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Pakistan’s Potentiality for MDO Inc.

’s Global Expansion

Pakistan's Potentiality for MDO Inc.'s


Global Expansion
Pakistan’s Potentiality for MDO Inc.’s Global Expansion

North South University

Report On
Pakistan's Potentiality for MDO Inc.'s Global Expansion

Submitted to
Shafquat Rafiul Alam | Initial: Sqt
Senior Lecturer,
Department of Management,
School of Business & Economics
North South University

Submitted by
Team Fast | Bus-251 | Section: 07
Name ID
Akash Podder 1821617030
Jarin Tasnim 1821755030
Jawad Shakir 1812811630
Shahid Ahamed 1821261630
Shibbir Turag 1821583630
Tanzir Ahamed 1821540030
Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Letter of Transmittal
12 May 2021

To,
Shafquat Rafiul Alam (SQT)
Department of Management
School of business, North-South University

Subject: Submission of the final project.

Dear sir,
We are honored to bring this report to you. This report is about our analysis of the potentiality
of extending MDO Inc's business and setting up its office in Pakistan. MDO Inc. will be a
service-based company that will provide AI Law service to its customers.

This report is a vital work of our course (BUS 251-Business Communication), and we as a
whole have attempted our best to do the proper analysis. This analysis helped us to upgrade
our thoughts, ideas, and capacities. We discovered that the learning would be instrumental in
our working environment.

We as a whole worked our best with this report, with the expectation that you will think that
it's acceptable.

Yours Sincerely,

Akash Podder
Jarin Tasnim
Jawad Shakir
Shahid Ahamed
Shibbir Turag
Tanzir Ahamed
Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Executive Summary

MDO Inc. is a widely known and prestigious company throughout the United States for
providing AI Law service to its customers. Being financially stable and intending to be
known globally, they want to expand their business worldwide.

This is where our team comes in; MDO Inc. contacted us to help them find a country suitable
for them to expand. After doing intensive research, we found out that Pakistan has
considerable potential for the services MDO In. is providing.

This report focuses on our research, during which we did planning, the viability of expanding
the business, various analysis, problems that MDO Inc. might face, effective solution about
the problems, and recommendations.

In this report, we have explained why Pakistan will be the best option for expansion. Pakistan
has a very lengthy court system, and many people are due to the justice they deserve.
Moreover, many people lose their money for running from lawyer to lawyer. Whereas, MDO
Inc. provides AI Law service, which is very easy to get if the customer has a smartphone and
almost all people or someone, they know owns a smartphone. Furthermore, the customer only
has to spend very little for getting the preliminary services. They can find cases similar to
them, which will help them gather the idea about what will be the case's outcome. They can
also find suitable lawyers and their services.

There are very few companies in Pakistan that also offer these kinds of services. So, if MDO
Inc. is to make its debut in Pakistan with its easy-to-get AI Law service, it can make its stand
very strongly in the market. They can provide a service to the people which they have long
been deprived of. They will be able to attract a tremendous number of customers and capture
a market that is still growing.

We did the country analysis, competitor, and market analysis from which we came to know
about the custom, culture, mindset, and needs of potential customers of MDO Inc. This will
help MDO Inc. to be able to connect with their customer more and overcome any threat that
the culture and language barriers pose.

Table of Content
Pakistan’s Potentiality for MDO Inc.’s Global Expansion

s
Introduction......................................................................................................................1
Country Analysis..............................................................................................................2
History..........................................................................................................................2
Geography....................................................................................................................2
Climate..........................................................................................................................3
People...........................................................................................................................4
Language......................................................................................................................4
Culture..........................................................................................................................5
Customs & Etiquettes...................................................................................................5
Business Etiquettes of Pakistan...................................................................................6
Communication............................................................................................................6
Currency.......................................................................................................................6
Economy.......................................................................................................................7
Legal Structure.............................................................................................................8
Industry Analysis.............................................................................................................9
Pestel Analysis:.............................................................................................................9
Porters Five Forces Analysis:.....................................................................................13
Competitor & Market Analysis......................................................................................16
Local Competitor Analysis.........................................................................................16
Market Analysis..........................................................................................................17
Human Resource Management.....................................................................................18
Marketing Strategy.........................................................................................................19
Marketing Development.............................................................................................19
Marketing Mix (4p's).................................................................................................20
Financial Plan.................................................................................................................21
Conclusion......................................................................................................................24
References......................................................................................................................25
Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Introduction

MDO Inc. is one of the pioneers who made AI Law service possible in the United States. By
breaking the stereotype that AI can only be used for science and such, MDO Inc. has gained a
vast customer base and reputation throughout the United States. Its headquarter is in New
York, and they also have several branches in many important cities throughout the US.

