TABLE OF CONTENT1. Executive summary.22. Country profile.43. Export preliminary74. Political & Legal environment.85. Foreign relations96. Company Profile..10

7. Group structure118. Mission & Vision..12

9. Product line.13

10.Post Sale service15

11.Demand conditions..16

12. Main Competitors.1713. Company analysis1814. Swot analysis....2315. Reasons engagement in internationalization..2416. Entry mode.........2417. Recommendation.2518. Conclusion........2519. Reference.........26Executive Summary

Our company Viaggio (Its an Italian word means Journey) is Bangladeshi joint venture with IRISBUS IVECO of Italy. We mainly import BUS parts from IVECO and assemble them in Bangladesh & export Buses from other country. Now we are planning to enter in Nigeria through a distribution channel. They have the infrastructure and they have huge need for Buses. So its a very potential market for our product.Our company wants to internationalize its product because it wants to expand its market share by gaining access to new markets and also wanted to achieve economy of scale by grabbing the opportunities that the new market provides.

Demand for public transportation is rising day by day in Nigeria. Rising oil and gas price are forcing people to use public transport. Its become very expensive to maintain Private Transport. So our well facilitated city buses will be a great option for them. According to our calculation our target market size is 70% of total population which is 155,215,573. They use public bus as their main medium of transport for day to day journey and rest of the people are not using the public transport. We are targeting those people who are frequent user of public transport.

Irisbus Iveco is an international company that offers a full and continually evolving range of buses and coaches. For many years Irisbus Iveco has pursued a policy of environmental care which has involved continually increasing investments in research and development of environmentally friendly vehicles.This commitment is not limited to compliance with regulations but also to find solutions that ensure maximum efficiency, taking into account customer needs both in terms of performance and profitability.The Irisbus Iveco urban range offers many different lengths, engines and equipments able to meet the requirements of public transport companies and passengers in terms of accessibility and environmental care, for a more and more sustainable mobility.

Country profile:

Background:

Following nearly 16 years of military rule, a new constitution was adopted in 1999, and a peaceful transition to civilian government was completed. The president faces the daunting task of rebuilding a petroleum-based economy, whose revenues have been squandered through corruption and mismanagement, and institutionalizing democracy. In addition, the OBASANJO administration must defuse longstanding ethnic and religious tensions, if it is to build a sound foundation for economic growth and political stability. Despite some irregularities, the April 2003 elections marked the first civilian transfer of power in Nigeria's history.

Location:

Nigeria is located in West Africa, bordered by Benin to the west, Niger to the north, Cameroon to the east and the Atlantic Ocean.Area

923,768 sq. Km

Population

158.2 million

Government type

Republic transitioning from military to civilian rule

Economy - overview:

Oil-rich Nigeria, long hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, is undertaking some reforms under the new civilian administration. Nigeria's former military rulers failed to diversify the economy away from overdependence on the capital-intensive oil sector, which provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of budgetary revenues. The largely subsistence agricultural sector has failed to keep up with rapid population growth - Nigeria is Africa's most populous country - and the country, once a large net exporter of food, now must import food. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingents on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. The government has lacked the political will to implement the market-oriented reforms urged by the IMF, such as to modernize the banking system, to curb inflation by blocking excessive wage demands, and to resolve regional disputes over the distribution of earnings from the oil industry. During 2003, however, the government deregulated fuel prices and announced the privatization of the country's four oil refineries. GDP growth probably will rise marginally in 2004, led by oil and natural gas exports.

GDP$212bn

GDP growth rate

3.4%

Highways

Total: 194,394 km

Country risk analysisNow a days, global business era country risk analysis is mandatory for achieving success. We need to understand what risks are involved in a Subsequently if any foreign investor wants to start business in Nigeria, this is prerequisite to do a broad country risk analysis on the country Nigeria, which will help to deal with Nigerias environment and ultimately which will direct to achieve organizational goal.

