Its is a presentation on Country risk analysis and evaluation of market entry strategies. Advantages and disadvantages of the same

1. Country Risk
Analysis: NEPAL
Submitted by:
Nishant Haran
FPB1517/007
Section-B
PGDM-1517
Submitted to:
Prof. Rajiv

2. Reasons for choosing Nepal
• Raw Material source
• Emerging Market
• Creating opportunities for the people in Nepal
• Neighbouring country
• To build long term relation ship
• To help Nepal natural calamities it faced
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3. Environmental Analysis(1/2)
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Legal factor
• Emergency situation
• Less Tax
• Free market economy
• Good relation with India
• Less Documentation
• No standards required
Ecological
Factor
• Climate
• Land use
• No area with ocean and
seas
• Low reserves
• Natural Disasters
Political
Factor
• Terrorism
• Influences in India
• Instability
• Longer decision making
time

4. Environmental Analysis(2/2)
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Economical
• Poor economy
• Population growth
• Economic growth
• Unemployment
• Poor infrastructure
• Less rural development
Social Factor
• Human development
• Increased expectancy
• Gender discrimination
• Rise in educational level
• Religion
• Nuclear and joint family
• Ethical behaviour
Technological
• Backdated technology

5. Porters Five Diamond Theory
Firm strategy,
structure and
rivalry
Demand
condition
Related and
supporting
industries
Factor
condition
Economic Growth
Weak Commercial service
No Backward linkage
Poor infrastructure
Raw capital
Cheap labour
Low cost of capital
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6. Strategies to enter into Business with Nepal(1/2)
Exporting
Advantages Disadvantages
Avoidance of initial
high cost
High transportation
cost
Gather experience Problem with local
distribution network
Joint venture
Advantages Disadvantages
Access to local
partners knowledge
Lack of control
Sharing costs Inability to enter into
global strategic
coordination
Politically acceptable Lack of inefficient
technology
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7. Strategies to enter into Business with Nepal(1/2)
Wholly owned subsidiary
Advantages Disadvantages
Protection of technology High cost
Ability to control High risk
Ability to realize location and experience
economics
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8. Recommendation
Export
Level of risk
Political
Instability
Availability of
raw materials
Market
expansion
Government
restrictions
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Action plan
Setting up office
Network based
distribution
JIT approach
Global product
Research and
development
Services

9. Conclusion
High growth potential though have economic problems
Satisfactory environmental analysis
Should go for exporting rather than any other form of trade
Following the action plan will lead to the destination
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10. Country Cluster
• Company entering into the Nepal have advantage of entering into
• India
• Sri Lanka
• Pakistan
• Bangladesh
• Afghanistan
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11. Thank you for your kind patience
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