MDO Inc. mainly provides its customers with AI Law service. The customers can use MDO
Inc.'s website or use their mobile compatible application for taking the services. The services
mainly consist of giving the customers legal advice, providing legal services, suggesting the
customers what will be the probable outcome of the case by providing them cases similar to
the customer's one, suggesting them experienced lawyers, and so on. All of these services are
done through the help of AI.

Considering their success and financial stability MDO Inc. is now looking to expand the
company globally. With the service they provide and the market being minimal, the chance of
their expansion could be a guaranteed success. MDO Inc.'s CEO is looking for a non-English
speaking country for their expansion. Pakistan is a perfect choice and fits for service also.
Pakistan has a very lengthy court system. 43% of the cases filed in the court take 5-10 years
to solve the case. [ CITATION Mir \l 1033 ] So, if MDO Inc. can bring the peoples of
Pakistan a mean through which they can get justice and escape the lengthy court system, their
expansion can be successful.
Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Country Analysis

History
Pakistan is one of the influential countries of the Indian sub-continent. It has a rich history as
many of the earliest civilizations were originated from where present-day Pakistan is now.
Although the concept of an Islamic Republic of Pakistan was being idealized from the start of
the ‘Pakistan Movement.’ [ CITATION Pak1 \l 1033 ] After the 1946’s election, when the
Muslin League was able to obtain most of the Muslim votes movement became even more
active. In other words, the 1946’s election was the final stone of creating an all-Muslim
nation. After many failed attempts from the British empire, who had colonized the sub-
continent then it finally came to the birth of the Islamic Republic of Pakistan on 14 August
1947. President of the Muslim League, Muhammad Ali Jinnah became the nation’s governor-
general. The Constitution of Pakistan of 1956 declared the country as an Islamic democratic
country. [ CITATION Pak \l 1033 ]

Geography
Pakistan has a vast area of 881,913 km 2, making it the 33rd largest country in the world.
Pakistan shares a border with India, China, Iran, and Afghanistan. The Geography of Pakistan
is a vast combination of scenes from fields to deserts, woods, and flat terrains. Flat terrains
begin from the seaside of the Arabian Sea. The line then follows south to the mountains such
as Hindukush and Himalayas, which span till north. Pakistan's geography overlaps with the
Indian and Eurasian tectonic plates. Due to being on the part where two tectonic plates
collide, some areas of Pakistan are very earthquake-prone. [ CITATION Geo \l 1033 ]

Etymological Map of Pakistan [ CITATION Ety \l 1033 ]

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Climate
Pakistan has a continental form of weather with a high alteration in temperature both
seasonally and day-to-day. The reason behind this is that Pakistan is located in the north of
the Tropic of Cancer.

In the northern mountain area, the climate is somewhat cold, whereas in the plain terrain of
Balochistan the temperature is higher. The coastal area has a moderate climate which is
dictated by the sea breeze. About the rest of the country, in summer, the temperature reaches
a very high point, and in the winter, it is shallow but not under the freezing point. During the
hot summer days, sometimes thunderstorms and dust storms lower the temperature for some
moments. However, the evenings are somewhat relaxed. [ CITATION Cli \l 1033 ]

Climate Classification Map of Pakistan

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

People
Pakistanis are the nationals and residents of the Islamic Republic of Pakistan. The estimated
population of Pakistan is 207,774,000, which makes it the 5 th largest country in the world.
The population of Pakistan is ethnically and linguistically diverse as the regions of Pakistan
hold different kinds of customs and cultures. [ CITATION Pak \l 1033 ]

Ethnic Groups
Punjabi
Pastun (Pathan)
8%4% Sindhi
9% Saraiki
48% Muhajirs
15% Balochi
Others
16%

Ethnic Groups of Pakistan [ CITATION Pak2 \l 1033 ]

