International Business Consultancy Project
This report is written in behalf of EasySwitch. EasySwitch is currently active in the Dutch energy comparing market. It is a company that compares energy prices with an online tool, which makes it easy for consumers to switch fast and effectively to the cheapest energy supplier.
Expanding business abroad
EasySwitch is currently thinking about expanding their business and because the possibilities on Dutch market are limited, their interest lie abroad. Therefore it is important to research if it is profitable for EasySwitch to go abroad, and to find out what the exact possibilities are. The main question of this research report is: Which actions should EasySwitch take to enter a foreign market?
Country comparison and selection
To answer this question, a selection of countries (Spain, Germany, Poland, Italy, Austria, France and Belgium) were analyzed to select the country with the most potential. It turns out that Spain is the country with the most potential. This conclusion is based on specific criteria; (e.g. Open/closed energy market, potential turnover, corruption, competition, trade environment, attitude towards foreign companies and number of households that are willing to switch). In the overall score (spreadsheet: country selection) Spain and Italy are marked with the highest scores and therefore are the countries with the most potential. EasySwitch preferred Spain because of the high corruption rate in Italy.
The second part of the research is completely based on the Spanish market. Specific data about culture, the energy market, the economic situation, competition, regulation, taxes, entry barriers, e-commerce and the working environment were analyzed. The conclusion of the country selection and the specific information about the Spanish market has shown that there still are opportunities for EasySwitch to enter the Spanish market. Although, there are some risks attached when entering the Spanish market (Economic future of Spain and the competition).
Entry strategy possibilities
There are several entry strategies that are applicable for EasySwitch in the Spanish market. These are; opening a new company branch, collaborate or take over an existing energy comparing service. These strategy options are elaborated with financial scenarios. The market analysis (and the financial report) shows that opening a new company branch would be the best choice.
Actions to take when entering the Spanish market
These are the actions (steps) that EasySwitch has to take when entering the Spanish market: 1. Appointing a project manager.
2. Set goals and strategy.
3. Obtain a certification of uniqueness of proposed company name from the Mercantile Register. 4. Register company at Spanish Chamber of Commerce.
5. Open a bank account for the company; deposit capital in the bank and obtain a deposit certificate. 6. Grant a public deed of incorporation before a public notary. 7. Submit Declaración Censal de Inicio de Actividad and obtain the Tax Identification Number (NIF) from the Delegación Provincial de la Agencia Estatal de la Administración 8. Obtain a tax declaration of exemption from the Dirección General de Tributos. 9. File the public deed of incorporation of the company for its registration with the Mercantile Registry. 10. Legalize company books.
11. Submit a notification of start of operations (declaracién responsable) to the municipality. 12. Notify the Delegación Provincial de la Consejería de Trabajo e Industria. 13. Establish and open company’s branch in Spain.
14. Hire Spanish employees (IT-specialist, back-office employees). 15. Acquisition of Spanish energy suppliers.
16. Setting up Spanish EasySwitch...
Please join StudyMode to read the full document