The Business Plan On AB Mechanical And Electrical Company In Ethiopia Investment Project

As the domestic economic slows down with severe overcapacity and market competition heats up under the "new normal",following the national strategy of "The Belt and the Road",seeking new development opportunitiesthrough the international cooperationwill become one of the important choice of equipment manufacturing enterprises.AB company products cover CNC controller,servo driver,servo motor,isolation transformers,etc.,which accounts for more than half of domestic market low-standard nc system.However,with the advent of the "new normal",the demand for low-standard NC machine tool drops;At the same time foreign well-known brands enter the mid-range market,with low market price dumping of the domestic new brands(including Taiwan),AB company market is severely extruded,with benefits dropped significantly.Therefore,it's urgent for transformation and upgrading,and opportunities for AB company.After international investor in other analysis and screening,the company decided to invest in Ethiopia.This paper is targeted on the project's business plan research.Putting the theory combining with the actual practical,reference and experience all kinds of market entry mode,comparing related location choice,especially the characteristics of Africa and Ethiopia,and the present situation of the machine tools(CNC)industry,this paper hopesthat it can give practical plan and opinions for AB company transnational cooperation and related project implementation.First,the research in this paper summarized the project,then it analyzes the investment environment and industry situation of Ethiopian,finding that Ethiopia's political stability,rapid economic growth,vigorously construction of industrial park investment promotion and capital introduction,a large number of infrastructure and industrial development provide a broad marketfor mechanical and electronic products.Paper also analyzes the reason of company investment and advantage,the motivation is to through the implementation of cooperation projects,Ethiopia AB company will be able to fulfill the following three goals: to avoid domestic rivals,through state-owned enterprises H company in Ethiopia,into the African market;Through capacity of the original fixed assets become ready money to operate,support of high-grade CNC system and independent research and development of the industrial robot;The value chain for AB company profit margins higher link transfer opportunities,a foreign manufacturing service enterprises,to complete the transformation and upgrading of enterprises.AB company's advantage lies in both the Ethiopia market required for the optimal cost-effective products,CNC system and good service and mature nc machine tools transformation technology,it has the disadvantage of the lack of high-end products and technologies,overall AB company with Ethiopia market complementarities is very good.Paper finally also analyzes the financial benefit,risk management,found that the project can realize profits and can be controlled by aversion and pass on possible policy,market and technology risk.Through research and analysis of this article,the production capacity to adjust structure under the new situation,the transformation and upgrading of small and medium-sized private enterprises is inevitable.Matching this project with the strategic deployment of all the way of our country,the small and medium-sized private enterprises to borrow foreign resources and markets abroad,to transfer some or all of the capacity,to strive for the time,create conditions for their own development,so as to realize the transformation and upgrading of the enterprise.financial analysis also shows that the project can be profitable,which is a more viable option.