Language
The diverse ethnicity of Pakistan also makes it the home of many different language
speakers’ peoples. Pakistan has a vast 74 languages in which its people communicate on. The
national language is Urdu. English is also used as a language in Pakistan for its official
works. [ CITATION Pak2 \l 1033 ]

Languages
Punjabi
Sindhi
Saraiki (A Punjabi variant)
21%
3%%
9% Pashto (Pashtu)
Urdu (Official Language)
9%
Balochi
52% Hindko
11%
Brahui
13% Burushaski & Others

Language Diversity of Pakistan [ CITATION Pak2 \l 1033 ]

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Culture
Pakistan has many ethnic groups in its area. So, they have a mixed culture. It is a mix of
South Asian and Central Asian cultures. Also, the culture is influenced by the neighbors with
whom Pakistan shares a border, such as other South Asian countries, Iran, Turkey. Although
being a Muslim majority country, Pakistan has formed an apparent Muslim identity for its
culture. [ CITATION Cul \l 1033 ]

Pakistan is mainly a male-centric country, and the male members are usually the main
earning person in a family, and they also head it. Also, as per Islamic rules, men are
forbidden to get close to a woman who is not from their family or does not have a blood
relationship with them. Furthermore, women are seen with respect.

The food they consume, their form of entertainment, festivities they celebrate are within the
boundary of Islamic rules. Pakistani people maintain a halal food habit. Furthermore, the
foods are a blend of Indian cuisine with Middle Eastern and Afghani impact. They love to eat
spicy food, and dishes consisting of meat are famous like grilled meat, kebab, biriyani, etc.
Pakistan is rich in poetry, and it is a high respect art in Pakistan. The Persian culture
influences the poetry culture of Pakistan. Qawwali and Ghazal are the forms of songs they
listen which is now a fusion of both traditional and western music with the help of the
instruments. These two kinds of songs are very famous there. The festivals all evolve around
the Muslim culture. The main festival of Pakistan is Eid which is celebrated by all Muslim
countries. [ CITATION Cul \l 1033 ]

Customs & Etiquettes


The South Asian region influences the customs and etiquettes of Pakistan. Pakistanis are
amicable people. They love to meet and greet new people. They will welcome you
wholeheartedly if you behave with the right. Guests are seen and taken care of with great
importance. In Pakistani custom, elders of the society are seen with the utmost respect.
Everyone greets an elder first. The greetings are customarily followed by a ‘Hello Mr. ..’ and
a handshake or a Salam, which is an Islamic custom. However, greetings between men and
women are only followed verbally. It is not appropriate to get close to or touch her in the
Pakistani custom. [ CITATION Pak3 \l 1033 ] [ CITATION Agu \l 1033 ]

Pakistani people usually praise each other about their appearance. Furthermore, a person must
dress modestly and appropriately when there is a festival. Laughing loudly outside is
considered impolite in Pakistani custom. Hospitality is an ancient custom of Pakistan. They
usually invite people to their homes at festivals. One may bring a gift when visiting one’s
house. However, the gifts should be halal or Islamic standard and not consist of any haram or

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alcohol. Pakistanis are children-loving people, and engaging with children is seen with great
respect. [ CITATION Pak3 \l 1033 ] [ CITATION Agu \l 1033 ]

Criticizing one's favored political party is seen as rude behavior in Pakistan. Also, insulting
someone in public is considered wrongdoing and highly impolite. Demoting religion is not
accepted anywhere in Pakistan. [ CITATION Pak3 \l 1033 ] [ CITATION Agu \l 1033 ]

Business Etiquettes of Pakistan


One should introduce himself/herself in any business meetings. After the greetings are done,
it is wise to exchange a business card. Exchanging the card with the right hand is a must.
Greeting the oldest member of any meeting is a custom of Pakistan. It is good to arrive on
time for the meetings. [ CITATION Pak3 \l 1033 ]

As an Islamic county, Pakistani peoples do fast in the month of Ramadan. So, it is not wise to
put any business meeting at that time. Also, people in Pakistan who follow Islam pray five
times a day. Setting up any kind of meeting during those periods is also not wise.
[ CITATION Agu \l 1033 ]

Communication
Verbal communication in Pakistan is mainly indirect. Insulting anyone while communicating
is rude behavior there. Also, while giving refusal being direct is not wise. Doing so implies
the end of a relationship. [ CITATION Pak3 \l 1033 ]

Physical contact is seen as an affectionate behavior there but only among those of the same
gender. Looking someone directly in the eye is a rude gesture in Pakistan. Personal space is
not of any concern in Pakistan. So, people usually stand closer to each other. However, a
moderate distance must be made while communicating with someone of the opposite gender.
[ CITATION Pak3 \l 1033 ]

Currency
The Pakistani rupee has been the official currency of Pakistan, seeing that 1948. The cash and
notes are issued and managed through a critical bank, namely the State Bank of Pakistan.