Among so many risks, some risks must be identified;

Corruption overall ranking: 137 out of 183 countries (2010) Cultural Issues: Nigeria's capitalist economy was liberalized during the 2000. Bureaucracy: Nigerian government is rarely accountable to public officials.

Criminal activities and fraud: Nigeria consist organized criminal activities.

Unique cultural issue: Nigerian people are very xenophobic.

Extremism: Rarely and creates hostility, havoc and vandalism.

Export Preliminary

For Exporting in the Nigerian state the exporter needs to obtain a certificate. This certificate is known as the SONCAP (Standards Organization of Nigeria Conformity Assessment Programme). The process is mentioned below:

This procedures are only applicable to certain products:

Food Products

Drugs

Medical Products (other than equipment and machines)

Chemicals used a Raw Materials

Military Ware and Equipment

Aviation Related Products

Industrial Machinery for Manufacturing

Used Products (other than Automobiles)

CKD Bicycles, Motorcycles, Automobiles for BonfireManufacturers/assemblers

Political and Legal environment in which the country currently operating

Political Environment:

Nigeria is a Federal Republic modelled after the United States, with executive power exercised by the president and with influences from the Westminster System model in the composition and management of the upper and lower houses of the bicameral legislature. However, the President of Nigeria is both head of state and head of government, and of a multi-party system. Nigerian politics takes place within a framework of a federal, presidential, representative democratic republic, whereby Executive power is exercised by the government. Legislative power is vested in both the government and the two chambers of the legislature, the House of Representatives and the Senate. Together the two chambers make up the law-making body in Nigeria called the National Assembly. The highest judiciary arm of government in Nigeria is the Supreme Court of Nigeria. Nigeria also practices Baron de Montesquieu's theory of the separation of powers. The National Assembly serves as a check on the executive arm of government.

The 1999 constitution provides for a bicameral National Assembly consisting of a 360-member House of Representatives and a 109-member Senate. The president heads the executive branch. The judiciary includes a Supreme Court and lower courts.

In April 2011, the Independent National Electoral Commission organized legislative, gubernatorial, and presidential elections. The opposition Action Congress of Nigeria captured additional governorships and National Assembly seats, although the majority of such positions continued to be held by the ruling PDP. President Jonathan captured 59% of the national vote, beating his main rival, MuhammadBukhara of the Congress for Progressive Change, who won 32%. While imperfect, the elections were considered Nigerias most successful since its return to multiparty democracy in 1999, and reversed a downward trajectory of successively flawed election processes. President Jonathan was sworn in on May 29, 2011.

Foreign Relations:

Since independence, Nigerian foreign policy has been characterized by a focus on Africa and by attachment to several fundamental principles: African unity and independence; peaceful settlement of disputes; nonalignment and non-intentional interference in the internal affairs of other nations; and regional economic cooperation and development. In pursuing the goal of regional economic cooperation and development, Nigeria helped create the Economic Community of West African States (ECOWAS), which seeks to harmonize trade and investment practices for its 15 West African member countries and ultimately to achieve a full customs union. Over the past decade, Nigeria has played a pivotal role in the support of peace in Africa. It has provided the bulk of troops for the UN peacekeeping mission in Sierra Leone (UNAMSIL), the UN Mission in Liberia (UNMIL), and many of the troops to the African Union Mission in Sudan (AMIS).

Nigeria has enjoyed generally good relations with its immediate neighbours. A longstanding border dispute with Cameroon over the potentially oil-rich Bakassi Peninsula was addressed by International Court of Justice (ICJ) in The Hague in 2002. The ICJ awarded most of theCompany Profile:Irisbus Iveco is an international company that offers a full and continually evolving range of buses and coaches.

For many years Irisbus Iveco has pursued a policy of environmental care which has involved continually increasing investments in research and development of environmentally friendly vehicles.

This commitment is not limited to compliance with regulations but also to find solutions that ensure maximum efficiency, taking into account customer needs both in terms of performance and profitability.

