Environmental Analysis S T E P

Environmental Analysis SOCIAL –Cultural –Environmental –Demographic TECHNOLOGICAL –Level of Technology –Infrastructure

Environmental Analysis ECONOMIC –Stage of Development –Macro-Economic factors –Type of System –Resource availability –Industry factors –Competitive influences

Environmental Analysis POLITICAL –Legal system –Governmental factors –Regulatory influences –Long-range trends

STEP Analysis: Israel Social –Culturally unique –Educated / highly skilled workforce –Relatively small population Relatively lower salaries than comparable

STEP Analysis: Israel Technological –Highest Science / Engr. per capita Focus on technology / training –Relatively small population

STEP Analysis: Israel Economic –High GDP per capita –Government programs Venture Capital Tax incentives Emphasis on “intangible” assets –“Intellectual”

STEP Analysis: Israel Political –Trade agreements –Goals of increasing exports Govt. backed programs

Reasons to Enter Israel ? Skilled Workforce –Educated, Technologically competent, “World Class” Global Trade “Bridge” –Linkage to other markets

“Jumping Off Place” How Illustrating issues? –Identifying reasons for entry –Identifying means of risk mitigation Local partner –On-site support –Personnel hiring –Legal assistance –Governmental negotiations U.S. Firm –Capital –R&D Technology –Training

“Jumping Off Place” Strategy? –Initial entry with local partner –Subsequent expansion to Italy Use as jumping off point for Central and Eastern European markets Cultural similarity of Spain & Italy –Later expansion into Northern France (only AFTER success!) Jumping off point for Northern Europe & other Major EU countries.