2. OVERVIEW
2
Agenda:
1- Analysis of the cultural environment
2- Analysis of the international strategy and global expansion.
3- Analysis of the Entry mode.
4- Analysis coordination and control the international operations
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
3. OVERVIEW
3
A born global entrepreneurial company established in
2010, filling a niche market by providing highly
customized green power solutions to mobile
operators in harsh environments.
YONA has an excellent decision
making speed. It can tolerate high
risk, and it is very flexible,
pragmatic and innovative.
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
5. STRATEGY & STRUCTURE
5
YONA is a born global firm. From its inception, the firm has always viewed its
marketplace as global than domestic Canada
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
6. COMPETITIVE ADVANTAGE
6
Competitive Advantage: Highly customized green power design and extensive technology
research
Sourcing:
Japan,
Germany,
and USA
Jordan
& Qatar
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
7. GREEN POWER FOR GSM
OPERATORS
7
Diesel Generators
Green Energy
1300M People with No Energy
411M People have Mobile Access
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
8. 8
GREEN POWER FOR GSM OPERATORS
Finding:
•Annual diesel consumption for
Telecom will increase to more than
150 million barrels.
•Increasing annual cost over $19
billion in 2020, or $5 Per mobile
user per year.
•About 45 million tons of CO2 per
year will be released.
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
9. GSM INDUSTRY
9
816 Mobile Network Operators 7.43 Billion Mobile Subscribers
Developing World Penetration 90.2% Africa Penetration 69.3%
Target Operators
21 operators
18 M Subscribers
3 operators
53 M Subscribers
7 operators
33 M Subscribers
8 operators
42 M Subscribers
3 operators
30 M Subscribers
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
10. CHALLENGE AND EXPANSION
10
YONA Solution
must be marketed
promptly before
other competitors
dominate the
market
New alternate non-
green power
technology
solutions will
appear in the next
decade
YONA believes that the use of green energy to supply electrical power to base
transceiver stations (BTS) is a strong solution
Potential
Countries to
Expand:
INDIA or
UAE
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
11. CULTURAL CONSIDERATION
11
Power Distance Individualism Masculinity
Uncertainty
Avoidance
Canada vs UAE 59 55 2 32
Canada vs India 42 32 4 12
Syria vs UAE 10 10 2 20
Syria vs India 13 13 4 20
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
12. MARKET SHARE ASSUMPTION
12
UAE ( Serving Middle East Arab States)
Market share 20%
Total possible top line revenue over 3 years $30,400,000
Three years bottom line revenue (35% High Margin) $10,640,000
INDIA (Serving Indian Market Only)
Market share 5%
Total possible top line revenue over 3 years $154,375,000
Three years bottom line revenue (15% Low Margin) $ 23,156,500
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
13. COUNTRY ATTRACTIVENESS
13
FACTORS
Results UAE Results India
Comments
DEMOGRAPHICS 11 18
Given India's population and country size, it has
the advantage over UAE
GOVERNMENT 24 10
Political stability combined with its decision to
peg its currency to the USD gives UAE the
advantage
PHYSICAL
INFRASTRUCTURE
9 8
Good in both countries, with India offering
better road coverage while UAE has better port
and airport facilities.
ECONOMICS 57 27
All economic factors favours UAE over India
(including GDP, Ease of doing business and Tax
Rate)
COMMUNICATION &
ELECTRICITY
INFRASTRUCTURE
34 56
Total number of cell phone users combine with
a lower of access to electricity gives India the
advantage
Total 259 220
India has a clear advantage in terms of
population and cell phone users, but when
reviewing all the factors UAE is a better option
given its overwhelming advantages in terms of
economics and government factors
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
14. OTHER CONSIDERATIONS
14
Social Networks
UAE Banks &
Smooth Cash
Flow
Social Network &
Hub of the ME,
IRENA HQ.
Similar in both
Possible Future
Manufacturing
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
15. INTERNATIONAL STRATEGY & ENTRY
MODE
15
International New Venture
( Born Global)
Global And International
Strategies (First Mover
Advantage)
Choose to Go to UAE -
Subsidiary
• Experience in the UAE and
Strong Network.
• Strong balance sheet.
• Greater Control.
• Greater opportunity to
adapt product to the local
markets.
• Better local image of the
product.
• Key Location.
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
16. STRUCTURE
16
YONA Middle East: Responsible for all project management, implementation, distribution,
sales & marketing for the Middle East region.
YONA Canada: Responsible for project management, distribution, sales and marketing,
support activities and global activities excluding the Middle East region.
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
17. CONTROL MECHANISM
17
YONA should employ output control as its primary control mechanism to ensure the
subsidiary is operating in accordance with the parent company’s plans. In addition,
behavioural controls can also be employed but will be harder to monitor due to limited
HR resources at the head office.
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
19. CONCLUSION
19
Establish a subsidiary in UAE
( First Mover Advantage)
Syria & UAE have the closest cultural
similarities according to Hofstede model
Highly customized green power
Provider to GSM Operator
Global hierarchy controlling thorough
output and behavioural control system
HISTORY VALUE CHAIN INDUSTRY CHALLENGE ANALYSIS STRATEGY IMPLEMENTATION
