children between individual wants and needs and those wants and needs of the
family," added Wagner.

On large event in a Mexican family is the Quinceañera. This is a celebration of a young lady's
15th birthday. It signifies the girl's journey from childhood to womanhood. The party includes an
elaborate dress for the girl of honor, food, dancing, friends and families. Before the party there
is often a mass at the girl's church. The girl is accompanied throughout the festivities by her
Damas (maids of honor) and Chambelánes (chamberlains), according to Encyclopedia
Britannica.

 The Mexican are family people and very festive. When starting at Mexico they have to
look into the fact of giving enough holidays and festive bonus to both drivers and try to
attract customers in using Pathao by giving special bonuses for using Pathao on those
occasions. This will also open up an opportunity to expand the Food and Parcel service
maybe, as it will be used a lot. Pathao Parcels is a viable option in this sector. Since there
are many holidays, and Mexican loves to spend times with family, there will be lots of
online shopping and gift sending. Pathao can attract this sector with discounts and
offers and can grab this empty market.
Mexican food
Mexican cuisine varies widely between regions, as each town has its own culinary traditions,
according to "Mexico For You," a publication of the Mexican Cultural Institute of Washington,
D.C. Tortillas and other food made from corn are common everywhere, though, as are pepper,
tomatoes and beans. Rice is also a staple, according to History.com. Many foods that originated
in Mexico are popular worldwide, including avocadoes, chocolate and pumpkins.

Mexico is known for its tequila, which is made from agave cactus that is well suited to the
climate of central Mexico. Soda is a very popular drink in Mexico, as the country has a well-
developed beverage industry.

 They are fond of many delicacies and often loves to hang out with friends. Pathao Food
can bring changes to their need and can cause an impact in the lifestyle if set-up
properly. But, they should enhance their structure and even start to deliver alcohol
bevarages and groceries. UberEats is the only dominant one right now, but Pathao can
penetrate with a little tweak in their system like mentioned above.
Mexican arts
Clay pottery, embroidered cotton garments, wool shawls and outer garments with angular
designs, colorful baskets and rugs are some of the common items associated with Mexican folk
art. Millennia-old traditions continue in silver-smithing, mosaics, textiles, pottery and basket-
weaving, according to "Mexico For You."

The country is closely associated with the Mariachi style of folk music, according to "Mexico For
You." Originated in the southern part of the state of Jalisco sometime in the 19th century, it
involves a group of musicians — playing violins, guitars, basses, vihuelas (a five-string guitar)
and trumpets — and wearing silver-studded charro suits and elaborate hats. "La Cucaracha" is a
well-known Mariachi staple.

Two of Mexico's most famous artists are Frida Kahlo and Diego Rivera. Their paintings include
vibrant colors and depictions of life in Mexico. Rivera was a pioneer of Muralism, a movement
that used expansive wall art to educate the people.

Mexican clothing
Many may not think of Mexico as a place that fosters high fashion, but many fashion designers
hail from Mexico, such as Jorge Duque and Julia y Renata. There is also a Mexico Fashion Week.
In the cities, fashion in Mexico is influenced by international trends, so the typical urban
Mexican dresses similar to people in Europe and the United States.

Traditional Mexican clothing for women includes a sleeveless tunic-like dress called a huipil,
according to Don Quijote Spanish School. Originally, these cotton dresses were made very
simple with garnishes of color. However, traditional Mexican women´s clothing now regularly
includes lots of ornate embroidery, often including images and patterns that have symbolic
meaning attached to them.

One distinguishing article of traditional men's clothing is a large blanket cape called a sarape.
Boots are also a wardrobe staple. The charro suit, with its origins as the outfit worn by Mexican
cowboys, is most associated with Mariachi musicians. The suit is also an acceptable substitute
for a tuxedo at formal events in Mexico. The charro suit includes the sombrero, a wide-
brimmed hat that provides plenty of shade.

Holidays and celebrations

The Feast of Our Lady of Guadalupe, which is celebrated on Dec. 12, is a major Mexican holiday
celebrating the appearance of the Virgin Mary to an Indian man in the first years of Spanish
rule. She is the patron saint of the country. This is followed closely by Posadas, a nine-day
celebration in which people re-enact Mary and Joseph's journey to Bethlehem to search for a
place to stay. Families go from door to door carrying candles and singing, asking for shelter until
the owners open the door, at which point the party begins.
The Day of the Dead (Día de los Muertos), celebrated on Nov. 2, is a day set aside to remember
and honor those who have died, according to the University of New Mexico. Carnival is also
celebrated in many communities throughout Mexico to mark the period before Lent.

Independence Day, marking the country's separation from Spain in 1810, is celebrated on Sept.
16. Cinco de Mayo, which marks a Mexican military victory over the French in 1862, is
more widely celebrated in the United States (as a beer promotion) than it is in Mexico.

