Entering the Israeli market for Finnish technology company : case: Witrafi Oy
Phan, Phung (2015)
Lahden ammattikorkeakoulu
2015
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015112818308
https://urn.fi/URN:NBN:fi:amk-2015112818308
Tiivistelmä
With its rapid development in technological industry, Israel has a relatively complicated transportation and parking structure, which is criticized by most of its people and leads to the increase in traffic congestion and severe air pollution issue. Therefore, Israel is in substantial need of an intelligent transportation and parking system which could assist it in managing and improving its traffic conditions. Meanwhile, the Case Company is seeking for opportunities to expand to the Middle East region. Acknowledging the Case Company’s desire as well as the existing demand in Israel, the purpose of this thesis is to aid the Case Company in expanding to the Middle East by giving the insights of one of the markets in this region – Israel and designing an entry plan to penetrate this market.
In order to reach the research objective, this thesis is conducted based on Hollensen’s five stage model and divided into two main parts – a theoretical and an empirical part. The theoretical part provides the literature review essential for the implementation of the research while the empirical part utilizes the mentioned theories to make practical evaluation. In general, the empirical work involves three main sections: the internal analysis of the Case Company in which its strengths and weaknesses and its product features are investigated; the external analysis of the Israeli business environment generally and its parking industry specifically as well as the market segmentation to identify the target customers; and eventually the internationalization plan which proposes the most suitable choice of entry mode and distribution strategies for the Case Company.
There are two primary findings in this thesis. First, the Israeli market has a lot of potential for the Case Company to penetrate thanks to its rapid growth rate in technological industry. Moreover, the country also invests significantly to support the enterprises operating in this section as well as enforces many regulations which encourage foreign corporations’ investment. Second, based on its competences and weaknesses, the Case Company is suggested to deploy direct export and direct distribution channel as well as exclusive coverage strategy to penetrate the Israeli parking industry successfully.
In order to reach the research objective, this thesis is conducted based on Hollensen’s five stage model and divided into two main parts – a theoretical and an empirical part. The theoretical part provides the literature review essential for the implementation of the research while the empirical part utilizes the mentioned theories to make practical evaluation. In general, the empirical work involves three main sections: the internal analysis of the Case Company in which its strengths and weaknesses and its product features are investigated; the external analysis of the Israeli business environment generally and its parking industry specifically as well as the market segmentation to identify the target customers; and eventually the internationalization plan which proposes the most suitable choice of entry mode and distribution strategies for the Case Company.
There are two primary findings in this thesis. First, the Israeli market has a lot of potential for the Case Company to penetrate thanks to its rapid growth rate in technological industry. Moreover, the country also invests significantly to support the enterprises operating in this section as well as enforces many regulations which encourage foreign corporations’ investment. Second, based on its competences and weaknesses, the Case Company is suggested to deploy direct export and direct distribution channel as well as exclusive coverage strategy to penetrate the Israeli parking industry successfully.