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Czech republic


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Czech republic

  1. 1. COMPANY PROFILE<br />Our company is “RBKASR autos “ deals in automotive industry business .It is among the top five auto company in, our home country Malaysia We are now interested in expanding our business for that we chose to operate in Czech Republic .<br />We are in manufacturing of low end four wheelers <br />
  2. 2. AUTO INDUSTRY IN CZECH <br />success breeds success and his adage certainly epitomize the Czech republic ,according to fdi magazine ,in 2002-04 the Czech republic secured more automotive R&D projects than any other country in Europe <br /> <br />already accounting for 20.02% of manufacturing output and 20.02% of Czech exports in 2007,the automotive sector ,with over 120,000 employees and half of the worlds top fifty component manufacturers, is a powerful engine of Czech economy <br /> <br />Ernst and young ranked Czech republic as the worlds leading location for automotive –component plant for consecutive 3 years <br /> <br /> <br />With many major market players like Skoda ,Tatra continental,denso etc. in Czech market competition is tough <br /> <br />
  3. 3. - More than 90% of automobile production in the Czech Republic is exported.- Cars and LCVs dominate automobile production in the country.- Sales of used cars have outperformed the sales of new cars in the Czech Republic.- Passenger car stock is expected to reach 418.5 per 1000 people in the country by 2011.- Car and LCV sales are expected to increase at a CAGR of 21% from 2008 to 2011.- Skoda dominates the car & LCV production by accounting for more than 50% of the industry production.- Motorcycle imports increased by 53% as compared to a 36% rise in sales of new motorcycles from Jan-Sep’ 2006 to Jan-Sep’ 2007.<br />
  4. 4. The automotive industry fueled by foreign companies directly investing into the country has become one of the main forces driving economic growth in the Czech Republic.<br /> -Automotive industry accounts for 23% of manufacturing output and 25% of Czech export. [1,5] - More than 90% of automobile production in the Czech Republic is exported. [4]<br />- More than 130,000 workers are employed in the automotive industry. In certain regions, such as Liberec and Southern Bohemia, the industry comprises more than 75 percent of all investments. [6]<br />Czech Republic is fourth most attractive automotive Research and Development country in the world behind only US, China, and India according to FDI magazine statistics<br />
  6. 6. POLITICAL <br />The Czech Republic is a pluralist multi-party parliamentary representative democracy, with the Prime Minister as head of government. The Parliament is bicameral, with the Chamber of Deputies and the Senate  .<br />The members of the Chamber of Deputies are elected for a four year term by proportional representation, with a 5% election threshold. There are 14 voting districts, identical to the country's administrative regions. The Chamber of Deputies, the successor to the Czech National Council, has the powers and responsibilities of the now defunct federal parliament of the former Czechoslovakia.<br />
  7. 7. ECONOMY <br />The Czech Republic possesses a developed, high-income[ economy with a GDP per capita of 82% of the European Union average.[33]One of the most stable and prosperous of the post-Communist states, the Czech Republic has seen a growth of over 6% annually in the last three years. Recent growth has been led by exports to the European Union, especially Germany and foreign investment, while domestic demand is reviving.  It has recently agreed to the sale of a 7% stake in the energy producer,CEZ Group, with the sale of the Budějovický Budvar brewery also mooted.<br />On 1 January 2009, former Czech PM, Mirek Topolánek, declared that on 1 November 2009, the Czech government will announce a fixed date for euro adoption, since the country "currently fulfils all criteria for adoption of the euro", however his subsequent deposition has rendered this deadline moot.[3<br />However, the 2007 deficit has been 1.58% GDP and the 2008 deficit is expected at 1.2% GDP,[39] according to EU accounting rules, far better than original projections.<br />
  8. 8. SOCIAL ANALYSIS <br />According to the 2001 census, the vast majority of the inhabitants of the Czech Republic are Czech (94.24%) (including Moravians andSilesians). The most numerous national minorities are: Slovaks (1.89%); Poles (0.51%); Germans (0.38%); Ukrainians (0.22%);Vietnamese (0.17%); Hungarians (0.14%); Russians (0.12%); Romani (0.11%); Bulgarians (0.04%); and Greeks (0.03%).[57] According to some estimates, there are actually at least 250,000 Romani people in the Czech Republic.<br />There were 436,116 foreigners residing in the country in October 2009, according to the Czech Interior Ministry,[60] with the largest groups being Ukrainian (132,481), Slovak (75,210), Vietnamese (61,102), Russian (29,976), Polish (19,790), German (14,156), Moldovan (10,315), Bulgarian (6,346), Mongolian (5,924), American (5,803), Chinese (5,314), British (4,461), Belarusian (4,441), Serbian (4,098), Romanian (4,021), Kazakh (3,896), Austrian (3,114), Italian (2,580), Dutch (2,553), French (2,356), Croatian (2,351), Bosnian (2,240), Armenian (2,021), Uzbek (1,969), Macedonian (1,787) and Japanese (1,581)<br />
