International strategy on emerging countries for a machinery manufacturer on targeted markets of Africa

Abstract

This document presents an overview of the macro-economic situation of several African countries and their potential need for construction machinery in line with the ongoing infrastructure projects. The area under review encompasses the Maghreb, the western and central african countries belonging to the ECOWAS and CEMAC common markets, and stretches out to several eastern african countries belonging to the COMESA common market. This document targets the company Liebherr and more specifically comprises three machinery types of its product range: crawler cranes, cable excavators and drilling rigs. Considering its current macro-environment, a PESTEL analysis is provided in this document summarizing the political, economic, social, technological, ecological and legal aspects underlying the development of exports to the targeted countries. This approach is supplemented with an analysis following the Porter’s Five Forces. In the light of the above, it is concluded that an expansion to the growing african markets could benefit to the company by bringing additional revenues and supplements its current global presence from Europe to America and Asia. Comforting the positions in Maghreb, a marked potential is noted in Senegal and Ivory Coast, in the western african area, as well as in Cameroon. The positive trend observed in the infrastructure development in Ethiopia must also be taken into consideration. This approach must combine the advantages provided by the existing african network of Liebherr, with a coordinated direct approach, supplemented by active local support.

This document presents an overview of the macro-economic situation of several African countries and their potential need for construction machinery in line with the ongoing infrastructure projects. The area under review encompasses the Maghreb, the western and central african countries belonging to the ECOWAS and CEMAC common markets, and stretches out to several eastern african countries belonging to the COMESA common market. This document targets the company Liebherr and more specifically comprises three machinery types of its product range: crawler cranes, cable excavators and drilling rigs. Considering its current macro-environment, a PESTEL analysis is provided in this document summarizing the political, economic, social, technological, ecological and legal aspects underlying the development of exports to the targeted countries. This approach is supplemented with an analysis following the Porter’s Five Forces. In the light of the above, it is concluded that an expansion to the growing african markets could benefit to the company by bringing additional revenues and supplements its current global presence from Europe to America and Asia. Comforting the positions in Maghreb, a marked potential is noted in Senegal and Ivory Coast, in the western african area, as well as in Cameroon. The positive trend observed in the infrastructure development in Ethiopia must also be taken into consideration. This approach must combine the advantages provided by the existing african network of Liebherr, with a coordinated direct approach, supplemented by active local support.