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Abstract

The case is about a market entry decision for the Funcacion Ecologia y Desarrollo (ECODES) in the market for CO2 certificates. ECODES is a Non-governmental organisation active in the areas of water and waste treatment, as well as consultancy and public education on environment issues, with an annual income of 1.26 million euros coming from private companies as well as public institutions. ECODES operates with a lean staff, its 22 employees service 10 different product categories in addition to managing the operational aspect of the business. The company's principal mission is to promote ecological sustainability and it operates in Spain and Latin America. At the time of the case, the EU-15, in response to a Kyoto Protocol commitment, had just opened trading of certificates in a scheme to reduce its greenhouse gas emissions, from 1990 levels, by 8% before 2012. Through the mechanisms of the legislation, European companies emitting greenhouse gases could either reduce their output, or purchase a substitute volume from projects that reduce these gases through Clean Development Mechanisms (CDM). ECODES was eager to enter the market as fast as possible in order to have a first-mover advantage, and earmarked 9,000 euros coming from various sponsors for the task. They additionally requested a team of students from INCAE Business School, Costa Rica, to provide a comprehensive business plan evaluating the regulatory market and the competitive environments. Dennis Manske went to Zaragoza, Spain, in order to develop this plan and present a market entry strategy for ECODES.
Location:
Size:
50 employees
Other setting(s):
2004

About

Abstract

The case is about a market entry decision for the Funcacion Ecologia y Desarrollo (ECODES) in the market for CO2 certificates. ECODES is a Non-governmental organisation active in the areas of water and waste treatment, as well as consultancy and public education on environment issues, with an annual income of 1.26 million euros coming from private companies as well as public institutions. ECODES operates with a lean staff, its 22 employees service 10 different product categories in addition to managing the operational aspect of the business. The company's principal mission is to promote ecological sustainability and it operates in Spain and Latin America. At the time of the case, the EU-15, in response to a Kyoto Protocol commitment, had just opened trading of certificates in a scheme to reduce its greenhouse gas emissions, from 1990 levels, by 8% before 2012. Through the mechanisms of the legislation, European companies emitting greenhouse gases could either reduce their output, or purchase a substitute volume from projects that reduce these gases through Clean Development Mechanisms (CDM). ECODES was eager to enter the market as fast as possible in order to have a first-mover advantage, and earmarked 9,000 euros coming from various sponsors for the task. They additionally requested a team of students from INCAE Business School, Costa Rica, to provide a comprehensive business plan evaluating the regulatory market and the competitive environments. Dennis Manske went to Zaragoza, Spain, in order to develop this plan and present a market entry strategy for ECODES.

Settings

Location:
Size:
50 employees
Other setting(s):
2004

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