History:

Fiat Industrial began operations on the 1st of January 2011 following the demerger of the activities of Iveco, CNH and FPT Industrial from Fiat S.p.A.

This demerger gave life to an industrial and commercial enterprise (listed on the Milan Stock Exchange) with a clear strategic focus, financial solidity and the independence necessary to realize the maximum potential for its trucks and commercial vehicles, agricultural and construction equipment and industrial and marine powertrain businesses.

The group has behind it the vast know-how of Fiat which began producing tractors, trucks, buses and marine engines more than 100 years ago. The CNH and Iveco brands inherited a grand tradition of historic achievements and technological know-how. They have continued to build on that base and today, with their proven experience and innovative capacity, are among the global leaders in their respective sectors.

Group Structure:

VISION

To be the best-in-class performer in our industry continuously delivering value, quality and success to our customers and their businesses.MISSION

To deliver solutions to passenger transport industry leveraging our excellent know-how, our care for people and our partnerships worldwide.

ValuesCommitment:We take responsibility in all we do. We challenge our working practices with a view to take upon ourselves the need of customers, the shareholder, our colleagues and a society as a whole. For the purpose, in our everyday business as well as innovation efforts we seek continues product and service improvement with priorities on customer productivity, environmental care and safety.Reliability:

We consider delivering as a way of life both across our organization and towards our customers. Iveco people create and spread our company reputation through delivering reliable and quality products.Our product line

The Irisbus Iveco urban range offers many different lengths, engines and equipments able to meet the requirements of public transport companies and passengers in terms of accessibility and environmental care, for more and more sustainable mobility.

IRISBUS IVECO city buses

IRISBUS IVECO intercity buses

IRISBUS IVECO tourist buses

IVECO minibusesOur product

Based on our marketing research and customer demand analysis, we decided to export the following type of bus to Nigeria. Bus IRISBUS IVECOCROSSWAY LE CITY 12M - 2 Door

The new low-floor Crossway LE city bus chain IRISBUS IVECO, designed and built in Vysokm Mt, is named after the original Crossway bus. The Crossway LE bus fulfils many of the requirements of the city bus Citoles. The Crossway LE is low-riding in the front of the bus, making boarding the bus easy and comfortable. This also makes the bus affordable. The bus is also equipped with a ramp for disabled people and kneeling system.

The new designs were based upon those of the Karosa B 900 due to its success as a city bus: Low fuel consumption, great safety record, comfort and easy access. The IRISBUS IVECO Crossway LE CITY bus is 12m in length.

IRISBUS IVECO CROSSWAY LE CITY Bus 12M - 2 doors

CROSSWAY LE CITY 2D - TECHNICAL DATA length 11 995mm, width 2 550mm, height 3 125mm

maximum load on front axle 6 500kg

maximum load on back axle 11 500kg

front door step height 320mm

middle door step height 330 mm

number of available seats 33-38, up to 75 standing positions ENGINE engine Iveco Tector / Cursor 8 (EURO 4)

Max. power 194 kW / 243 kW

torque 1 000 Nm / 1 500 Nm

VOITH automatic transmission

MERITOR back axle with easy reduction

wheels with disk brakes, ABS, ASR

Post Sale Services: warranty and post warranty service and all other repairs on Irisbus Iveco, Karosa, S 91, Beulas buses

vehicle diagnostics

body work and repairs on buses that have been in accidents

vehicle electronic repairs

installation and service of EBERSPACHER heating

upholstery Service Boskovice

measuring emission levels in compression-emission engines

verification and installation of Veder-Root, Kiencle, Actia, Siemens analogue and digital tachographs Service: Prague, Vykov, Boskovice

installation, in warranty and post warranty service of THERMO KING air conditioning and cooling systems - Service Prague

Target Market:

According to our calculation our target market size is 70% of total population which is 155,215,573. They use public bus as their main medium of transport for day to day journey and rest of the people are not using the public transport. We are targeting those people who are frequent user of public transport.

