Phase Seperation PS2 Case Improved Version - 1059 Words

Phase Separation Solutions (PS2) Case Analysis Group Team Leader : Mrs Ei Phyusin Htay Situation Analysis Phase Separation Solutions Inc (PS2), founded in 2004 in Canada, is a young environmental management consulting company who licensed a patent of unique TPS technology for PCB contaminated soil treatment and oil sludge recovery, having a vision of fully integrated International environmental service company. The firms competencies, weaknesses, external opportunities and external threats are identified in below summary table. Strength High entry barrier due to strict licensing, high start up cost, requirement of special scientific expertise to operate TPS technology is highly mobile, onsite remedial technology Exclusive right to†¦show more content†¦iversification strategy to enter into China PCB POP market by JV with (NIES), to build a TPS demonstration unit to treat POP contaminated site Relatively low risk exposure of demo unit and the JV (free advertisement of TPS technology) High entry barrier to other technologies as PCB/POP sites are fragmented Established legislation as China government and Multilaterals like World Bank are committed to PCB/POP related environmental concerns in China Financial resource Constraint (US$ 3millon equity investment required) Human resource Constraint Potential risk on Intellectual Property leakage (uncertain IP Laws for protection of IP rights) Potential risk of operation teams synergy after the JV formation, for employees coming from different cultural background and different nationals Geographical diversification strategy to enter into China oil sludge treatment market by JV with Nahai, to establish fixed facility of 10,000 tons/year capacity expandable to 100,000 tons/year Huge entry barrier imposed by JV against new entrants if Nahai let JV use the sole permit of waste management in Zhoushan Immediate access to excellence infrastructure and land asset base of Nahai Nahais proposed site in Zhoushan is located in the hub of major strategic oil terminals in China, immediate market opportunity to 180,000 tons/year of oily sludge waste Managements goal congruence synergy and solid trust base is sustainable Nahais wide range of permits are attractive if put to be used