PAKISTAN: ePLANET VENTURES CASE STUDY
Asad has many choices to make operating business in Pakistan and its environs/neighbors. Although political instability is high, many factors favor business establishment and operation. Culture of Pakistan is among the major empidiments for ePlanet to efficiently operate a business.
There are various strategic choices that are at the disposal of ePlanet to venture in. Earlier on as Asad had completed his studies at London school of economics, he identified that there were green pastures in business operation in the areas communications and wireless, media, advertising, computing software, and consumer internet among others. These areas were still a ...view middle of the document...
There was also favorable cost-base and talent and good culture.
We also find that the business environment in Pakistan had changed to better. Aggressive tax policies had been enacted; the public enterprise had been restructured and banking sector’s terms improved. Liberalization and deregulation of business in Pakistan had favored its business environment hence Pakistan had emerged a good destination for business described as “ease of doing business, starting a business and protection of investors.” Additionally, the Private Equity and Venture Capital Act of 2007 had made Pakistan a good place for business by protecting investors and offering full tax exemption.
Furthermore, there was a large talent pool that was 30-40% cheaper in Pakistan compared to China and India. Pakistan had good relations with the neighbors; China and UAE that ePlanet could expand to with ease.
On the other hand, there are also disadvantages that will ePlanet is likely to face if it invests in a business operating in Pakistan. Despite the numerous advantages of operating a business in Pakistan, several factors were still unfavorable in the country. In the first place, political environment was very volatile and unpredictable. There was military dictatorship characterized by high rate of turnover of the prime ministers who rarely completed a full term in office. Additionally, it was difficult to scale up for sustainable growth in a business. There...