Management is familiar with international markets Extract up to 90 % of oil from industrial sludge No harmful air emissions Mobile, onsite remedial technology Modular design, easily deployed, avoid transportation cost Reusable, resalable contaminants Own fuel source generation to fire the system Fewer greenhouse gas emissions Weaknesses Still in immaturity stage Insufficient employees No Guarantee that JP will work Low capacity (20,000 tons) Not in a good locations compared to its competitor Limited paten lifetime (will expire in 2019) OpportunitiesHigh entry barrier New regulations for soil treatment market in Canada Deadlines for ending the use and long-term storage BPCS result in strong demand for Asks TIPS technology Exclusive rights to use TIPS in Canada & US in 2002 & in China in 2009 Environmental pollution became big issue in China Exclusive rights to use the technology in China Importation of waste containing pops from province to province was banned in China If JP works, can explore consulting services and other technologies to other parts of China. Threats PC market declining in North OrnerierRenewing contracts could be affected by the economic climate of the day Increased in potential competitors adopting the TIPS technology after 2019 when TIPS will expire LIST banned transporting tot PC contaminated soil trot US to Canada Competitive intensity in China Industry Harder for ASS to gain permissions to other areas in China Key Issue Among several economic problems such as regulatory problems and potential limited markets in Canada and North America, should ASS internationalist into China? Alternatives pros Cons I.Related Limited diversification strategy emphasizing on industrial sludge racket in Canada (Current Strategy) Comparative cost advantages over other conventional disposal methods Other methods create environmental liabilities Land Disposal Restrictions (LDR) in which treated wastes are required to meet specific treatment standards creates demand for Ass’s TIPS in Ontario Paint sludge market is at emerging stage Distance between Ontario and Ass’s facility in Saskatchewan limited the potential for ASS 2, Related Linked extensive diversification strategy pursuing NINES 3 times higher PC market compared to Canada First mover advantageEarly entrant into the emerging environmental market Reduce risk since NINES is a government agency NINES has extensive expertise & experience Free advertising campaign for Ass’s technology Cost of JP is expensive (Investment of S 3. 0 million) JP needs to redesign, engineer, manufacture and market the TIPS in China 3.
Related Linked extensive diversification strategy pursing NAH Solid trust between two entrepreneurs Market Leader in Houseman Excellent infrastructure Oil storage tons capacity) Good location In the center of the world’s largest four fisheriesBiggest commercial petroleum transit base in China Expandable processing from 10,000 tons of oily sludge to 100,000 tons per year Solid assets, a wide range of permits Huge generation of oily sludge waste prayer (up to 180, 000 tons which is 3 % of total amount of oil sludge in China in 2009) Permission to other areas may be an Issue Cost of JP is expensive (Investment of $ 3. 0 million) 4.Licensing with NINES Investment saving Higher and faster return on investment Least costly form of international diversification when licensing Low risk Difficulties for license extension Develop on their own after dropping the license No strong customer relationship Strategic Intent: ASS is seeking opportunities to expand both organically and through acquisition to transform into a more integrated and more diversified waste management company.The vision of ASS is to become a fully integrated environmental service company. Strategic Mission: Saskatchewan-based environmental solutions company growing under Antler’s entrepreneurial direction to become a North American leader in the treatment of soil, sludge ND debris impacted with various organic contaminants with its world class, internationally proven TIPS technology is also building relationships with China to transform from domestic player to extensive international player.Recommendation: prom the above three alternatives, RSI should pursue NAH by using “related linked extensive diversification strategy’ and licensing with NINES to improve their growth potential in China as a first step of expanding internationally.Key Result Areas SST rat egg Objectives License Agreement Develop License agreement to protect both parties’ interest Share potential turns between licensor & licensee Extend the license with NINES until 2019 TO build strong relationship between partners To protect misusages of TIPS technology Advocacy & Lobbying for permission in Other areas in China (NAH) Work With NAH to find ways to advocate TIPS technology & its benefits to the Chinese government Make the information on TIPS technology available to the public to know its benefits Advocate & lobby to Chinese environmental activists & civil societies.To gain permission from Chinese government to operate and expand in there areas Joint Venture (NAH) Share company’s core competencies (know knowledge &TPS technology with NAH) Implement corporate strategy To improve and expand the application opts technology widely and increase firer’5 value by improving its performance To achieve economies of scope Human resource management (NAH) Recruit cross-cultural experienced employees Training for TIPS technology application To cope faith China business cultures when expanding into their market To be globalizes efficiently and effectively with the quality people