Executive Summary This report is about the strategy, planning and opportunity to invest another country which is Sao Paulo, Brazil. The research talk that there are not many types of solar power in this country, especially the solar box cooker. Also, the Brazil economy has been grown fast in recently, and the population of Sao Paulo is over 10 million. There has a sunny light through a year which is similar the home country of company, Australia For this reason, the Rainbow Power Company, which is manufacture, and supply renewable energy equipment, will invest to produce the solar box cooker.
Also, this product will base on 4 C’s of new product to develop in Brazil such as company, consumers, competitive and collaborators. * Introduction Nowadays, around the world have a lot of manufactures and distributor of renewable energy equipment that based on helping the environment and less then population. For that reason, this report will talk about Rainbow Power Company Ltd whom will produce the solar energy, particularly solar box cooker.
Moreover, it is going to tell about the strategy, planning and opportunity to invest another country which is Sao Paulo, Brazil. Furthermore, there is the only one of this product in this market if Rainbow Power Company wants to invest. * Company Structure, Capabilities and Resources Rainbow Power Company Ltd is opened in 1987. They are doing design, manufacture, and supply renewable energy equipment with solar, wind and hydro energy sources. Moreover, the company has been a major character of increasing use of renewable energy both in overseas countries and Australia.
The company has enthusiastic and lots experienced workforce, with good equipped and complete range of products and services have provided with a strong foundation so that the business intend to continue to grow. Additionally, Rainbow Power Company Ltd is a unique company structure. They are much similar a co-operative with respect to employee participation. Also, the number of staffs could become shareholders and the aim to remain an exciting, satisfying and innovative place to work for and with. * Products/ Markets/ Distribution & Supply.
The company is one of the large distributors of batteries and solar panels in Australia. In the current market, there are many types of sales in this business such as the sales can be handled by a variety of re-sellers around the country and through the shop. Also, consumers can be able to online shop and mail order services. Besides that, the suppliers are with access to the latest technologies so that are an excellent support to Rainbow Power Company whom is able to be a competitor in all its products and services.
There is an advantage of this business which is not only supplying renewable energy products, but also offers information and education on renewable energy systems such as consultation, training courses, practical information on the website, and newsletters. (Environment directory, 2013) Additionally, the Company’s headquarters, which is in Northern of New South Wales on the East coast of Australia, are powered by a 10 kW feed solar array with battery back-up. As can be seen the table below, which is showed the comparison over 3 years (2010 – 2013) in Rainbow Power Company. Source: Rainbow Power Company, 2013
Moreover, in the export and overseas, Rainbow Power Company is a business partner of Sundaya which manufactures of high quality lighting in many countries. And Rainbow Power Company Ltd exports around 30% of its products and services to a lot of countries in the Pacific region. Their power of export in these locations is for medical clinics, home lighting, community centers, schools, communications projects for village water pumping. Moreover, the staffs have undertaken training courses and consultancy projects in several countries such as Papua New Guinea, Vanuatu, Kiribati and Brazil. Rainbow Power Company, 2013) Some of the solar cookers, especially parabolic cookers, can be a fire hazard because some of them focus the sun’s rays into a concentrated point so that can quickly set things ablaze. For that reason, more solar cookers improvements are on the market now, which are simple to build and use without losing any efficiency. “The Indian Company “Rohitas” has been working for the past three decades in improving the solar cooker range and has developed a number of innovative designs. These solar cookers are developed to replace conventional cooking devices and overcome the hazardous effects on health of onventional cooking methods. ” Rainbow Power Company (2013) The ideal of this product, solar cookers are good for camping, bush cabin or weekender. Furthermore, the solar cookers work well in a wide range of climatic conditions and success in use at high snow covered mountains, or under high wind and sub-zero temperature conditions. Therefore, this reflects the quality and performance of solar cookers of Rainbow Power Company. Moreover, solar cookers are also a great option for those wishing to reduce the environmental impact of their homes on the planet.
Although solar cookers may not be able to completely replace a conventional oven yet, but they are still an effective and emission free way of cooking food. They are also a great for camping trips and other outdoor activities, or hiking in the mountains. * Competitive Environment and Industry Situation Nowadays, the standards industry contains of the electricity, gas and water markets. Firstly, the electricity market contains of sale of electricity to the industrial, commercial, household and other end-users, including agricultural and transport.
Therefore, the market value has been calculated the average annual electricity prices. Secondly, the gas market is calculated as the total value of natural gas used by industrial, commercial, and residential. Also, the water utilities industry consists of all water that is collected, treated and distributed to end users. Moreover, as can be seen the table 1 in appendix, the Brazilian utilities industry has experienced very strong growth during 2011, which is 10. 7% in 2010 to over 38% in 2011. Also, there is a forecast which the utilities to continue growing strongly over the period to 2016, (table 2 in the appendix)
Therefore, people should use solar energy which is an electromagnetic energy transmitted from the sun, so that will help to reduce their bills. Because the amount of reaches the earth is equal to one billionth of total solar energy generated, or the equal value of about 420 trillion kilowatt-hours. In recent years, the economy of Brazil has grown impressively and inequality has fallen. Brazil is the world’s sixth largest economy now which is overtaking the United Kingdom in 2011. Also, they will organization two global sporting events that are the Olympics games and the World Cup.
