Market Entry Evaluation For The Italian Company Sinergiasistemi S.P.A. To The Chinese Biogas Industry

This study is aimed at providing SinergiaSistemi, an Italian company committed to energy saving solutions, with a potential market entry strategy in the Chinese biogas sector.In2009China recorded the highest power capacity in renewable energy. The country is investing heavily in renewable energies and also started boosting developing sectors such as biogas generation which has unique characteristics.The significance of this research is related to the environmental concern and the booming importance of renewable energies, especially in China. Primary research made of conferences and direct information exchange, and secondary research data built the methodology used to gather information.Firstly, the author provides general information about biogas technology, precious instrument to familiarize with the topic.Then, he focuses on the country-related analysis, describing the Chinese biogas sector in its specific features. Technical features are explained, differences between the many rural household appliances and the under exploited medium large sized plants are provided. Furthermore, the financial system with favourable governmental intervention, policies and Clean Development Mechanism is faced in details. Then, the profitable areas (mainly that of Shandong, Guangdong) are depicted and the applicability limitations are clearly addressed in terms of lack of advanced technologies, non-standardized legislation, geographical differences, and substitute renewables. All the factors influencing the sector are categorized through PESTLE and Porter’s Five Forces Analysis.Finally, the different strategies the company could adopt in specific areas are highlighted and given motivation. Moreover, some practical recommendations for the future are provided.