Case Study

Technica: Expansion into Africa

Group 4
Fauji Rahman
Felix Arril Simbara Barus
Galuh Hemastiti

Company Profile

Technica was founded in 1983 by Antoine Haddad, who became an electrical engineer
in 1975 and graduated with an MBA in 1982 from the American University of Beirut.
It was established with the mission of providing innovative automation solutions,
handling equipment and turnkey projects for all relevant industries in the Middle East,
Gulf Cooperation Council(GCC) countries, Europe, Asia, and Africa through the design,
manufacturing, Installation, and servicing of Technicas equipment as well as the
integration of its partners equipment.

How can Technica succeed in a new

market?
Melakukan riset pasar.
Memahami kebutuhan pasar yang baru dan menerapkan strategi
glocalization.
Fokus pada inovasi melalui research & development.
Mempekerjakan insinyur dan teknisi yang memiliki kualifikasi
dan skill yang tinggi, dan selalu mengembangkan skill mereka
dengan training.

What are the risks and

opportunities of investing in Angola
and/or Algeria?
o Peluang berinvestasi di Algeria:
Pemerintah membuka pasar untuk investasi asing
Pemerintah berencana selama 5 tahun (2009-2014) menghabiskan $286 miliar
untuk pembangunan infrastruktur
o Resiko berinventasi di Algeria:
Taxes on profit yang tinggi yaitu mencapai 72%
o Peluang berinvestasi di Angola:
Pemerintah fokus pada pembangunan transportasi
Banyak sektor yang belum dikembangkan
o Resiko berinvestasi di Angola:
Tingkat inflasi yang cukup tinggi yaitu 13,47%
Resiko politik yang tinggi karena (16th Political Instability Index)

When is the right time to expand?

Waktu yang tepat untuk melakukan ekspansi
adalah ketika ada pasar baru yang potensial
yang juga mempertimbangkan semua indikator
yang mempengaruhi lingkungan bisnis seperti
ekonomi, politik, sosial, budaya dari pasar yang
dituju.
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What indicators should Technica

use in its analysis of the business
environments?

What are the political, economic, social, and

technological factors that must be considered
before expanding into a new market?
Political factors
Tax policy
Employment laws
Political Stability
Trade restrictions and tarrifs

Economic factors
Economic growth
Inflation rate
Interest rate
Exchange rate

Social factors
Health Consciousness
Population growth rate
Age distribution
Emphasis on safety

Technological factors
R&D activity
Rate of technological change
Cost involved

What are the possible modes of entry

Technica can use to penetrate the new
market?

Ada beberapa alternatif strategi yang bisa dilakukan

Technica untuk penetrasi ke dalam pasar yang baru:
Export Strategy
Licensing Strategy
Joint Venture and Alliance Strategies
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