Figure: Transport user ratioDemand Condition

Demand for public transportation is rising day by day in Nigeria. Rising oil and gas price are forcing people to use public transport. Its become very expensive to maintain Private Transport. So our well facilitated city buses will be a great option for them.

Main competitor: Following companies are currently occupying majority of market share in this industry. So they are our main competitors. American Ikarus

AM General

The Flexible Company

Gillig Corporation

General Motors Corporation

Highway Products, Inc.

Mack Trucks

Motor Coach Industries

New Flyer Industries

NovaBus Corporation

Orion Bus Industries/Bus Industries of America

Tokyu Car Corporation

Competitor Analysis:

American ikarus:

This company is located in Anniston, Alabama. American Ikarus build in 1996. Its model is 416 and fleet numbers are 9501-9517. The companys divisions are assigned in Babcock/William. Many buses of this company have already retired.

Am General:

This company is located in South Bend, Indiana. Its started in 1975-1976. The model number of this company is 9640AMetropolitan and fleet numbers are 4001-4070. Remainder of buses retired prematurely due to serious structural issues, and was replaced temporarily in 1987 with surplus Flx buses from Rochester and GMC RTS-01 series buses from Dallas.

The Flexible Company:

The company is located in Loudonville, Ohio. Its started in 1970. The model number of this company is 111CD-D5 and the fleet numbers are 301-305. The company purchased second-hand from RGRTA (Rochester) to fill gaps in buses, due to the emergency retirement of the fleet of AMG buses. Bus original fleet numbers in Rochester were 530, 569, 575, 560 and 572.

Gillig Corporation:

This company is located in Hayward, California. The company started its frontier and Babcock/William division in 2001. Its model number is Advantage T40 and fleet numbers of Wheel chair is 2101-2141. First buses to be equipped with amber colored LED destination signs2118 were withdrawn after catching fire in front of Seneca High School. The same fire also destroyed bus 9538. The company again launched the Advantage T40 in 2002 whichs fleet numbers are 2201-2242. 2242 buses are out of service due to extensive front end damage. Gillig Corporation launched Advantage T29 of Frontier and Babcock/William in 2004 whichs fleet numbers is 2401-2422. At present, these are the only 29-foot (8.8m) buses in the fleet. First buses fitted with bicycle racks on the front. The model Advantage T40 of Babcock/William again launched in 2005 whichs fleet numbers is 2501-2515. 2506 buses involved in accident with a tractor-trailer that severely damaged its frame. Bus is not salvageable. The next year in 2006 the company introduced its Advantage T40 Hybrid of Babcock/William whichs fleet numbers are 2601-2630. First batch of "Hybrid" buses were using combination diesel/electric technology. Energy is returned to batteries upon braking. The model Advantage T40 of Frontier launched in the very next year whichs fleet numbers is 2701-2713. It was Diesel-Electric. The Cold Spring division of the company was assigned in 2010. The model of it was Low Floor T40 Hybrid and the fleet number was 1001-1011. The specialty of its are given below-

Diesel-Electric

Entered service April 1st 2010

All 1000-series buses mark a return to full fiberglass passenger seating

Gillig Corporation launched Low Floor T40 Diesel of Frontier and Babcock/William in the same year whichs fleet number was 1012-1065. First buses delivered to NFTA under the new EPA 2010 Emissions standards. In 2011 the company again launched Frontier and Cold Spring whichs model and fleet numbers are consecutively 40 Low Floor Trolley Replica, Low Floor T40 Hybrid and 1066-1067, 1101-1030. In Frontier the company initially offered in 29 or 35feet, the NFTA was the first agency to receive the 40foot version. While primarily used for the 55T Niagara Falls tourist line, these buses will see occasional service on certain regular NFTA routes, such as the 3-Grant and 20-Elmwood. In Cold Spring it was just diesel-electric.

Highway Product Inc.:

This company is located in Kent, Ohio. The company started in 1975 in the division of withdrawn. The model of it was TC-31B"Twin Coach and the fleet numbers was 3001-3012. The specialties of the buses are as follows-

a) Former Lockport Bus Lines buses.

b) First buses equipped with wheelchair lifts.