Moreover, Brazil is a small player with 2OMW installed capacities at the moment compared to the leading market Germany with over 18,000MW. However, with the economic growth and a lot of investments are the main characteristics of Brazil, where the first fair dedicated to solar energy will be taking place in this July concurrently with Green energy Expo Brazil. (Eolica Brazil, 2012) Following that, solar cooker is the simplest, safest, most convenient way to cook food without consuming fuels or heating up the kitchen. The way its work that the sun’s rays are in an insulated black box with a transparent lid which lets in the sun’s rays.
And inside the box, this sunshine turns to heat which is trapped in the box. So the effect is similar to the oven in kitchen and temperatures can be reached around 300 degrees Fahrenheit. That’s why a lot of people choose to solar cook for these reasons above. (Applied Solar Technology, 2013) * Synthesis of Strengths Relative to Potential Opportunity There is a SWOT for the Rainbow Power Company to enter Brazil market. Strength: Firstly, the product is simple to build and quickly set things ablaze. Also, Solar cooker does not create and pollution with the environment.
Also, the ideal of solar cooker are good for camping, bush cabin or weekender. Weakness Solar energy and electricity are not available at night and it can be unavailable with weather conditions. Moreover, the main weakness of this business is that Rainbow Power Company is a start-up business and that they have to face established retailers. Opportunity: First of all, Brazil is the world’s sixth largest economy, and the economy will be increasing in the next few years. They will be host for two global sport games, which are the Olympic game and the World Cup.
Secondly, there is a new breakthrough of this business to enter a new market with the only product in the market. Threat: This company is a small business, so there are lacks of funding to invest in the huge market. The government has not any encouragements target at solar energy yet. Moreover, there is a difficult for business about language and culture. * Strategic Fit Evaluation and Opportunity Identified and Justified Solar energy seemly a natural choice for Brazil amongst renewable energy sources, but solar energy generation is still at an early stage compared to other alternative energy sources such as wind or water energy.
Also, the cost of equipment is expensive. The solar cooker is a new product in this market, and there are a 4 Cs of this product such as company, customer, competition and collaborators. Firstly, the company is not only supplying renewable energy products, but also offers information and education on renewable energy systems such as consultation, training courses, practical information on the website, and newsletters. Also, Rainbow Power Company is a manufacturer and distributor of renewable energy equipment.
The sales of this business are around the country, Australia and through the shop-front and consumers can be able to online shop and mail order services. Following that, the business can be applying in Sao Paulo market. There do not have competition for this particularly of solar box cooker in Brazil market. That means Rainbow Power Company only a supplier for this type of solar with people in Sao Paulo. As the population this city is very high with over 18 million people (Worldalats, 2012). * Conclusion There is a good opportunity for Rainbow Power Company Ltd to entry the Brazil market.
First of all, a first business sell solar bow cooker in this market. Secondly, there are a huge amount of people in Brazil, especially in Sao Paulo. Also, the business has a good background in home country, and a partner of Sundaya which manufactures a range of high quality in many countries. However, the company should consider several of things. Firstly, there is a small business so that it is difficult to have amount of money to invest. Secondly, there are a different language and culture. In general, the company can be able to produce solar box cooker in a new market which it will bring a profit in a few years later.
Appendix: Table 1: Brazil utilities industry value from 2007 to 2011 Source: Market Line, 2012 Table 2: Brazil utilities industry value forecast from 2011 to 2016 Source: Market Line, 2012 References: Applied Solar Technology (2013) Benefits of solar oven cooking. Available from http://www. applied-solar. info [12 March 2013] Eolica Brazil (2012) Enersolar + Brazil: solar energy for a fast growing country. Available from http://www. smallwindbrasil. com/en_eob/comunicato. asp? ID=909&fiera=ESB [12 March 2013] Freitas, D. , Barrette, P. A. & Carolina, A. 2009) The wealth of opportunities, International Financial Law Review, Energy Supplement, pp. 11-16 Gomes, T. (2011) 2012! The year Brazil will go solar! Available from http://www. bricexpansion. com/brazil-solar/ [10 March 2013] Market Line (2012) Utilities Industry Profile: Brazil; Market Line, pp. 1-37 Nascimento, A. C. (2012) A comparative analysis of the Brazilian and the US electric sector: from changes to challenges. Available from http://www. gwu. edu/~ibi/minerva/Spring2012/Arlene. pdf [10 March 2013] Rainbow Power Company (2013) Companies. Available from http://www. environmentdirectory. com. au/companies/rpc. tm [10 March 2013] Rainbow Power Company (2013) Grid feed power output. Available from http://www. rpc. com. au/about-us/grid-feed-power-output. html [10 March 2013] Sen, Z. , (2008) Linear Solar Energy Models, Solar Energy Fundamentals and Modeling Techniques, pp 101-149 Solar Green (2011) Why choose us. Available from http://www. solargreen. net. au/why-us. php [9 March 2013] The economist (2012) Ideas economy: Brazil 2012. Available from http://www. economist. com/events-conferences/americas/brazil-2012 [11 March 2013] Worldalats (2012) Largest city of the world. Available from http://www. worldatlas. com/citypops. htm [12 March 2013]