  9. 9. Technological <br />In 2005, according to the Czech Statistical Office, 65.4% of electricity was produced in steam, combined and combustion power plants (mostly coal); 30% in nuclear plants; and 4.6% from renewable sources, including hydropower. <br />The Czech Republic has the most Wi-Fi subscribers in the European Union. By the beginning of 2008, there was over 800 mostly local WISPs, with about 350,000 subscribers in 2007. Mobile internet is very popular<br />In 1987–97, total expenditures for research and development amounted to 1.2% of GNP; 1,222 scientists and engineers and 693 technicians per million people were engaged in research and development.<br />
  10. 10. ENVIORMENTAL ANALYSIS <br />The Czech Republic lies mostly between latitudes 48° and 51° N (a small area lies north of 51°), and longitudes 12° and 19° E.<br />The Czech Republic has a temperate continental climate, with relatively hot summers and cold, cloudy and snowy winters. Most rain falls during the summer. The temperature difference between summer and winter is relatively high, due to the landlocked geographical position.<br />The coldest month is usually January, followed by February and December. During these months, there is usually snow in the mountains and sometimes in the major cities and lowlands. During March, April and May, the temperature usually increases rapidly<br />
  11. 11. Technological Segment<br />Environment<br />Aluminum<br />
  12. 12. LEGAL ANALYSIS <br />The Czech Republic features a system of laws which prohibits employment discrimination on the basis of race, sex, language, religion, faith, political views, and sexual orientation. <br />Workers' unions were a fixture of the communist system. After the end of communism in 1989, the communist-affiliated unions rapidly declined in popularity. Laborers now tend to belong to non-affiliated unions, and approximately two-thirds of all workers are union members.<br />There are relatively few restrictions on imports into Singapore.<br />
  13. 13. PORTER’S 5 FORCES <br />
  14. 14. Five Forces Within Auto Industry<br />Threat of New Entrants<br />Bargaining Power of suppliers<br />Bargaining power of buyers<br />Threat of substitute products<br />Rivalry among competing firms<br />
  15. 15. Threat of New Entrants<br />Slow sluggish state of economy<br />Personal consumption declined from 4.5 to 2.9%<br />Productivity decreased in manufacturing level<br />Automotive sector has no space for new entrants <br />Small demand base and wide choice<br />High Fixed cost and constant R&D<br />
  16. 16. Bargaining Power of Buyers and Suppliers<br />Automakers design and assemble, suppliers have little responsibility<br />Trust has been scarred by Ford-Firestone problem.<br />Essentially little power is given to suppliers<br />Japanese emphasize trust in suppliers allowing for collaborative design efforts<br />Corporate culture allows for such an arrangement to work<br />
  17. 17. Bargaining Power of Buyers<br />Customers take over management of world’s car business.<br />Over capacity - wider choice – zero switching cost<br />More discerning customers<br />Dealer Freedom<br />Better-quality products<br />Consumers take advantage of current quality in product<br />
  18. 18. Threat of substitute products<br />Natural gas<br />Electricity<br />Ethanol<br />Vegetable oil<br />Sunlight<br />Water<br />
  19. 19. Intensity of Rivalry among Competitors<br />Gas crisis during 1980’s and 90’s<br />Foreign Trade increased intensity of rivalry<br />Export becomes essential to expanding and competing <br />
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  22. 22. General Environment<br />Demographic Segment<br />Population<br />Age<br />Internet<br />Income Distribution<br />
  23. 23. Socio cultural Segment<br />Jobs<br />Women in the Workforce<br />Consumers<br />
  24. 24. Economic Segment<br />Very International, with the main places being United States, Europe, and Japan<br />Historically auto stocks move with direction of North American sales cycle<br />Until September U.S. retail car and light truck sales declined in nine of last ten months<br />
  25. 25. Political/Legal Segment<br />Global Agreement on Vehicle Regulations<br />Trade barriers<br />
  26. 26. Helpful<br />Harmful<br />Internal Origin<br />External Origin<br />
  27. 27.
  28. 28. PROMOTION STRATEGY <br />Advertising:  I<br />Public relations<br />Sales promotion<br />Personal selling<br />Internet Promotion<br />We are also planning to use push and pull strategy for marketing our product <br />
  29. 29. MARKET ENTRY <br />RBKASR autos is mainly focusing on <br />Franchising :As practiced in retailing, franchising offers franchisees the advantage of starting up quickly based on a proven trademark, and the tooling and infrastructure as opposed to developing them.<br />Alliances :By this strategy we are planning to join local company which will market our product <br />
  30. 30. THANK YOU<br />ABHISHEK SINGH RAJPUROHIT<br />MBA AD 2012<br />ROLL NO 079 <br />