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Economy
The economic system of Pakistan is the twenty-second largest withinside the international in
phrases of shopping electricity party (PPP) and forty-fifth largest in representations of
nominal gross home product. Pakistan has a general population of more than 220 million (the
universes fifth biggest), giving it an ostensible GDP predictable with the capita of $1,186 in
2020-21, which positions 154th withinside the global and giving it a PPP GDP reliable with
the capita of $5,839 in 2019, which positions 132nd withinside the worldwide for 2019.
However, Pakistan's undocumented economic system is anticipated to be 36% of its ordinary
financial system, which is not considered while calculating consistent with capita income.
Pakistan is a developing country. The monetary framework is semi-industrialized, with
focuses on increment close by the Indus River. Primary export commodities consist of
textiles, leather-based goods, sports activities goods, chemical substances, and carpets/rugs.
The growth poles of Pakistan's economic system are located alongside Karachi's diverse
economies and central city facilities, coexisting with lesser evolved regions in different
country components. The financial system has suffered from internal political disputes, a fast-
developing populace, and blended stages of overseas investment. They are strengthened
through regular employee remittances. However, a developing present-day account deficit –
pushed through a widening alternate hole as import increase outstrips export expansion –
ought to draw down reserves and hose down GDP increase it inside the medium period.
Pakistan is presently in monetary liberalization, consisting of privatizing all authorities’
corporations, aiming to attract overseas investment and reduce finances. In October 2016,
overseas foreign money reserves crossed $24.zero billion, which has brought about a strong
outlook at the long-time periods or through Standard & Poors. In 2016, the BMI Research file
named Pakistan as one of the ten rising economies with selected attention on its production
hub.

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As of May 2019, IMF has expected that predetermination increment charges possibly 2.9%,
the base in South Asia. As per the World Bank, neediness in Pakistan tumbled from 64.3% in
2002 to 29.5% in 2014. The nation's deteriorating macroeconomic job has achieved Moody's
minimizing Pakistan's obligation viewpoint to "negative." In 2017, Pakistan's GDP in
expressions of shopping power equality crossed $1 trillion. By May 2019, the Pakistani rupee
had gone through a year-on-a-year devaluation of 30% versus the United States Dollar. In
2020 CPEC Phase 2 has been begun, with another billion greenbacks arrangements.

Pakistan represents considerable authority in its own Electric Vehicle, biomedical


electromagnetic, cell phones, and semi-transmitter Industry. Samsung and Realme broadcast
to installation meeting plant in Pakistan. Pakistan's first virtual is setting up in Haripur.
[ CITATION Eco \l 1033 ]

Legal Structure
There are five types of law in Pakistan. Since 1947 Pakistan has adopted three constitutions.
One is in 1956, then 1962, and 1973. Pakistani law and justice division is under the advisory
of the federal government. Pakistan has one Supreme Court, and every province has one high
court. Civil and criminal jurisdiction exercise in other courts. The government published the
federal law of Pakistan in a document which is called a gazette of Pakistan.

Any authorization allowed by the Federal Government for interest in a current endeavor will
be dependent upon the accompanying condition. To such different needs, .as the Federal
Government may indicate, in particular.

Likewise, some other country residents will store the full measure of repatriable foreign
interest in an unfamiliar trade account in Pakistan for its ensuing use to acquire hardware and
other fixed resources of the endeavor.

According to currency control, the move of protections to a non-occupant requires the State
Bank of Pakistan (SBP).