General Motors Corporation:

The company is located in Pontiac, Michigan. The fleet number of the division withdrawn was 7001-7030 which started in 1954 and the model was TDH-5106. These were all Former Niagara Frontier Transit Buses. In 1957 these buses were again launched whichs fleet numbers was 7100-7114. In 1958 the company launched TDH-5106 fleet numbers of 300-319 whose were all Former Buffalo Transit, Inc. Buses. In the next year the company launched a new model of SDM-4501 fleet number of 166-168 which were former Grand Island Transit 66 & 68, acquired in 1975. In 1960-1961 the model TDH 5301 fleet numbers of 7401-7459 came to the market which was all transit system buses. Another model TDH 5304 fleet numbers of 7501-7549 came to the market in 1963. In the following two years the same model buses launched whichs fleet numbers was 7600-7684 and 7685-7719. The company launched model SDM-5302 fleet numbers of 104 in the year 1967 which also were former Grand Island Transit 104, acquired in 1975. In 1968 a new model of T6H 5306 fleet numbers of 7720-7794 came to the market. The model S8M-5303A fleet numbers 114 launched in 1970 which were also former Grand Island Transit 114, acquired in 1975. The version 7754 retained as "heritage" bus. The model and fleet numbers of the buses launched in 1978-1979 were T8H-603 "RTS-03" 5001-5065.

Mack Trucks:

The company located in Allentown, Pennsylvania. Its started in 1957 with the model C49-DT fleet number 6200-6244 in the division withdrawn of former Niagara Frontier Transit System buses. In the next year the same model came with a fleet number of 6300-6359 for former Niagara Frontier Transit System buses and first order built with Mack New Look front.

Motor Coach Industries:

The company located in Roswell, New Mexico. The only model TC40-102A "Classic" of the company launched in 1992 with a fleet numbers of 401-417 in the withdrawn division.

New Flyer Industries:

The company located in Winnipeg, Manitoba. This company also launched its only model D40HF fleet numbers 9301-9375 in the withdrawn division whose 9318 painted in International Railway Company colors: dark green with cream and rust accents and gold crest logo and the name INTERNATIONAL on the sides. Later on its repainted in the blue/silver livery.

NovaBus Corporation:

The company located in Quebec. The only model TC40-102A "Classic of this company launched in 1996 whichs fleet numbers is 9601-9641 and was in the division of Cold Spring. Some buses have already retired. A few buses are still painted in the "earth tone" livery.

Orion Bus Industries/Bus Industries of:

The company is located in Oriskany, New York. It launched the model 01.509 "Orion I" fleet numbers 601-607 in withdrawn division in the year 1985. This company purchased the last new non-wheelchair lift-equipped buses in that year. The next year the company launched the model 01.508 "Orion I" fleet numbers of 701-773 in the same division. Buses 703, 756, 768 and 772 were sold to RGRTA (Rochester), buses 720, 729, 741 and 757 were sold to BC Transit (Binghamton), and one to Poughkeepsie Transit. First buses equipped with interior "Stop Requested" sign when bell is pulled. After two years same model with fleet numbers of 806-816 launched with a specialty of first electronic "flip-dot" destination signs. The model 01.502 "Orion I" fleet numbers of 851-852 launched in the same year. In 1990 the company again launched the model 01.508 "Orion I" fleet numbers of 921-925. It was the last OBI I buses and of those buses 925 was fitted with "hopper" type windows rather than sliding windows. First buses, along with 861-867 with fabric covered inserts in the passenger seats.

Tokyu Car Corporation:

The company located in Yokohama, Japan. In 1983 the company launched its product in the market fleet numbers of 101-127 in the South Park division. The cars were all Metrorail cars and the entire fleet is being rehabilitated at Gray Manufacturing Industries in Hornell, New York a few cars at a time.SWOT Analysis

Performance

STRENGTH

Weakness

(Major

(Minor) (Neutral) (Major) (Minor)

Marketing

1. Company reputation

.

