Final year project

Market Analysis for Descon HRSG Unit

Salman Javed Khawaja Haris Hassan Younas Umair Shahid Muhammad Saqib Nawaz

The Project
Exporting HRSG units and EPC contractor.
IPP Plants
Middle East

Reason to expand
Excessive production capacity (VISION)To become world class engineering, manufacturing and construction company operating internationally

Opportunity
Identifying the potential markets

Project Objectives
To collect data on the Middle East markets To identify viable markets in the Middle East where the product can be launched To identify priority markets

STRATEGIC MARKET ASSESSMENT AND ANALSYS

Political Condition Screening
Type of Government in the country, Stability of the country and government, Public unrest, armed force role and safety of civil rights.

Economic Condition Screening

Growth rate for the Energy sector, The per capita income of corporate, Economic variables (GDP, GDP growth rate, GDP per capita, Inflation rate, Imports and exports, Interest rates, and economic and investment opportunities in the energy sector.

Continued
Technology Condition
Power sector, electricity producing industries and the improvements in technology that are taking place in the countries. Overview of the Government policies of IPP (Independent power plants).

Competitive Screening
Competitor analysis in the selected countries Analyze the number, size, strength and market value of competitors

Ranking method
Political Economical Global competitive index and the ease of doing business index.

COMPETITIVE ADVANTAGE AND DISTINCITVE CAPABILITY OF DESCON

PEST analysis of DESCON in PAKISTAN
Political , economical, social and technological

Porter Diamond model

Demand condition Related and supporting industries Factor conditions Firm Strategy, Structure and Rivalry

Distinctive capabilities of DESCON Competitive advantage on rivals ROBERT KAPLAN AND DAVID NORTON MODEL
Customer Perspective Internal Perspective Learning and Growth Perspective

ENVIRONMENTAL ISSUES AND EFFECTS

Economic Outlook:Domestic & Global Pace of Technological Change: Global Trade Relations

COMPETITVE ANALYSIS OF DESCON IN MIDDLE EAST COUNTRIES

The main advantages
Price factor with excellent service Quality (licensing of BABCOK power)

The main competitors of DESCON

DOOSAN ALSTOM NEL GM SEIMENS and Chinese companies

Continued
Price
5.5 Million for 110 Mega watt HRSG 20 -25% less then its competitors Chinese companies have quality issues.

Threat
BHEL Minor price difference Almost same quality Edge (DESCON) because of production facility in UAE.

Screening Phase I
Opportunity

All 17 Countries Israel, Iraq, Palestine, Sudan Libya, Syria, Tunisia

Availability of Data

Qualification

Iran, Jordan, Omar, Qatar

Ranking

Markets
Criteria identified nine countries
KSA U.A.E Kuwait Turkey Morocco Bahrain Lebanon Algeria Yemen

Screening Phase II
Macro Level
Political Condition Economic Condition Energy Sector

Micro Level
IPP Policies Competitive Analysis Investment Opportunities Market Size of the Competitors

Opportunity for DESCON

Ranking
Top Five
KSA U.A.E Kuwait Bahrain Turkey

Last Two
Lebanon Yemen

Compared & Consulted foreign ratings

Limitations
Time Availability of data Resource Access to vital data

Conclusion

QUESTIONS?