Cash moved in foreign money from outside Pakistan to an SCRA is credited in Pakistani
rupees
Foreign organizations that need to set up their business in Pakistan are required to get
enrollment with the BOI and the Securities and Exchange Commission of Pakistan (SECP)
contingent upon the idea of business being set up in Pakistan. [ CITATION Mir20 \l 1033 ]

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Industry Analysis

Pestel Analysis
Pestel analysis or recently named PESTLE is a framework or tool used by marketers to
analyze and monitor the macro-environment factors that impact an organization.
[ CITATION MAR \l 1033 ]

The PESTEL Analysis consists of 6 essential marketing analyses. They are:


● Political ● Economic
● Social ● Technological
● Environmental ● Legal

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Political Factor

Pakistan's Trade Relations: Pakistan has excellent trade relations with its neighboring
superpower China and a good relationship with the USA.
Corruption: Corruption is one of the significant parts of Pakistan and perhaps the biggest
problem as well. Even though the government claims that they have eradicated it, political
instability, crimes, assassinations, political disagreements, etc., often occur.
The deteriorating relationship between India and Pakistan: Pakistan and India have been
at odds for quite some time now over many things, and it is their biggest challenge to get a
workable relationship with India.
Pakistan has an ever-growing problem of politics and corruption. So, for this reason, law
firms are growing in demand day by day. As the cases of corruption rise, people seek help
from these law firms. Online law firms have been growing in demand nowadays. Even
though an online law firm is a relatively new practice in Pakistan, MDO Inc. should have
minor problems setting up an online law firm.

Economic Factor

Investors in Pakistan: Countries such as China, the USA, and even Japan, South Korea have
continued the investment with Pakistan, which attracted more FDL inflow.
Domestic Investors: Even though we see that the developed countries investing in Pakistan,
which can make Pakistan's economic growth, we can see that lack of friendly business
environment, poor law is hindering and discouraging the local investors from investing in the
local businesses.
Pakistan can be said an economically stable country. It is still in the developing phase, but the
steady economic growth cannot be denied. The introduction of a new business opens the door
to many people not being jobless. This will improve their economic stability and, at the same
time, the country's economy will also grow.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Social Factor

Unemployment rate: The unemployment rate of Pakistan was 4.40% in 2020, increased by
0.30% from 2019. This can be reduced.
Workforce: Pakistan has a vast workforce that can be turned into an asset.
Social Challenges: Poor literacy, terrorism, flawed health care system, etc., are some social
challenges that it needs to overcome.
If MDO Inc. goes to Pakistan and can start their online business, many people can get jobs
and can earn income. At the same time, MDO Inc. will be doing social work as maintaining
law and justice is the best social work. As online law service is still in the early stages, MDO
Inc. can get the exposure of working there and establishing their business quickly.

Technological Factor

Pakistan's Advancement in Technology: In recent years, Pakistan has been growing


exponentially in the technological field.
Usage of Social Media: More and more people in Pakistan are using the Internet. Social
media such as Facebook, Twitter, Pinterest, etc., are growing popular day by day.
As MDO Inc. business will be to provide online law service, it is needless to say that the
company will be relying much on online products such as Facebook, Twitter, etc., and
wherever they want their platforms to be. It is essential to have a solid communicational
platform to communicate with its customers efficiently. At the same time, the platforms and
all other online tasks have to be appropriately maintained.

Environmental Factor

Environmental Challenges: Even though Pakistan is a naturally gifted country, it faces


many environmental challenges such as climate change, deforestation, air pollution, etc.
MDO Inc. has to cope with the environmental problem that will be present in Pakistan.
Pakistan is different from other countries, and that it has many histories of having corruption
and political instability. MDO Inc. also has to overcome the language barriers that will be
among the core elements that they will need to communicate with the natives.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Legal Factor

Constitution of Pakistan: Pakistan is a federal democratic State, which ensures the well-
being and protection against discrimination.
Pakistan is one of the many politically unstable countries. Also, many criminal activities are
seen to take place in the country. So, in order to tackle this, service providers like MDO Inc.,
who will be specializing in providing law services to the general people, must be highly
essential to the country. As MDO Inc. will be doing business on online law service, their
business will be related to all legal stuff and tackle them. The company will ensure and give
legal advice to the native people and try to solve their problems with less legal hassle.

