Roadmap for upscaling operational capacity

Abstract

It has been evident to the market that there is a desperate need for environmental-friendly industrial heat pumps that could deliver heat above 150ºC, as this is the highest temperature today's heat pumps can deliver. This is why Olvondo Technology decided to develop a high-tech heat pump that reduces emissions by using waste heat with electricity to create a high-temperature process steam up to 200ºC. Olvondo is now looking at the opportunity to take the unique high-tech industrial heat pump one step out of Norway and Scandinavia and expand to the European market. This thesis will therefore explore how Olvondo can scale up its operational capacity to succeed in an international market. This research is divided into two parts; a PESTEL analysis that looks at drivers and barriers by entering the European market, and by looking at Olvondo's internal resources and how to steer the company towards growth. To succeed, a strategic business plan is required on how the company will evaluate the various activities in their value chain up to growth and what is needed from external resources. The internationalization to a new country or market is influenced by several factors in the country/region's macro-environment. These factors can affect sales both positively and negatively, and it is important to be aware of these before entering the market. The study of the EU's macro-environment shows that several factors are helping Olvondo succeed in its sales in Europe. There are good trade agreements with Norway and HighLift is something that the industry needs for several reasons. Due to the EU's mandatory reduction of CO2 emissions from industry, HighLift is an ideal product for industry firms to invest in to achieve this goal. In a successful internationalization process, companies are required to have knowledge of the foreign market and insight into a particular country or region's market. This knowledge can be acquired through building relationships with local businesses in the target market. Forming a strategic alliance is a way of working with local businesses to gain regional market expertise and sell a product to a new market simply and effectively. For a faster and more efficient way of entering the European market, the research shows that Olvondo should form alliances with different distributors in Europe. Various tasks in Olvondo's value chain will then be outsourced to alliance partners depending on what resources they have to complete. This will contribute to a more efficient sales process where each party will each benefit from the cooperation in its own way. This thesis will also investigate how Olvondo should organize themselves to prepare for this cooperation through cross-border alliances.