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MARKET ENTRY IN

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by

Ylva Högnäs

on 28 October 2015

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Transcript of MARKET ENTRY IN

What Skanska thinks is attractive about a new market
Information about Kuwait and the Kuwaiti market
How to enter
Pros and cons of entering
Conclusion: Is it a match?

Skanska expanding
- a potential
market entry in Kuwait

The five Zeros
Ylva Högnäs, Josefin Wallberg,
Mathias Lundqvist & Hiu Lam Cheung

Agenda of the Presentation
Seven parameters of
attractiveness
Kuwait
3.7 million people
An annual growth of 4.34 percent
Gulf Corporation Council (GCC)
economy in kuwait
Rich country due to the oil sector
GDP of 2015 is US $181 billion
GDI per capita is US $52 000
LEGAL FRAMEWORK
Foreign direct investment law
The law offers foreign investors the ability to own
or increase ownership in a Kuwaiti
company to 100 percent
New law for domestic worker
The Kuwaiti legislators’ adopted a new law
giving domestic workers enforceable labor rights
The right to a weekly day off
A 12-hour working day with rest
30 days of annual paid leave
The Government
Public procurement
Five-year development plan from 2015 to 2020
Spend $116 billion on construction and infrastructure
PPP- projects
Acquire UGCC
Why UGCC?
Active in Kuwait for more than 35 years
Specialize in building construction & civil infrastructure
Ethical, health, safety, and environmental issues
The cultural differences between Kuwait and Sweden
KNOWLEDGE TRANSFER
UGCC's knowledge about the market
Explicit and Tacit knowledge
The role of knowledge senders and receivers

Relationships
Trust and commitment
Creating value
Most important customer: the Government
Corruption and transparency problem
The new network
entering a new market
Knowledge and resources in the infrastructure market
Advantages of the Location
How to enter: acquisition

Pros and cons
Conclusion
Fulfilled attractions
Partly fulfilled attractions
not fulfilled attractions
Full transcript