Entry and marketing strategies for Myanmar : a case study of Hitachi plant engineering and construction | |
| Author | Nakamura, Daiju |
| Call Number | AIT RSPR no. SM-99-72 |
| Subject(s) | Marketing--Myanmar Investments, Japanese--Myanmar |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Abstract | In this study the entry strategy and the marketing strategy of Hitachi Plant Engineering and Construction Co., Ltd. (HPC) in plant industry of Myanmar are designed on the basis of the analysis of Myanmar market, experience of other Japanese companies doing business in Myanmar, and analysis of HPC. HPC has long history, experience and reputation in plant industry of Japan as well as the World. To date HPC has established many overseas offices and affiliates, and executed many overseas projects. In order to make sure of his sales and expand market share, HPC formulates the overseas strategy, namely enter into the South East Asia market. At present, HPC has overseas offices and affiliates in Singapore, Philippine, Malaysia, Indonesia, and Thailand. Therefore HPC can possibly enter to the markets of Myanmar, Vietnam, Cambodia and Laos. In Myanmar HPC has experience of the power plant projects (1989) and Hotel construction project (1997), however now HPC has no office in Myanmar. The Myanmar market is now called as "the last frontier market in Asian" and there are many opportunities as well as threats for foreign investors including Japanese companies. Due to the new economic policy, since 1992, Myanmar has managed to maintain a positive GDP growth rate, and average annual GDP growth rate of 8.2%. The government policy has accelerated the demand growth in the market of electricity, cement, buildings, hotels, oil & gas, port facility, railway, airport, and factories. On the other hand, Myanmar has still many bottlenecks such as political instability, high inflation rate, unrealistic foreign exchange, and poor infrastructure, however these difficulties are seemed to be changing into better situation recently. There has been a historical relationship between Japan and Myanmar from World War II. Japan is now the main business partner as to the import to Myanmar, and the accumulated amount of Official Development Assistance (ODA) from Japan also is very huge. After the enforcement of new economic policy and foreign investment law, the direct investments by Japanese companies has been growing, and at present Japan is the ninth largest foreign investor in Myanmar. Through the external analysis of Myanmar in this study, it is found that Myanmar has really potential and beneficial markets for HPC so that HPC should enter into this market now. HPC can take many advantages of the Myanmar market as the first mover. In order to enter into the market, HPC should select Branch status as an entry mode. HPC should select the building facilities business as his target market in Myanmar since the markets of Hotel, office and factory building are now drastically growing compared to the other plant business. As the marketing objective of HPC in this market, market penetration and securing market share should be selected. As for positioning in target market, HPC should be positioned as same quality to Japanese competitors, lower price than Japanese competitors in plant price, and lowest in total plant price. HPC's product should be differentiated for reducing total plant price. Product price should be penetrating price, namely relatively low cost at first. In order to promote the business, HPC organize the strategic personal selling in the Myanmar market with cooperation of sale staff in Japan as well as Singapore. Then after the political situation are more stabilized and HPC can accumulate experience and reputation in the market, HPC should start to expand his business activity in Power plant, Cement plan, Chemical plant and other plants continuously. |
| Year | 1999 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Johri, Lalit M.; |
| Examination Committee(s) | Bechter, Clemens ;Speece, Mark; |
| Scholarship Donor(s) | Hitachi Plant Engineering and Construction Co., Ltd.; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1999 |