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International Competitiveness

INB 410

Presentation

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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

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Topic

Investing in any Lucrative Industry

in a Developed

Country

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Our Selected Country

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Our Selected Industry

Renewable Industry

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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

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Video

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Why Norway?

PEST Analysis

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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.

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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

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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

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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.

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Porters Five Forces

Threat of new entrants:

High hydropower consumption

Govt. incentives High threshold

Threat of substitute products:

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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

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Porters Five Forces (contd.)

Bargaining Power of Suppliers

Low switch costs

High demand Easy forward linkage

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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.

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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.

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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

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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

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SWOT Analysis

Strengths:

Infrastructure

Similarly priced

Abundant source

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SWOT Analysis (contd.)

Weaknesses:

Local demand is low

Government puts less priority onit

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Conclusion and Decisions:

PEST and SWOT analysis shows

decision to invest was proven

right

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Recommendations

Factor we need to focus on:

Rules and regulations of Norwaygovt.

Up coming technologies

Supply condition Expending business

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Thank You

Any Question?