Country Risk and Strategic Planning Analysis Paper
There are many risks to consider when conducting business in another country. Competitive risks must be taken into consideration when providing services and products to another market. In 2008, Prime Minister Manmohan Singh released India’s first National Action Plan on Climate Change (NAPCC) the plan outlined existing and future policies and programs addressing climate mitigation and adaptation (Singh, 2012). The statement by the Prime Minister sparked the interest in entrepreneurs to dive into an emerging market that welcomes change. The NAPCC also says these national measures would be more successful with assistance from developed countries, and pledges that India’s per capita greenhouse gas emissions “will at no point exceed that of developed countries even as we pursue our development objectives.” (Singh, 2012). Indian based businesses such as Moser Baer, are preferred for government projects because it supports national growth. International companies from China and the US are steadily growing in the region because they are cheaper, provide financing, and can provide larger capacity orders.
Competition is controllable as long as US solar sales have an edge on the market and provide a product that the competitors do not have. The edge is better financing and longer lasting product that produces more power. Chinese companies are exporting solar panels that last 15 years with 10 Gig watts of power per day. The US company will provide a 20 year guarantee with a output of 10 Gig watts of power per day ("Smart Planet", 2012).
To be profitable there has to be a strategy to keep shipping cost down, since taxes and tariffs will be of no concern. A US governmental tax break will provide the edge need temporarily on exported sales of alternative energy goods and long term the company will rely on higher sales and multinational factories to produce solar panels. To sustain a viable business that will not be overrun by government policies in India, local
Competition is controllable as long as US solar sales have an edge on the market and provide a product that the competitors do not have. The edge is better financing and longer lasting product that produces more power. Chinese companies are exporting solar panels that last 15 years with 10 Gig watts of power per day. The US company will provide a 20 year guarantee with a output of 10 Gig watts of power per day ("Smart Planet", 2012).
To be profitable there has to be a strategy to keep shipping cost down, since taxes and tariffs will be of no concern. A US governmental tax break will provide the edge need temporarily on exported sales of alternative energy goods and long term the company will rely on higher sales and multinational factories to produce solar panels. To sustain a viable business that will not be overrun by government policies in India, local
References: Singh, S. (2012, June 5). India 's fledgling solar-equipment industry under Chinese onslaught. The Economic Times. Retrieved from http://articles.economictimes .indiatimes.com/2012-06-05/news/32055830_1_solar-equipment-solar-power-lanco-solar Center for Climate and Energy Solutions. (2012). Retrieved from http://www.c2es.org/international/key-country-policies/india/climate-plan-summary Smart Planet. (2012). Retrieved from http://www.smartplanet.com/blog/global-observer/india- expands-fastest-on-solar-energy/5980