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Porters Five Forces Analysis

Porter's Five Forces of MDO Company

Supplier  Size of suppliers is small


Power  High switching cost
(Low)  Uniqueness of service

Buyer  No. of customers is high


 Low buyers’ ability
Power to substitute
(Low)

Competiti
ve  Number of competitors
is low
Balan
Rivalry  Differences of quality ce of
(Low)
Power

Threat of  Substitute cost is high


 Substitute services is low
Substituti
 High buyers’ propensity to
on substitute
(Low)

Threat of
New Entry  Cost of entry is low
 Low barrier to entry
(High)  Industry growth scale is
high
(High)

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Bargaining Power of Supplier

There are several online law service providers in Pakistan, and the number of online law
services is increasing among the general public to avoid legal hassles, so it can be said that
the number of customers in this sector is also increasing day by day. So bargaining power of
lawyers as suppliers is more in this sector. As a result, buyers have not many options, while
sellers have many current and prospective customers. Furthermore, only a handful of
companies are providing Online AI-based law services in Pakistan. For MDO Inc., the
supplier's bargaining power is low.

Bargaining Power of Buyers

Due to the lack of awareness about the law and the slow pace of the law and justice system,
people have to face various problems at different times, so the popularity of online AI-based
law service companies is increasing among the people of Pakistan. As a result, the number of
buyers in this sector is very high. We also know that as the number of buyers increases, the
bargaining power of the buyers decreases. As a result, buyers' bargaining power in this sector
is limited.

Competitive Rivalry

There are several law service firms in Pakistan that provide legal assistance to people and
online services. However, they are not widely used in advanced technology. Moreover, lots
of law firms in this sector but none of them provide AI-based law services. Due to which
there is competition among other general law service firms, but there is no competition for
MDO in this sector as it is an AI-based law service firm. So, it can be said that for MDO Inc.
in Pakistan, the competitive rivalry is low.

Threat of Substitution

When there are many alternatives for service on the market, customers can find similar
services. Pakistan's legal system is slow and inefficient in handling cases, so people seeking
help go to various law firms for legal help, but most law firms do not get the proper services
they want. So, there is a tremendous demand for AI-based law service firms in Pakistan.
Since there is a lack of good quality law firms and no company offering AI-based law
service, we can say that the threat of substitutes in this sector is low.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

New Entrants Threat

In a densely populated country like Pakistan, where the crime rate is very high and at the
same time there is not much awareness among the people about law, so there is much
potential for an online law service business, and there are many opportunities to expand the
business. Because of this, there are still many opportunities for new companies to come in.
Due to demand and requirements, this system will have fewer hassles and comparatively less
cost to start a new business. So, the challenge of new entrants is high for MDO.

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Competitor & Market Analysis

Local Competitor Analysis


There is only one company similar to MDO Inc., which is providing similar services.
Furthermore, there are some other companies and websites which are somewhat similar to
MDO Inc.

24justice: 24justice is a leading online legal service company in Pakistan. Also, it is the only
company in Pakistan similar to MDO Inc. They provide only two similar services as MDO
Inc, providing customers with reliable lawyers and giving them legal advice.

Zahid Law Associates: Zahid Law Associates has a working website. From where they
provide online legal service only for a specific matter: marital topics. Such as marriage,
divorce. They also offer online legal drafting services worldwide.

Pakistan Lawyer & Ask Wakeel: These two are mainly website-based companies. Their
services are bound only in giving legal advice and suggesting lawyers to the customers.

’24justice’ is the only company that is somewhat similar to MDO Inc. However, the other
companies only offer legal advice and lawyers online. These companies do not fully offer the
services MDO Inc. will be providing. Whereas MDO Inc. is a total AI-based company, and
all the services to the customers are done through AI, the local companies in Pakistan are
only website-based. MDO Inc. even has a user-friendly mobile compatible application.

So, with the vast services MDO Inc. will provide compared to what the local competitors are
providing, it will not be an issue to them.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Market Analysis
AI-based law service has been here only for a short time. It can be said that the industry is
still in the blooming phase. For the market of Pakistan, it is somewhat a new concept. So, the
market is lying there to capture it. MDO Inc. can capture this opportunity and gain the first
mover's advantage to expand its business. Although the risk of entering a new market is there
for MDO Inc., it is of little concern given the vast market that is lying there for MDO Inc. to
capture.

People in Pakistan are new to this concept of AI-based law service. However, some
companies are providing an online-based service. However, their work is not even close to
what MDO Inc. will be proving. From suggesting people, reliable lawyers to giving them
similar cases to the case they have, MDO Inc. provides many services.