 Apart from these, there are many other holidays, which Mexican people love to
celebrate with families. Pathao should take all those into consideration before starting
business as both drivers and users would expect every company to respect the rituals
and occasions to be successful. Pathao can offer special promotions for both parties in
those holidays and can gain the love of Mexican people which Uber has so far failed to
do.

Climate
Mexico City, the capital of Mexico, (Mautner). Rainfall is concentrated mainly in the summer
months, where it exceeds 4inches per month from June to September, and it is moderate in
May and October.
The winter, which stays from November to February, is cold at night, and daytime temperature
are pleasant. Spring is the warmest during the day with huge amount of sunshine. Summer is
the wettest season, rain showers occur almost daily. And autumn is short only lasting October.

The best time to visit Mexico City is the dry season, November to April. Owning to the
remarkable temperature range between night and day, in the day, in the dry season, it’s
better to dress in layers, with warm clothes for the evening and light for the day. Sunscreen, a
hat and sunglasses can be useful as well.

 The weather can be very tricky. When it rains it is going to rain cats and dogs. The night
is going to be chilly while days are rather pleasant. Pathao Car can easily do business as
the weather suggests there is a need of proper transportation system because of the
weather demand. If they can start with “UberPool” like service, they would be
even more profitable, as many different people can travel together.
 Pathao Bike can also do stunts like offering raincoats or umbrellas during the raining
time to both Riders and passengers. They can also offer the first ride in the rainy season
as completely free. This way everyone would move towards Pathao.

Economy
Mexico City is one of the most important economic centers of Latin America. The city produces
around 21.8% GDP of the country. Mexico City is ranked as the eighth-richest urban
agglomeration in the world.
The city is home to the headquarters of the country’s largest bank, insures as well as
many international finance service companies for Latin America. The house of Stock Exchange
is also there.

The main industries of the city are related to construction and the production of iron and steel,
textile and yarn, plastics, furniture and cement. The tourism industry also generates some
employment opportunities.

In the year 2002, the city had a score of 0.915 in the Human Development Index, and its GDP
is all set to increase twofold by 2020. The people residing in the city are big spenders; as a
result, the prestige and luxury goods industry has bloomed. (MexicoCity)

Mexico City is the center for many industries as well as arts, education and culture. Tourism
sectors are also growing rapidly, playing an important role in the economy of Mexico.

 With all the important and different sectors situated in the City, like School, factories,
offices, etc there is a rush hour during the start and end of office time. This eventually
increases the need of a proper comfortable and secure transportation system. They
also love luxury, meaning they prefer Taxi-like service more compared to trains and
buses. Pathao can be a viable option with the right cost structure.
Competition
There are lot of possible level of competition in the international market. In possible level of
competition in the international market. The first possible level of competition in the international
market is Uber. Because Uber and Pathao is kind of same service. So Uber is one of the possible level of
competition in the international market. And also Uber is internationally developed more than Pathao.

Uber is possible level of competition in the international market because Uber and Pathao both have
similar service. Uber is ridesharing app for fast, reliable, rides in minutes and also Pathao is ridesharing
app for fast, reliable rides in minute. So both are similar service, and also Didi is a possible level of
competition for Pathao.

There is another competitors for Pathao. Like now Didi is possible level of competitors for Pathao. There
are another competitors for Pathao that is 99 taxi. So basically Uber, Didi and 99 taxi is possible level of
competition for Pathao in the international market. Didi also a mobile leading services and Didi launches
in Chile and Columbia. Didi is a world leading multi modal transportation platform. So Didi and 99 taxi is
possible level of competition in the international platform. Didi is famous in international market,
that’s why it is the possible level of competition in the international market and another one is 99 taxi.

About 99 taxi. 99 taxi and Didi both transportation service mission and vision is same and also both
mission and vision is similar to Pathao.so these are the possible level of competition in the international
market for Pathao. Pathao can face lots of competition with Didi and 99 taxi. With Pathao competitive
rates even when you ride share with car plus that is affordable. I also mentioned here that which are the
possible level of competition in the in international market.

Basically Didi and 99 taxi is the possible level of competition in the international market. Uber is also the
competitors of Pathao in the international market. These are the possible level of competitors in the
international market because these are now existing service in the international market.

 There are many competitors in Mexico. For ride-sharing service the toughest are: Uber, Didi,
99Taxi. For food: UberEats, Didi Food, Rappi. For parcels: Rappi.
Accoridng to this info, Pathao has a good chance of penetrating the Parcel market. Mexican
people love to grocery shop almost daily. However, they are one of the luxury loving people.
Pathao can use this opportunity to enter this sector with proper analytic and become successful.
Organizational Strategy
With competition high and tight in the Mexico City market, it is tough for a new entrant. With
already Uber and Didi controlling the market, it will be tough for Pathao. But, it is not
impossible. Mexico is one of the most prized and profitable markets for a ride-sharing service.
With such a large population and beautiful roads and a near-perfect climate system, it is a
haven for ride-sharing services. And Uber has been the sole entity to enjoy it, until Didi came in,
along with other local companies.