.. ..

2. Customer acquisition

.

...

. ..

3. Customer satisfaction

.

...4. Customer retention

.

...5. Product quality

.

.. ..

6. Service quality .

.. ..

7. Promotion effectiveness

.

.. ..

8. Sales force effectiveness

.

.. ..

9. Innovation effectiveness

.

.. ..

10. Geographical coverage

.

.. ..

11. Technological advancement .

.. ..

12. Market positioning

.

.. ..

13. Psychological attachments .

.

..

14. Voluntary Services

.

.. ..

Finance

15. Capital

.

.

...16. Cash flow

.

.

. ..

17. Financial stability

.

.

...18. Cost effectiveness

.

.

....

19. Pricing strategy

.

.. .

20. Market share

.

. ..

21. Economies of scale

.

..

. ..

Human Resource

22. Dedicated workforce

.

.. .

23. Technical workforce

.

..

...24. Adequate stuff

.

.. .

25. Efficient stuff

.

..

...Organization

26. Visionary capable leadership.

.. .

27. Entrepreneurial orientation.

.. ..

28. Flexible response

.

.. ..

29. Business diversification

.

.

.. ..

30. Competition

..

. ..

Reasons for engaging in internationalization

Market-Seeking motives:Gain access to new markets or opportunities:

Our company wants to internationalize its product because it wants to expand its market share by gaining access to new markets and also wanted to achieve economy of scale by grabbing the opportunities that the new market provides.

Entry Mode: ExportingOur company Viaggio (Its an Italian word means Journey) is Bangladeshi joint venture with IRISBUS IVECO of Italy. We mainly import BUS parts from IVECO and assemble them in Bangladesh & export Buses from other country. Now we are planning to enter in Nigeria through a distribution channel. They have the infrastructure and they have huge need for Buses. So its a very potential market for our product.

Timing of Entry

No other Bus company currently offering luxurious air conditioned buses so if we enter with our luxuries city bus then we will enjoy the first mover advantage in this market.

Recommendation:

While doing the project, we found several problems. There are some restrictions in case of import/export from Bangladesh to Nigeria. So, we recommend a few things to keep in mind.

In case of import from Italy to Bangladesh we faced huge problem. There is a huge import tax on spare parts of buses imported from any foreign country, but the tax is very low if we buy from any domestic or any foreign company manufacturing the spare parts in Bangladesh.

The bureaucracy of Bangladesh was a challenge for us. All the papers that are necessary for exporting any product are very much difficult to get in Bangladesh. So, we suggest that in case of exporting any product there must be good preparation and enough time in hand to handle this problem.

The banking process must be good enough to have the faith of the consumer.

Lastly we recommend that in case of export any product from Bangladesh everyone related to this business must enthusiastic enough to handle the political and infrastructural problems.

ConclusionNigeria has a most developed roads and highway infrastructure among the African country. Their main communication medium is roads and highway. According to our market research and market segmentation its clear that Nigeria needs a lot of new city buses to fulfil their communication need. With the current infrastructure, political and economic condition in Bangladesh, we hope that with all necessary steps we will successfully be able to export bus to Nigeria.Reference:http://english.aljazeera.net/news/africa/2011/04/2011414103045300941.htmlhttp://www.irisbus.com/en-us/irisbus/pages/vision.aspxhttp://www.fiatindustrial.com/en-US/group/awards/Pages/premi.aspxhttp://www.tezas.cz/irisbus-iveco-buses

Group Project

MKT-417 Sec. 1

Instructor:

Samy Ahmed

Submitted BY

NameID

Md. Emran Hoque Razi073025030

M. Habibullah Sarker073038030

M. AsifUl-Islam073276030

Sanjid Ahmed073696030

Nasiful Huda Khan081105030

Tasmia Jarin082197030

Submission Date

2nd November 2011

2

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