Also, the court system of Pakistan is very lengthy. According to one report, 43% of cases
filed in a region of Pakistan take 5 to 10 years to be resolved. [ CITATION Mir \l 1033 ]
The main reason can be said that people often fail to find a suitable lawyer to run their cases
or the legal aid offices is not capable enough. So, if MDO Inc. was to move to a market
where they have the product the people are being deprived of, it will be a sure success. Here
the product will be justice, and MDO Inc. will do an excellent job to provide it.

MDO Inc. will have to make a firm stand in the market and advertise their product so that
people will be interested in it. After the people are aware of the AI-based law service, they
will want to test out the credibility of the product. So, an advertisement will be a significant
factor in capturing the market.

Given the situation of the market and the local competitors, it will be possible for MDO Inc.
to enter the market and capture it. The market is new, and it holds many promises. However,
it will all depend on the employees that MDO Inc. will deploy in Pakistan, as it will be their
job to ensure that the product ‘AI-based Law Service’ gains credibility to the customers.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Human Resource Management


MDO Inc. is a USA-based company. So, the culture of the company is also based in the USA.
However, Pakistan has different cultures and customs than the USA. Also, the people of
Pakistan love to see their fellow countrymen/women providing them any services. So, MDO
Inc. will have to hire new staff from the host country, which is Pakistan. They have to follow
the HRM rules and regulations of Pakistan while recruiting.

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Marketing Strategy

Marketing Development
We, as Marketer in Pakistan, will obtain information from:

Marketing intelligence: This is a precise collection and analysis of plainly available data
about customers, competitors, and development in this marketplace. Also, we believe that this
will benefit us to investigate the market pretty well to maintain movement with the Pakistani
market.

Market information: There are already exist some law firm in Pakistan in a different
region. Furthermore, they are doing well because Pakistan's government law services are not
up to the mark. So, most of the time, people rely on private law services. Therefore, this
industry is developing in Pakistan. Right now, more than hundreds of traditional private law
firms exist in Pakistan.

Existing market: Pakistan already has a few law firms. So, the market is already developed.
We have to follow the market penetration strategy, which is a new entry into an existing
market. Since our services are more modern and technology-based, so it is not difficult for us
to do well in the existing market. Because our services are more advanced and consumer can
easily benefit for our service.

Also, we can do some marketing researches. Doing all marketing research is a precise way of
reporting data, collecting, designing, analyzing, related to the market, the condition of a
system. While we are a newcomer in this Ai-based legal service of Pakistan, we can also
follow the survey, focus groups, interviews, libraries, government agencies, trade association
methods of market research.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Marketing Mix (4p's)


Marketing their product to the customers will be a vital task for MDO Inc. As MDO Inc. will
have to gain credibility to the customers about their products. So, they can follow the
marketing mix below, which shares ‘4p of Marketing’.

Product: The product will be an AI-based law service that MDO Inc. will provide to the
customers through their website or mobile application. As the concept of this product is new
to the customers, MDO Inc. will have to enlighten the customers about this product first.

Price: For capturing the market, MDO Inc. will have to set a market penetration pricing.
Also, as Pakistan is not that much solvent country making the price so that the people can use
it without any hesitation will be a good choice.

Promotion: Promotion will be a vital part of this undertaking. As it will be needed to place
the product in the market. MDO Inc. can put advertisements about their product on television
and social media like Facebook, Twitter, Linked In, etc. For the advertisements, MDO Inc.
will have to keep in mind the local sentiment. The advertisements should be modest and not
insulting or mocking the religious or local sentiments of the people.

Placement: For the product placement, MDO Inc. should target the people who are being
deprived of justice and roaming court boundaries for a long time. The targeted customers
should be the male population from the age of 20-60. As Pakistan is a male-centric country, it
is the male members of the house who runs cases most of the time. Also, they can target the
business companies to get a regular customer.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Financial Plan
Financial Plan

Pro Forma Income Statement


Amount in Millions 2021 2022 2023 2024 2025
Growth sales 25% 25% 25% 25% 25%
Costs & Expenses 4% 4% 4% 4% 4%
Growth sales and Marketing 15% 15% 15% 15% 15%
Growth R&D 15% 15% 15% 15% 15%
Salaries & wages of revenue 2% 2% 2% 2% 2%
Growth General & administrative 1% 1% 1% 1% 1%
Tax Rate 20% 20% 20% 20% 20%

