International Competitiveness INB 410 Presentation

Prepared by:

Md. Sadaf Islam Bingqing Xue Farhan Israq Ahmed Md. Shaharier Kabir S.M. Raihan-Uz-Zaman

093 0418 030 103 0913 030 111 0440 030 092 0059 030 081 863 030

Topic
Investing in any Lucrative Industry in a Developed Country

Our Selected Country

Our Selected Industry

Renewable Industry

Why Norway?
Norway consistently attracts strong foreign investments. The energy sector especially draws the most amount of FDI Norway is a heavy producer of renewable energy, first of all due to good resources in hydropower. Human resource in Norway is highly educated

Video

Why Norway?

PEST Analysis

Political overview
Political structure : Parliamentary Territory: 148,747 sq miles Capital: Oslo Population: 5.017 million From 2011 to 2012, GDP has grown from 0.414 to 0.485 billions of U.S. dollars. GDP per capita $58,600 The favorable business climate and political stability have contributed to a significant inflow of foreign direct investments (FDI) into Norway. In 2010 Norway has attracted FDI of over 11,857 million U.S. dollars.

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 ranking by World Bank

Social and Cultural Analysis

GDP( Purchasing Power parity) in 2011 was $ 274.177 billion of international dollars According to Statistics living cost in Kazakhstan is high Unemployment rate is only 3.7%(2012) Life ExpectancyFor men - 83.5 years rate at birth For women 79.0 years rate at birth

Technological Infrastructure
Norway has perfect infrastructure for FDI in renewable energy industry. According to a survey, they may increase annual production of hydropower by 12 percent through 2020 as the country strives to meet EU targets for higher renewable energy output Hydropower investors are ready to build new plants and upgrade existing stations.

Porters Five Forces

Threat of new entrants: High hydropower consumption Govt. incentives High threshold Threat of substitute products:

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

Porters Five Forces (contd.)

Bargaining Power of Suppliers Low switch costs High demand Easy forward linkage

Porters Diamond Model

Factor endowment: Norway has skilled labor and universities proucing engineers However Norway lacks 16000 engineers so imports engineers for the deficit. The countrys topography and hydrological status results in concentrated rainfall in the western areas leading in turn to high run-off through waterfalls and river systems. The Norwegian Government gives priority to research aimed at confronting the challenges related to energy supply. 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 also available.

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.

Porters Diamond Model (contd.)

Related and Supporting Industries:
Research, technology, and sound business practices are at the core of the ongoing development of renewable products and technology in Norway REC produces polysilicon, wafers, cells and modules for the solar industry, and silicon materials for the electronics industry.

Porters Diamond Model (contd.)

Firm Strategy, Structure and Rivalry:
A total of 28 major companies are in the market local community looks to price of energy, more than anything else

Porters Diamond Model (contd.)

Firm Strategy, Structure and Rivalry:
A total of 28 major companies are in the market local community looks to price of energy, more than anything else

SWOT Analysis
Strengths: Infrastructure Similarly priced Abundant source

SWOT Analysis (contd.)

Weaknesses: Local demand is low Government puts less priority on it

Conclusion and Decisions:

PEST and SWOT analysis shows decision to invest was proven right

Recommendations
Factor we need to focus on:
Rules and regulations of Norway govt. Up coming technologies Supply condition Expending business

 Thank You Any Question?