ECHIUM
GROUP1
Hou-Yu Lin, Biyu Huang, Hanzhen Xu, HyoWon Kim
MARKET EVALUATION AND ENTRY STRATEGY FOR OCEANPAC
TO ENTER MALAYSIA
Oceanpac, based in Singapore, is a leading provider to Oil Country Tubular Goods (OCTG), Marine and
Offshore products supply and servicing. It wants to continue its presence in Asia and be the gateway to Asian Marine & Offshore, hence the desire to enter Malaysia.
Our project aims to provide Oceanpac a feasible and profitable mode of entry into the Malaysian
market. The business culture is different of that in Singapore, which explains the necessity of a thorough assessment of the country, Malaysia, itself before going ahead with the business idea.
An examination of the micro and macro environment is required. We will then be able to assess the
favourable and unfavourable market conditions through tools like PESTLE and SWOT analyses. We have decided on establishing a partnership with a Malaysian company, thus an analysis of the tax complications and legality in sales & distribution related to partnership is also given. Thepartnership allow us to have more control in the target country. With Oceanpac’s resources and the knowledge from the local firm, Oceanpac can venture into the Malaysian market with confidence.
An analysis of the culture in Malaysia showed its importance in positively impacting the business
performance. With Malaysia being a high context society, relationship building is more relevant than the actual contract signing. Trust has to be established before there is any process.
This project will provide valuable information from comprehensive researches on Malaysia. It also
highlights unique cultures, government laws and policies of Malaysia where Oceanpac has to take note
in order for the venture to be smooth-riding.
GROUP2
Tianshi Han, Shu Hui, Vanessa Lam,
Stephanie Halim Chandra,Tommy Jia Shen Gan
ANCHORING OCEANPAC IN PHILIPPINES
HCGL Consultancy Group (HCGL) has written this report to provide Oceanpac Engineering
Pte Ltd (Oceanpapc) with recommendations for their market expansion into the Philippines.
HGCL analysed the current oil and gas outlook, the Philippine business environment and
legal factors pertaining to taxation and human resources to develop a market entry strategy
for Oceanpac. A comparison between the different entry modes into the Philippines and a
risk assessment of the expansion project was also done. The group found that based on
their holistic analysis of the oil and gas industry and the Philippine business environment, a
deliberate market entry strategy would be most suitable. HCGL recommends that Oceanpac
expands into the Philippines by establishing a representative office. The analyses suggest
that this would be the ideal entry strategy to anchor Oceanpac in the Philippines.
GROUP3
Teo Wen Bin Genson, Luyun Chen, Poi Xin Tan,
Silvia Febriani Candra
OCEANPAC'S PART AND PARCEL INTO INDONESIA
InspiVision aims to provide professional consultations to all firms
venturing into Asia. The objective of this project is to advice and
guide Oceanpac in its venture into Indonesia. Indonesia offers a wide
prospect for further advancement and expansion of Oceanpac’s
OCTG supply and servicing operations due to the abundance of
natural resources such as oil fields. Currently, deepwater projects
such as Natuna and Masela petroleum block are on hold as they are
waiting for investors to kick-start the projects. We believe that these
deepwater projects would be a good opportunity to gain market
share and create brand awareness in Indonesia. Therefore,
InspiVision employed the use of analysis tools such as SWOT and
PESTEL to explore the micro and macro environment of the OCTG
industry in Indonesia. The results showed that the key issues likely to
implicate Oceanpac’s overseas operation are as follows: (1) overseas
market outlook (2) tax complication analysis, (3) labour law and
compliance, (4) cross-border tax complications and (5) legality in
sales and distribution arrangements. Thus, we recommend Oceanpac
to set up a Limited Liability Company, also known as PMA Company
in Indonesia, using this as the most strategic mode of entry. This
mode of entry is supported using Dunning’s OLI framework as well as
the comparison with other potential mode of entries such as
exporting and joint venture.
GROUP4
Sunnidhi Taneja Lal, Qihua Chen, Sharon Sue Rou Ng,
Trecia Xin Yee Yap, Vun Ken Siew
OCEANPAC MARKET ENTRY INTO THAILAND
The purpose of this study is to analyze all factors that will impact Oceanpac’s market entry
into Thailand, and determine the most prudent market-entry mode for Oceanpac, based on
our findings. The country of interest is Thailand, and there are many analyses that must be
done regarding our research. We will conduct a PESTLE analysis of Thailand, and analyze
other relevant legal frameworks, such as taxation, foreign business practices, and marine
transport regulations. We will delve into specific economic aspects of Thailand, such as
trade and foreign investments, to understand Thailand’s level of economic interdependency
on the region and the rest of the world. Furthermore, we will examine the local and regional
OCTG market, and ascertain related trends and market opportunities, and the growth
potential of Oceanpac in this market.
Apart from analyzing market variables and patterns, we will determine a sound employment
strategy, based on specified labor laws of Thailand and the organizational needs of
Oceanpac. We will look into expatriate satisfaction, which will enable us to understand the
likelihood of foreign directors remaining in Thailand over a long-term basis. We may need to
alter our employment strategy to fit administered labor laws in Thailand, as well as provide
economic incentives to relocate managing directors and company executives into Thailand.
Lastly, we will look into the cultural aspects of Thailand, such as the Thai work culture which
will influence Oceanpac’s operations in Thailand. Oceanpac will have to acclimatize to the
local culture, and create a managerial strategy that will motivate domestic employees to
recognize and accomplish organizational goals. Oceanpac will have to adjust and customize
their employee packages to meet the requirements of Thai employees.
GROUP5
Nurshariza Binte Bahrawi, Hay Mar Thu Thu Kyaw,
Khaing Wint Yathaw, Saw Su Shin
UNVEILING OCEANPAC IN MALAYSIA
Aligned with Oceanpac’s vision to be ‘the Gateway to Asian Marine & Offshore’, we aspire to
expand our business to Malaysia, while achieving a significant and strategic presence in Asia.
Oceanpac was established in 2007 and has since grown to be a leading provider of Oil Country
Tubular Goods (OCTG), Marine and Offshore products supply and servicing. Oceanpac prides
ourselves with our strong customer centric focus and close relationships built with our clients and
partners.
Malaysia being the second largest producer of oil and gas in Southeast Asia, is selected as the most
suitable host country for our project. In order to understand the Malaysia market better, the team
conducted an intensive PEST and SWOT analysis, while examining Porter’s five forces on Malaysia.
While embarking on this journey, we were closely guided by five research areas namely overseas
market assessment, tax complication analysis, labour law and compliance, cross border tax
complications and impositions assessment and finally the legality in sales and distribution
arrangements. Through literature reviews and secondary data research, we were able to understand
and compare various market entry mode methods and conclude the report by recommending the
best mode of entry, which in our case is, Joint Venture.
By investing in a joint venture, Oceanpac have to be aware of its external business climate which
includes potential local partners/suppliers, customers and even current competitors. In addition,
Oceanpac would also need to consider Malaysia’s current political and economic situation and the
various legislations that exist in the country, since we are entering into an international market.
At the end of this project, we will be able to produce an in depth report analysis based on
Oceanpac’s internal strengths and the above-mentioned factors which will contribute to the success
of our new venture in the OCTG and Marine and Offshore industry in Malaysia.