Budgeted Income statement

Xpro Forma Income Statement


Amount in Millions 2021 2022 2023 2024 2025
Revenue 25 31.25 39.06 48.82 61.02
Other Incomes 5 5 5 5 5
Total Revenue 30 36.25 44.06 53.82 66.02
Costs & Expenses 5 5.2 5.41 5.63 5.86
General & administrative 4.5 4.545 4.59 4.64 4.69
Sales and Marketing 6 6.9 7.94 9.13 10.5
R&D 3 3.45 3.97 4.56 5.24
Software & Website Development (10%) 2 2.2 2.42 2.67 2.94
Wages & Salaries 4 4.08 4.16 4.24 4.32
Business license tax - - - - -
Rent - - - - -
Total Expenses 24.5 26.375 28.49 30.87 33.55
EBT 5.5 9.875 15.57 22.95 32.47
Tax 20% 1.1 1.97 3.11 4.6 6.5
Net Income 4.4 7.905 12.46 18.35 25.97

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Assumption:
The revenue is projected to increase by 25 percent due to promotional activity because no
company can function entirely without promotion. Then we must spend more in marketing
efforts to achieve the desired growth, while we have a sales and marketing budget. Expenses
are aggregated at 4%, R&D 15%, Salaries and compensation 2%, and General &
Administrative growth of 1% each year to balance consumer purchases. The tax rate is
assumed 20% for the next five years.

Balance Sheet
Amount in Millions 2021 2022 2023 2024 2025
Assets
Cash 55 60.5 66.55 73.2 80.52
Other Current Assets 4 4.4 4.84 5.32 5.85
Fixed Assets 6 6.6 7.26 7.98 8.78
Total Assets 65 71.5 78.65 86.5 95.15
Liabilities and Equities
Payables 25 27.5 30.25 33.27 36.58
Financial Debts 12 13.2 14.52 15.97 17.58
Equity 20 22 24.2 26.62 29.28
Other Liabilities 8 8.8 9.68 10.64 11.71
Total Liabilities and Equities 65 71.5 78.65 86.5 95.15

For the next five years, all aspects in the balance sheet are expected to rise by 10 percent.
Margins are expected to be the same over the years, and so all products in the balance sheet
are assumed to have the same growth rate.

Pricing of service:

Pricing

Cost of Materials 22.50


Cost of Labor 298.82

Overhead 1052.3529412

Total Cost 1373.67

Markup 1624.33
Required Sale Price 3000

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Break-Even Analysis
Break-Even Analysis
Fixed Cost & variable Cost 24500000
Variable Cost Per Unit 22.500
Sales Price (Per Unit) 3000
Break-Even (Units) 8228.379513
Break-Even (price) 24685138.54

Months Units Total Cost Sales


Month 1 1500 24500000 4500000
Month 2 1500 24500000 4500000
Month 3 2000 24500000 6000000
Month 4 2500 24500000 7500000
Month 5 2500 24500000 7500000
Month 6 3000 24500000 9000000
Month 7 3000 24500000 9000000
Month 8 4500 24500000 13500000
Month 9 7500 24500000 22500000
Month 10 9000 24500000 27000000
Month 11 10000 24500000 30000000
Month 12 12000 24500000 36000000

Break-Even Analysis
Total Cost Sales
40000000 36000000
35000000 30000000
30000000 27000000
2450000024500000245000002450000024500000245000002450000024500000245000002450000024500000
25000000 22500000
total Sales

20000000
13500000
15000000
7500000 7500000 9000000 9000000
4500000 4500000 6000000
10000000
5000000 0
0
1 2 3 4 5 6 7 8 9 10 11 12

Months

We expect the total cost (Fixed cost & Variable cost) and our total sales will meet at the point
of month nine. The break-even price is 24685138.54 (assumed), and the break-even unit is
8229.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

Conclusion
Pakistan is a perfect choice for MDO Inc. to expand its business globally. It has enormous
potential for the product they are offering. Should MDO Inc. capture that market, they can
expand their business into the whole Sout Asia. However, they have to keep the Pakistani
peoples' culture, customs, and sentiments in mind because a global expansion can fail
because of these reasons.

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Pakistan’s Potentiality for MDO Inc.’s Global Expansion

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