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Identifying Market Entry Possibilities in Africa

Berninger, Cecilia and Otterbeck, Elin (2014) MIO920
Production Management
Abstract
Background and Problem Discussion: In order for companies to develop their businesses, it is vital
to identify and select new market opportunities. Expanding
into a new market and to develop a market entry strategy
involves a great deal of market research, a thorough analysis
and it takes an appropriate process to correctly assess the
potential of each growth opportunity. To access and exploit
these opportunities, knowledge and research are required due
to the numerous aspects affecting a market’s complexity.
This thesis was conducted at Sandvik Materials Technology
within the product area Wire and Heating Technology,
producing niched products to sectors as heating industry,
welding, energy, medical and semiconductor industry.... (More)
Background and Problem Discussion: In order for companies to develop their businesses, it is vital
to identify and select new market opportunities. Expanding
into a new market and to develop a market entry strategy
involves a great deal of market research, a thorough analysis
and it takes an appropriate process to correctly assess the
potential of each growth opportunity. To access and exploit
these opportunities, knowledge and research are required due
to the numerous aspects affecting a market’s complexity.
This thesis was conducted at Sandvik Materials Technology
within the product area Wire and Heating Technology,
producing niched products to sectors as heating industry,
welding, energy, medical and semiconductor industry. The
growth within the energy segment is one of the key success
factors for Sandvik Materials Technology and a continued
evolvement in this segment is a part of their strategy. As a
result of competitor entries into the African market, Wire
and Heating Technology is now looking to identify new
market opportunities in Africa.
Purpose: The purpose of this thesis is to increase the understanding,
and to present an approach, of how to identify new market
entry opportunities, specifically in Africa.
The aim is to provide Wire and Heating Technology with a
number of propositions of which selected markets they could
enter and how to enter these markets.
Delimitations: This thesis will cover products aimed towards the oil and gas
industry, in this case products within the product accounts
wirelines and welding products. The African countries that
IV
this thesis will focus on are Nigeria, Algeria, Angola and
Libya.
Methodology: The approaches for this thesis were descriptive and
exploratory. Two qualitative case studies have been
performed to serve the purpose. One is the study of the
energy market in Africa and which potential countries and
regions Wire and Heating Technology could possibly enter.
The other is a study of Wire and Heating Technology’s
current methods and situations regarding production,
distribution, customers and competitors. Primary and
secondary data have been collected through semi-structured
and unstructured interviews, observations, and desk studies
containing both public and restricted documents.
Theoretical Frame
of Research: A Market Entry Analysis Framework has been developed
and used to cover relevant areas that are important when
pursuing a market entry, and these areas are the macroenvironment,
production and distribution, customers and
market, and competitors. Research questions were
formulated in order to respond to these areas, and have been
answered with the support of different, suitable frameworks
and models. There have been modifications of some models
to better suit the research questions.
Conclusion: After analyzing the selected markets, different possibilities
of how to enter these markets were analyzed. This resulted in
a number of propositions to Wire and Heating Technology
and the two product accounts wirelines and welding
products.
The propositions for wirelines are;
- A field sales representative or an agent in Nigeria, with
products shipped from Brazil if possible
- An agent in Algeria, where the distribution from Sweden is
preferable
- An agent in Angola, with products shipped from Brazil if
possible
The propositions for welding products are;
- A distributor in Nigeria, with products shipped from Brazil
if possible
- A distributor in Algeria, where distribution of products are
made from Italy, the Netherlands or Sweden
- A distributor in Angola, with products shipped from Brazil
if possible (Less)
Please use this url to cite or link to this publication:
author
Berninger, Cecilia and Otterbeck, Elin
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Market entry, Market Entry Analysis Framework, oil and gas, Africa, Nigeria, Algeria, Angola, Libya, wirelines, welding products
other publication id
14/5500
language
English
id
4647335
date added to LUP
2014-09-16 14:20:26
date last changed
2014-09-16 14:20:26
@misc{4647335,
  abstract     = {Background and Problem Discussion: In order for companies to develop their businesses, it is vital
to identify and select new market opportunities. Expanding
into a new market and to develop a market entry strategy
involves a great deal of market research, a thorough analysis
and it takes an appropriate process to correctly assess the
potential of each growth opportunity. To access and exploit
these opportunities, knowledge and research are required due
to the numerous aspects affecting a market’s complexity.
This thesis was conducted at Sandvik Materials Technology
within the product area Wire and Heating Technology,
producing niched products to sectors as heating industry,
welding, energy, medical and semiconductor industry. The
growth within the energy segment is one of the key success
factors for Sandvik Materials Technology and a continued
evolvement in this segment is a part of their strategy. As a
result of competitor entries into the African market, Wire
and Heating Technology is now looking to identify new
market opportunities in Africa.
Purpose: The purpose of this thesis is to increase the understanding,
and to present an approach, of how to identify new market
entry opportunities, specifically in Africa.
The aim is to provide Wire and Heating Technology with a
number of propositions of which selected markets they could
enter and how to enter these markets.
Delimitations: This thesis will cover products aimed towards the oil and gas
industry, in this case products within the product accounts
wirelines and welding products. The African countries that
IV
this thesis will focus on are Nigeria, Algeria, Angola and
Libya.
Methodology: The approaches for this thesis were descriptive and
exploratory. Two qualitative case studies have been
performed to serve the purpose. One is the study of the
energy market in Africa and which potential countries and
regions Wire and Heating Technology could possibly enter.
The other is a study of Wire and Heating Technology’s
current methods and situations regarding production,
distribution, customers and competitors. Primary and
secondary data have been collected through semi-structured
and unstructured interviews, observations, and desk studies
containing both public and restricted documents.
Theoretical Frame
of Research: A Market Entry Analysis Framework has been developed
and used to cover relevant areas that are important when
pursuing a market entry, and these areas are the macroenvironment,
production and distribution, customers and
market, and competitors. Research questions were
formulated in order to respond to these areas, and have been
answered with the support of different, suitable frameworks
and models. There have been modifications of some models
to better suit the research questions.
Conclusion: After analyzing the selected markets, different possibilities
of how to enter these markets were analyzed. This resulted in
a number of propositions to Wire and Heating Technology
and the two product accounts wirelines and welding
products.
The propositions for wirelines are;
- A field sales representative or an agent in Nigeria, with
products shipped from Brazil if possible
- An agent in Algeria, where the distribution from Sweden is
preferable
- An agent in Angola, with products shipped from Brazil if
possible
The propositions for welding products are;
- A distributor in Nigeria, with products shipped from Brazil
if possible
- A distributor in Algeria, where distribution of products are
made from Italy, the Netherlands or Sweden
- A distributor in Angola, with products shipped from Brazil
if possible},
  author       = {Berninger, Cecilia and Otterbeck, Elin},
  keyword      = {Market entry,Market Entry Analysis Framework,oil and gas,Africa,Nigeria,Algeria,Angola,Libya,wirelines,welding products},
  language     = {eng},
  note         = {Student Paper},
  title        = {Identifying Market Entry Possibilities in Africa},
  year         = {2014},
}