Table of Contents
Orlando Translator Inc. is a new company seeking to offer translation services in Orlando, Florida. Over the past five years, the region has experienced an increase in the number of foreigners who do not speak English. Most of the people come to Orlando for business, work, and studies. Hence, they require translators to translate English into their languages and vice versa. The region has several translators, although their services are insufficient. For this reason, Orlando Translation Inc. has high chances of succeeding in the area. The company will first provide Spanish to English and English to Spanish translation services due to a significant number of immigrants from Spanish speaking countries. Later on, the business will expand its services to Arabic, Chinese, Portuguese Dutch and French speakers.
Description of Industry
The US provides the largest market for the translation industry; hence it has a large size. A study conducted by IBIS World shows that for the past five years, the demand for translation services has increased tremendously. The primary factor for increased growth is the migration of non-native English speakers into the country to seek for education or conduct business. Further, IBIS World projects that within the next five years, the industry will record a progressive growth because of the increasing number of immigrants from Non- English speaking nations. The industry’s continuous growth results from leading products such as Spanish to English translation and French to English translation. Most of the translation companies offer their services to the US government, law firms, manufacturers of technological equipment, producers of food and drugs, defense, learning institutions and conferences. Due to a high demand for translation services, many businesses get a profit margin of 40% – 50 %. Further, as estimated by Translation and Localization Industry Facts and Data(2016), the current global annual growth rate is at 5.52%.
Several developments in the translation industry affect the performance of businesses. First, technological changes have changed the translation products and services. For instance, customers nowadays prefer software which they can use to translate their information rather than having face to face sessions with service providers. Besides, some people find video conferencing as an efficient, time saving and cost saving method of translation (Pym, 2011). Moreover, the industry is adapting to machine translations instead of human translators (“The Future of the Translation Industry – Capita Translation and Interpreting”, 2016). Hence, businesses need to update their technologies to gain a competitive advantage in the industry. Second, globalization promotes migration of people from several parts of the world into the US. Therefore, businesses have to hire more staff conversant with all foreign languages. In essence, emerging technologies and high immigration rates support a rapid growth of the translation industry.
Evaluation of the Target Market
The business targets a large market segment comprising of customers from all public and private sectors. Orlando has a high number of Spanish speakers, most who are students and tourists. Besides, the number of working class people who seek jobs in the region immediately after completing their education is increasing. Hence, the potential customers have high incomes and can spend part of it on translation services. Besides, most of the targeted customers are young aged 21 – 35, a period where most enroll for college education and begin working. Nevertheless, it would be difficult to target a large market share due to barriers to entry such as technological changes (Krasny, 2014). Further, as Krasny (2014) states, the projected growth of the company to $39 billion in 2018 has attracted many players, hence making the entrance more difficult.
Mission: The company aims to facilitate communication between American natives who speak English and foreigners who do not understand English.
Vision: The company seeks to serve all people without discrimination. Besides, the company aims at becoming the best provider of translation services in all languages in the US within the next five years.
Location, Management, and Ownership
The company’s location will be in Orlando, Florida. Then, the company will have a management team of six people led by a manager. Team members will have specific roles depending on the area of specialization. Besides, two people will own the company, and they will share the capital as well as other expenses equally.
Currently, the target market has five companies who provide various translation services. The leading companies in the industry are US Translation Company, Verbatim Solutions, Allingus Translation Services, and Lingo24. The main competitors in the targeted geographic regions include Alisa International of Orlando, Translations, USA, Ucredo and Creole Language Interpreters. The company shares about 45% of the market. The services offered by the competitors include translation of Spanish, Dutch, Chinese, Arabic, French, Portuguese and Arabic into English. The pricing depends on with the company, and in most cases, they charge according to the number of words, time and size of paper. For instance, they charge an average of $0.08 per word. Due to the limited number of translation service providers, the competitors charge high prices; hence many clients perceive their services to be expensive. Hence, it will be easy for the company to get a large market share within a short period.
- Krasny, J. (2014). Lost in Translation? There’s a Whole Industry to Help. Inc.com. Retrieved 29 December 2016, from http://www.inc.com/jill-krasny/why-translation-services-is-a-top-industry-to-start-a-business.html
- Pym, A. (2011). What technology does to translating. Translation & Interpreting, The, 3(1),1.
- Translation and Localization Industry Facts and Data. (2016). GALA Global. Retrieved 29 December 2016, from https://www.gala-global.org/industry/industry-facts-and-data
- The Future of the Translation Industry – Capita Translation and Interpreting. (2016). Capita Translation and Interpreting. Retrieved 29 December 2016, from https://www.capitatranslationinterpreting.com/the-translation-industry-5-years-later/