Entrepreneurial project Individual Project
Дипломная работа - Маркетинг
Другие дипломы по предмету Маркетинг
here the major working principles are just being established (which is explained by such a market absence in the former USSR, and its formation start after the USSR disintegration). The most developed part of this market is at present moment office and trading space lease market.
As far as industrial real estate lease is concerned, it may be identified as a completely new product (service) to the local market. The grounds of this phenomenon may be described as follows:
- till the USSR disintegration there existed mostly huge industrial governmental enterprises in the country;
- right after the disintegration until recently the establishing local companies were mainly occupied in services industry and trade industry, since the profit margins were high in those sectors of the country economy;
- nowadays the economic situation has shifted, due to change in peoples consciousness, to a larger number of small industrial enterprises establishment and their successful work at local and even international markets. But small and medium-sized enterprises lack appropriate production facilities ready for lease, and very often the production is organized in premises not intended for those purposes.
All the enumerated factors prove the mature necessity for local industrial parks establishment. Such institutions are common to European countries, e.g. in Germany there exist 53 industrial parks in the chemical industry only, but in Russia these are only emerging and pure innovative.
The challenge of the project consists of several aspects:
- The industrial site neglected тАЬsorry stateтАЭ.
Absence of regional experience in managing industrial property, since till recently there was no necessity to professionally develop and manage the industrial property and, moreover, there were no property complexes, assigned for more than one client, to manage.
Industrial parks are new phenomena to Russian market and we are going to make the best of the opportunity. A company capable of establishing a working pattern of an industrial park in Russia has all the probability to become leader to the market, gaining a substantial measure of control in the market place; attaining pioneer status; blocking competitors and achieving above average sales/profit growth.
The investment needed for site redevelopment (utilities reconstruction and new construction of 600 thousand sq.m industrial and 150 thousand sq.m office premises amounts to $390 mln., including $15 mln. of front-end investment. The project payback period constitutes 7 years.
We expect, that by the 10th year of project realization over 250 companies with 10000 total number of workers will work within industrial park territory.
- The Market Analysis
According to Jones Lang LaSalle Survey тАЬMoscow City ProfileтАЭ, dated September 2006, тАЬthe commercial real estate market in Russia has become more transparent for global investors. The market has entered a new tier in the Jones Lang LaSalle Global Transparency Index, placing it in the same league as Israel, South Korea and Thailand. Market entry of large scale Western European banks and lending institutions suggests that this positive trend will continue over the medium termтАЭ.
Generally, investment in real estate assets market in Russias regions dominates the regional investment market. The growing demand for rental spaces is a major force driving rental spaces growth. The Moscow and St.Petersburg markets are close to saturation, and rental premises boom has started in the regions. Kazan belongs to 13 Russias cities with a population over a million people. So the trends of Moscows and St.Petersburgs office markets find quick response at the Kazan market as well.
Nowadays high rental level, constantly increasing number of companies rivalling for rental spaces make Kazan real estate market an attractive industry to act in.
A brief analysis of the Russian real estate market under the Porters diamond model:
Firm strategy, Structure and Rivalry. Being a developing market, the Russian real estate market possesses one not a positive characteristic, consisting in absence of strategy of the first entrants to the real estate market and market analysis. Nowadays, however, the companies turn to development according to the all-over-the-world established rules. Nevertheless, local companies are hardly capable of competing with international market players.
Demand conditions. The customers on the local real estate market are becoming more and more scrupulous and demanding. But globally, demand in Russian real estate market continues to exceed supply, leaving opportunity to compete.
Factor conditions. The Russian real estate market is characterized by lack of professional specialists (тАЬskilled labourтАЭ); lack of infrastructure, caused by mainly adaptation of existing old buildings, instead of building new ones according to the international standards; and a growing amount of capital invested in real estate development.
Related and supporting industries. This factor is also uncultivated within Russian real estate market framework. E.g. there exist only 3-4 facility management companies in Kazan city, which is obviously scanty for a city with a population over 1000000 people. Real estate consultants and real estate agencies are till present moment also rare in the market. In two words, the Russian real estate market lack of development seems to prevent the country market players from entering international market for at least 10 years more.
- Market Segmentation
The limitation of тАЬHimgradтАЭ Industrial Park target customers to small and medium-sized companies occupied in chemical and petrochemical industries is made in order to single the project out of other industrial real estate complexes. The petrochemical utilities infrastructure present on the site territory allows increasing the efficiency of the mentioned companies business. The chart defining the target companies more precisely is presented at Graph 1.
Graph 1
The hatched segments of Graph 1 represent the тАЬHimgradтАЭ Industrial Park target customers. The reason for excluding big local companies is in their possessing own production facilities on the Republic of Tatarstan territory and, accordingly, enough space for further expansion. As for small foreign companies, they are not interested in global expansion or, to be more exact, have not sufficient financial resources to perform such an expansion. Big foreign companies inclusion in our target customers may seem to be in contradiction with our strategic goals. Moreover, the site space of 131 hectares is not suitable for huge companies location. But here we primarily have in mind the location of small and medium-sized production facilities of such companies, which is usually the starting point of global expansion of an industrial company. Nevertheless, to make the location of such production facilities possible, we should address the mentioned companies headquarters.
To sum up, the project has two categories of target customers:
- local small and medium-sized companies, processing certain types of polymers, produced on the Republic of Tatarstan territory, including the newly-established companies;
- foreign medium-sized and big companies, processing certain types of polymers, produced on the Republic of Tatarstan territory.
- Competitors and Competitive Advantages
The target customers have two-sided choice, deciding on their possible location.
First, they may locate within industrial premises of Kazan city. According to the market research, by the end of 2007 Kazan real estate market comprises office, trade and industrial stocks in the proportions, presented at Graph 2:
Graph 2
Kazan industrial stock comprises over 57% of all real estate premises available for lease, but only third part out of these 1200 thousand sq.m is professionally developed (due to the above described reasons). But the site state prevents the immediate lease of all premises available. Hence, there exist opportunity for growth.
But the target customers may also choose some other industrial park out of those developing in Russia (see Fig 1).
Fig 1
Main competitors group in Moscow and St.Petersburg regions. Tatarstan is beneficially located in Russia, on the boundary of European and Asian parts of the country, being the logistics juncture of those. So, the location of our industrial park in Kazan forms one of its competitive advantages, especially taking into account the chosen industrial park profile connected with the republican economy peculiarities.
The location of тАЬHimgradтАЭ Industrial Park in Tatarstan one of the leading Russian regions in chemicals producing and processing, automatically makes it close to Russian largest producers of polymers: Kazanorgsintez plant; Nizhnekamskneftekhim plant; Kazan Synthetic Rubber plant; Karpov Chemical plant; Nizhnekamsk Oil Processing plant; Nizhnekamskshina, etc. (see Fig 2)
Fig 2
Such a location forms an additional advantage for companies occupied in the target industries, since they tend to locate their production facilities close to processed raw materials producers, and the main raw mater