Improving Market Analysis in Biogas and Biodiesel for BioGTS Ltd. : Development and Testing an Analytical Tool in Latvia and Lithuania

Abstract

The growing need to deploy renewable energy sources over fossil fuels is stimulated by social concerns about the ingravescent environmental state. In addition, there are government policies necessitating manufacturers and whole regions, for example the EU, to achieve certain renewable energy targets by a defined time. Therefore, companies offering sustainable bioenergy solutions are welcome to expand their business internationally to have an impact on unprecedented environmental problems. However, prior to making a new market entry decision, a company has to analyse the potential country and the target market to define their favorability. The objectives of this study were (a) to create a market analysis tool for the assignor company to utilize in the future when considering new market entries, and (b) to apply the tool in order to explore the situation of the Latvian and Lithuanian biogas and biodiesel markets.

The theoretical base for the qualitative research includes the key concepts of market analysis and exporting market entry modes. Secondary data was analysed to examine the biogas and biodiesel markets of Latvia and Lithuania. Primary data was collected through semi-structured interviews, and in total, seven informants participated. The group of interviewees was of a versatile nature. The respondents represented different yet relative to the research backgrounds. The interview process ended once data saturation was reached.

The results indicated the extent of applicability of the market analysis tool. Suggestions for further improvement of the tool were provided. An examination of the two markets was performed by utilizing the market analysis tool. Based on the findings, a proposal for the assignor company concerning market entry decisions into Latvia and Lithuania was made.