Pathao would need to dive in straight to the source if they want to gain control. A strategy that
Didi used to penetrate the market when they initially started. (Love) They would need to send
employees to take rides, incognito mode, with Uber and Didi services and gather all sorts of
information and find the weakness in their system. Later use all those weaknesses against the
big players.

They should also use the Pathao Bike service system in their plan. The city traffic could ease up
with bike-sharing service just like in Bangladesh. And as a food lover nation, Pathao Food can
also gain fame and win the hearts of the Mexicans.

One other way is to hire the existing or ex-employees of Uber and Didi to gather competitive
advantage as soon as they enter it. Even if they have to pay them to double the wages it will be
worth it for the long term.

And the last possible way to win the market share is to offer relatively cheap price compared to
the competitors and also pay well enough the drivers to keep them away from exiting Pathao.
They should use social media to their advantage and offer users with enough discounts and
referral codes. They can also add some sort of point system like Uber, with which they can keep
their old customers for the long term.

Advertising Strategy
A great business and ideas can even failed lacking of marketing process. Having a good logo,
significant logo, name is important but the significance should reach to the people and that’s
why marketing needs to be effective. To do business in Mexico City some advertising strategy
may help Pathao”
Early rider facilities: Word of mouth is always the most influential marketing process. So if
Pathao give some extra facilities to the early adopter it will be a great marketing. Like give free
ride to the first time rider.

Referrals: If early rider can able give free rides to their friends by referring will be a good
strategy. So the others can learn about Pathao and use it. That’s how a business grow
and reaches to the customer. Having a referral program can be also helpful

Reviews: Reviews are very important, if it is good it can be very helpful but if it is bad it will
hamper the business. The drivers should be trained and very well behaved with the customers
for good reviews.

Stunt: They can launch new program, giving offer for millennial and discount on various event.
The era is millennial era, so they should be targeted. As Mexico City is a travelers place the
travelers and tourists are a great number of customer. If some discount and facilities can
provide for them it will be a great marketing hype.

Partnership: Mexican people are very colorful and enthusiastic, there are a huge amount of
local brand which they loved, so if Pathao can make some marketing relationship with them it
will be helpful.

Loyalty program: A loyalty program will impress the people of Mexico. Like VIP customer who
will use Pathao regularly will be awarded and given discount, after 100 rides the customer will
get a gift after 200 they will get VIP card and all. The emotional people of Mexico City will love
this kind of program.

Adapting their culture: Mexico is a colorful country with colorful minded people, they have
many occasions. so on that they Pathao can give them discount, like on new year celebration,
January 6(the corning of kings), Shrove Tuesday and Eastern week , March 21( the birth of
Jureaz), independence day etc.
SWOT

Strength Weakness

 Geographic Proximity  Budget

 NAFTA advantages
 Climate
 Customs
 Culture

Opportunities Threat

 Economy  Competition
 Currency  IP protections
 Advertisement
 Organizational Strategy
 Maturing Economies in Latin America

Budget details
If Pathao wants to set up their operations in Mexico than would have to incur the following
expenses

• Rent for 3 room apartment 22,500MXN per month.( BDT 93757.23 )

• Average salary 12,500 MXN. ( BDT 52087.35 )
• Price to income ratio 14.81.
• Business setup cost approximately with all legal and notary fees are 50,000 MXN.( BDT
208349.41 )
 • Marketing and promotional activities with rider addition and training and maintaining
other services will cost 130,000 MXN approximately.( BDT 541708.46 )
In addition there will be some miscellaneous expenses which are needed to be taken care of
thought that depends on their needs.

Bibliography
Mautner, C. R. (n.d.). Britannica. Retrieved from Encyclopaedia Britannica:
https://www.britannica.com/place/Mexico-City/People

MexicoCity. (n.d.). Mexico Economy. Retrieved from MexicoCity.com:

https://www.mexicocity.com/v/economy/

SME, G. A. (n.d.). Brief introduction of Mexico. Retrieved from G A S M E:

http://www.globalsmes.org/news/index.php?func=detail&detailid=1030&catalog=39&lan=en&search_k
eywords=

https://en.wikipedia.org/wiki/History_of_Mexico

https://eng.uber.com/tag/budget/

https://www.livescience.com/38647-mexican-culture.html

https://www.history.com/topics/mexico/distrito-federal

http://www.city-data.com/world-cities/Mexico-City-History.html

https://www.mexicocity.com/v/geography/

https://www.facebook.com/didiservice/