2. MARKET ANALYSIS
2.2. Querétaro and the Language Learning Industry
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It seems to be a divorce between the Mexican and American economies.
Thus, two potential solutions circulate among the public opinion. The first consist in strengthening the domestic market. In other words, it is needed that Mexico consumes more from the local industries to detonate new business opportunities. The second solution pretends to promote the diversification of the Mexican international commerce, taking greater advantage of the existing commercial treaties, and seeking for new ones. Countries like Japan, Germany and China have reached to Mexico in a display of support.
More specifically, Mexico and China have built bridges from 2001 to 2006 to facilitate the creation of binational committees that will establish permanent dialogue mechanisms15. Despite all the complications and tribulations, the decision of keeping an open dialogue between Mexico and China provides certain degree of certainty, necessary to face the challenges brought by the Trump Administration in the United States. The Sino-Mexican relationship is reaching a stage of maturity.
Not having a proper player for the language training industry in Mexico that specializes in the instruction of Chinese language, given the socio-politic moment we are going through, represents an opportunity for our company to successfully stablish and more importantly, to thrive in the Mexican Market.
2.2.
Querétaro and the Language Learning Industry
Querétaro, officially Estado Libre y Soberano de Querétaro16, is divided into 18 municipalities.
15 Cornejo, R., “México y China: Diplomacia, Competencia Económica y Percepciones,” International Forum, Vol. 48, No. 1/2 (191/192) (Jan. – Jun., 2008), pp. 330-351.
16 Free and Sovereign State of Querétaro
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Its capital city is Santiago de Querétaro. It is strategically located in North-Central Mexico, in a region known as Bajío. It is bordered by the states of San Luis Potosí to the north, Guanajuato to the west, Hidalgo to the east, Estado de México to the southeast and Michoacán to the southwest. Santiago de Querétaro, known simply as Querétaro, is the capital and largest city of the state of Querétaro.
Querétaro as a city represents an excellent opportunity for business and, particularly, Chinese language institutions. As it has been mentioned previously, education level is determining when accessing to another language income, population is more prone to learning a language different from Spanish17. Population in Querétaro seems as an ideal customer for Chinese language, the state occupies an important place in competitiveness and innovation.
Querétaro is a state with a higher level of education. According to IMCO (Mexican Institute for Competitiveness), in their competitiveness study of the states in Mexico, 25% of the schools in Querétaro were graded as “GOOD” or “EXCELLENT”18 in the test PLANEA applied by the Mexican Ministry of Education. And in the same test, Querétaro has around 30% of the students in the country graded as “GOOD” or “EXCELLENT”19 in the individual grades.
2.2.1. Economy
The City of Querétaro has repeatedly been recognized as the metropolitan area with the best quality of life and as one of the safest cities in Mexico and as the most dynamic in Latin America.
It is a strong business and economic center and a vigorous service city that is experiencing an
17 Consulta Mitofsky. ¿Habla usted otro idioma además del español? 2015. www.consulta.mx/¿Habla usted otro idioma además del español?
18 Mexican Institute of Competitiveness. State Competitiveness Index. Inclusive Society, educated and healthy chapter. Quality School sub-index.
19 Mexican Institute of Competitiveness. State Competitiveness Index. Inclusive Society, educated and healthy chapter. Academic Performance sub-index.
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ongoing social and economic revitalization. Querétaro has seen an outstanding industrial and economic development since the mid-1990s. Querétaro metropolitan area has the 2nd highest GDP per capita among Mexico's metropolitan areas with a little less than 20,000 USD2021. The city is the fastest-growing in the country, their economy is based on IT and data centers, logistics services, aircraft manufacturing and maintenance, automotive and machinery industries, and the production of chemicals and food products. The region of Querétaro also has a rapidly growing vineyards agriculture22. Wine production in Querétaro is now the second largest in Mexico after that of the Baja California region.
All this has caused the city and the metropolitan area to attract many migrants from other parts of Mexico and the world. Querétaro is the host for major corporations such as Bombardier Aerospace, Kellogg's, Samsung Electronics, Daewoo, Colgate-Palmolive, Harman International Industries, General Electric, Michelin, Tetra Pak, Siemens Mexico, New Holland, ArvinMeritor, Autoliv, TRW Automotive, Tremec, Valeo, Funai, Procter & Gamble, Nestlé, Pilgrim's Pride, Santander Bank's call center for Latin America, Mabe Mexico, Irizar, Scania, Hitachi, Kostal, Aernnova, Dana, Dow Chemical, Bose, Alpha Hilex, Saint-Gobain, Flex-N-Gate, and ThyssenKrupp, among others23.
20 PIB de Querétaro, con tendencia de aceleración. https://www.eleconomista.com.mx/estados/PIB-de-Queretaro-con-tendencia-de-aceleracion-20180117-0182.html. January 2018
21 PIB per cápita en el municipio de Querétaro está 108 por ciento arriba del nivel nacional.
http://codigoqro.mx/2017/05/11/pib-per-capita-en-el-municipio-de-queretaro-esta-108-por-ciento-arriba-del-nivel-nacional/. December 2017
22 Producción de vino, ancla turística en Qro. https://www.eleconomista.com.mx/estados/Produccion-de-vino-ancla-turistica-en-Qro-20180223-0004.html. February 2018
23 Companies Manufacturing in Queretaro, Mexico. https://insights.offshoregroup.com/queretaros-manufacturing-industry
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2.2.2. Demographics and Segmentation
The city of Querétaro has a total of 878,931 inhabitants which are distributed in 431,607 males and 447,324 female individuals24 . The distribution of these inhabitants is adequate for the development of education activities and additional training. Queretaro is a State with higher degree of education and overall income. It has shown to be particularly attractive for industry to be stablished in the state and city of Queretaro due to its level of innovation, education and prosperity. Queretaro is a young and educated state, which makes it the ideal candidate for the development of our entrepreneurial venture. The next figure shows the distribution of the population by age of interest for our institution, with attention to the younger part of the population.
Figure 2. Distribution of the population un the State of Queretaro by age and gender.
Source: Anuario estadístico y geográfico de Querétaro 2017. Querétaro’s statistic and geographic annual report 2017. Instituto Nacional de Estadística y Geografía, Gobierno del Estado de Querétaro.
24 Anuario estadístico y geográfico de Querétaro 2017. Querétaro’s statistic and geographic annual report 2017.
Instituto Nacional de Estadística y Geografía, Gobierno del Estado de Querétaro.
2,038,372.00 2,038,372.00 2,038,372.00
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