Download - INB 410 Final
-
7/28/2019 INB 410 Final
1/25
International Competitiveness
INB 410
Presentation
-
7/28/2019 INB 410 Final
2/25
Prepared by:
Md. Sadaf Islam 093 0418 030
Bingqing Xue 103 0913 030 Farhan Israq Ahmed 111 0440 030
Md. Shaharier Kabir 092 0059 030
S.M. Raihan-Uz-Zaman 081 863 030
-
7/28/2019 INB 410 Final
3/25
Topic
Investing in any Lucrative Industry
in a Developed
Country
-
7/28/2019 INB 410 Final
4/25
Our Selected Country
-
7/28/2019 INB 410 Final
5/25
Our Selected Industry
Renewable Industry
-
7/28/2019 INB 410 Final
6/25
Why Norway?
Norway consistently attracts strong foreigninvestments.
The energy sector especially draws the
most amount of FDI
Norway is a heavy producer of renewableenergy, first of all due to good resources inhydropower.
Human resource in Norway is highlyeducated
-
7/28/2019 INB 410 Final
7/25
Video
-
7/28/2019 INB 410 Final
8/25
Why Norway?
PEST Analysis
-
7/28/2019 INB 410 Final
9/25
Political overview
Political structure : Parliamentary
Territory: 148,747 sq miles
Capital: Oslo
Population: 5.017 million
From 2011 to 2012, GDP has grown from0.414 to 0.485 billions of U.S. dollars.
GDP per capita $58,600
The favorable business climate and political
stability have contributed to a significantinflow of foreign direct investments (FDI)into Norway.In 2010 Norway has attracted FDI of over11,857 million U.S. dollars.
-
7/28/2019 INB 410 Final
10/25
Economic overview
GDP per capita (PPP):$57,227.94 (2011) & $54688.08 (2010)
Norway is in 15th position in Global Competitiveness ranking
Norway holds 6th position in Ease of Doing Business rankingby World Bank
-
7/28/2019 INB 410 Final
11/25
Social and Cultural Analysis
GDP( Purchasing Power parity) in 2011was$ 274.177 billion of international dollars
According to Statistics living cost inKazakhstan is high
Unemployment rate is only 3.7%(2012)
Life Expectancy-For men - 83.5 years rate at birthFor women - 79.0 years rate at birth
-
7/28/2019 INB 410 Final
12/25
Technological Infrastructure
Norway has perfect infrastructure forFDI in renewable energy industry.
According to a survey, they mayincrease annual production ofhydropower by 12 percent through2020 as the country strives to meetEU targets for higher renewableenergy output
Hydropower investors are ready tobuild new plants and upgradeexisting stations.
-
7/28/2019 INB 410 Final
13/25
Porters Five Forces
Threat of new entrants:
High hydropower consumption
Govt. incentives High threshold
Threat of substitute products:
-
7/28/2019 INB 410 Final
14/25
Porters Five Forces (contd.)
Competitive Rivalry
Rich resources
High growth rate
High fixed costs and exit barriers
Bargaining power of buyers
Few alternatives
High switch costs
Difficult backward linkage
-
7/28/2019 INB 410 Final
15/25
Porters Five Forces (contd.)
Bargaining Power of Suppliers
Low switch costs
High demand Easy forward linkage
-
7/28/2019 INB 410 Final
16/25
Porters Diamond Model
Factor endowment:
Norway has skilled labor and universities proucingengineers
However Norway lacks 16000 engineers so importsengineers for the deficit.
The countrys topography and hydrological status results
in concentrated rainfall in the western areas leading inturn to high run-off through waterfalls and river systems.
The Norwegian Government gives priority to researchaimed at confronting the challenges related to energysupply.
There are agencies and other organizations financially
supporting the renewable energy projects. northern regions are accessible only by ship, car, or
aircraft. Good communication e.g. internet is alsoavailable.
-
7/28/2019 INB 410 Final
17/25
Porters Diamond Model
Demand condition
Norway has a small population so it might indicate a
small domestic market.
Norwegian to be sophisticated customers. Due to one
of the highest GP percapita Do global business as it wants to be the Green
Battery for Europe.
-
7/28/2019 INB 410 Final
18/25
-
7/28/2019 INB 410 Final
19/25
Porters Diamond Model
(contd.)
Firm Strategy, Structure and Rivalry:
A total of 28 major companies are in
the market
local community looks to price ofenergy, more than anything else
-
7/28/2019 INB 410 Final
20/25
Porters Diamond Model
(contd.)
Firm Strategy, Structure and Rivalry:
A total of 28 major companies are in
the market
local community looks to price ofenergy, more than anything else
-
7/28/2019 INB 410 Final
21/25
SWOT Analysis
Strengths:
Infrastructure
Similarly priced
Abundant source
-
7/28/2019 INB 410 Final
22/25
SWOT Analysis (contd.)
Weaknesses:
Local demand is low
Government puts less priority onit
-
7/28/2019 INB 410 Final
23/25
Conclusion and Decisions:
PEST and SWOT analysis shows
decision to invest was proven
right
-
7/28/2019 INB 410 Final
24/25
Recommendations
Factor we need to focus on:
Rules and regulations of Norwaygovt.
Up coming technologies
Supply condition Expending business
-
7/28/2019 INB 410 Final
25/25
Thank You
Any Question?