Moroccoالمغربية المملكة

Al-Mamlaka al-MaghribiyaKingdom of Morocco

Chadwick MeyerStephan Sepanski

Craig Wehler

“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

GeographyCapital: 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

History

8000BC-earliest known inhabitants the Berbers

670AD- Arab expansion and Berbers adoption of Islamic ways

1771-Morocco 1st nation to recognize the US1956-Independence from France and Spain1970-Western Sahara Annex2006-Celebration of 50 years of

IndependenceCourtesy Wikipedia

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

Demographics

Population: 33,241,259 (July 2006 est.) Age: 0-14 31.6%

15-64 63.4%65+ 5%

Average Age: 23.9 yearsGrowth Rate: 1.55%Ethnicity: Arab-Berber 99%, Other .7%, Jewish .2%Religions: Muslim 98.7%, Christian 1.1%, Jewish .2%Language: Arabic, Berber Dialects, FrenchLiteracy: 51.7%; 64.1% Male, 39.4% Female

CIA World Fact Book

Hofstede’s Dimensions

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

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

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

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

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.

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 WebGLOBE GOING DIGITAL2005 Pew Global Attitudes Survey

IT SWOT AnalysisStrengths• 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 Telecom’s 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

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

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

Investment Opportunity # 1

E-commerce: Website to sell Moroccan Berber Blankets

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.

IT SWOT AnalysisStrengths• 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 Telecom’s 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

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

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

Current e-tailing sites

• http://www.shop.moroccantreasures.com

• http://www.maroctribal.com/

• http://www.midelt.com/

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

Finance• We will charge a small commission on each

retail unit sold• Local Government- King has stated that

country’s 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)

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 computerPC Penetration: 50% of pop. use a computer• Internet Penetration: Internet Penetration: • Government legislation: Continued privatizationGovernment legislation: Continued privatization• EducationEducation in ICT: Seminars needed to teach in ICT: Seminars needed to teach

Investment Opportunity # 2

E-commerce: Websites to advertise tourist sites in Morocco

IT SWOT AnalysisStrengths• 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 Telecom’s 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

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?– Country’s 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

Current Tourism Sites

http://www.emorocco.org/main.htm

http://www.visitmorocco.com/

http://www.morocco.com/

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

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

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

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

Questions?