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Market Entry Research into Scandinavia




                                         Report by
                                Magnus Jon Harsem
                                         S2686728


                                            7024IBA
                International Business Internship III
                                    Semester II 2009
                          Convenor Mr. Ken Bennett
Table of Contents
 Table of Contents

          i      Considerations
      1       Introduction
          1     Introduction
      2       Driver Training Industry Research
          2    Driver Training Industry Research
      3       Product and service lines offered by Vigil
          3     Product and service lines offered by Vigil

      4       Driver Training CPC
          4    Driver Training CPC
      5       Industry Research
          5      SWOT Analysis of Global Market
      6       Market Portfolio Matrix
          6     Industry Research

      7 7     Road Accidents
               Relative Competitive Position

          8     Market Attractiveness
                                                             Prepared by Magnus Harsem 2686728
Table of Contents

     9    Market Portfolio Matrix

     10   Road Accidents

     11   PESTEL Analysis


     12   Global Financial Crisis

     13    Plan of Entry

     14   Market Entry Budget & Return on Investment

     15   Conclusion

     16   Action Plan
                                                 Prepared by Magnus Harsem 2686728
Considerations


Scandinavian market represents a potential AU 5 million dollar market for Vigil
Systems. In Vigil terms, 80 sales of systems divided by four countries.


    A budget of AU$ 70,000 in 2010 (not including wages) will jump start
       entry.

    Veolia Transport (already existing Vigil customer) has offices and an
       expanding presence in three countries: Norway, Sweden, & Finland.

    Positive trends showcase a bright future for public transport within all of
       Scandinavia.




                                                            Prepared by Magnus Harsem 2686728
Introduction


                          Vigil Systems Pty Ltd, a small firm based in Brisbane is a
                          provider of on-road driver training technology for commercial
                          vehicles such as:

                            Transit buses   Fire engines    Ambulances    Mining vehicles




The internship program focuses on generating a market
analysis of Scandinavia for Vigil Systems Pty Ltd. The
countries are:

       Norway      Sweden      Denmark      Finland

The project encompasses two areas of interest; especially fire
rescue related driver programs, but also the public transport
driver training programs in each country.




                                                                 Prepared by Magnus Harsem 2686728
Driver Training Industry



 The driver training industry is well behind that of many systems which are
 already in use in vehicles, such as navigation, driver control systems, and
 safety technology to prevent on-road problems.




                              01   It is small, relatively inexpensive compared
                                   to the larger simulators.

                             02    It can be set up in a matter of minutes on a
                                   vehicle.
                                   It does not necessarily have to remove the
                             03    vehicle from service.
                                   It incorporates on-hand, in real time
                             04    experience, for beginner or expert driver.




                                                              Prepared by Magnus Harsem 2686728
Product Lines by Vigil




      01   Vigil Manager driver management database as a learning
           and training management system

      02   VigilVanguard on-road training and evaluation system

      03   VigilPassenger portable driver assessment tool

      04   VigilNavigator in-vehicle route based navigation and training

      05   VigilVoyage video route training software




                                                       Prepared by Magnus Harsem 2686728
Product Lines by Vigil



   Vigil Systems also offers a range of consulting services such as:

         01     Training in technology integration services

         02     Strategic planning

         03     Transit training audits

         04     Transit operator assessments

         05     Standardized, comprehensive, transit-specific curriculum

         06     Training program development

         07     eLearning content development



                                                          Prepared by Magnus Harsem 2686728
SWOT Analysis


              Strength                         Weaknesses
       • Vertical integration             • Distance to markets
• Ability to tailor make products   • Lacking of brand awareness
   to customer’s specific needs         • Allocation of resources
       • Unique technology             • Uncertainty of revenues
            • Flexibility                    • # of salesmen




         Opportunities                          Threats
         • New markets                    • New technologies
 • New international employees        • Different Buying cycles
       • New Customers                   • New Competitors
                                         • lack of salesmen =
                                            Continued loss


                                                Prepared by Magnus Harsem 2686728
Driver Training CPC


Each country in Europe offers mostly private training for novice to experienced drivers.

Within the EU, the EC is responsible in regulating drivers licensing.

Each country within the EU is in charge with licensing and the subsequent licensed
drivers may drive on any road inside and outside of the EU.

The Driver Certificate of Professional Competence (Driver CPC) scheme was
established to improve the knowledge and skills of professional drivers.

Drivers are now required by law to undergo periodic training every five years


                         Captured Market Share Drivers by %
                                    Population
             100
              80
              60
              40
              20
               0
                     Norway       Sweden      Finland     Denmark




                                                                    Prepared by Magnus Harsem 2686728
Fire Rescue in Scandinavia
Industry Research


Oslo Fire Department:
         There are nine fire stations, including a harbor station.
         Oslo's 241 square km of forest put the department in a
         unique situation compared with other capital fire departments
         in Europe.

Bergen Fire Department
         The city of Bergen has been engulfed in flames numerous times,
        mostly prior to 1900.
         Bergen’s wharf sits on UNESCO’s list of World heritage sites and
        is an important part to the city.


Asker og Bærum Fire Department
        Expressed interest in Vigil Systems


Norway’s Fire School
        The top fire fighter college is in Fjelldal, 1,400 km north from
       Oslo in Northern Norway.


                                                                     Prepared by Magnus Harsem 2686728
Industry Research



 Stockholm’s Fire Department:
         A total of 27 fire stations make it the largest fire
         department in Sweden, with over 95 vehicles.


 Fire Training Colleges are:
          Rosersberg College
          Skovde College
          Revinge College
          Sandö College


 Swedish Civil Contingencies Agency is
         The Swedish Rescue Services Agency
         Swedish Emergency Management Agency (SEMA)
         National Board of Psychological Defense (SPF)



                                                            Prepared by Magnus Harsem 2686728
Industry Research


The City of Helsinki Rescue Department
          There are 22 rescue service areas in Finland, one of
           which is formed by the City of Helsinki.
          Inside the city there are nine stations
          The fire and rescue services have approximately 4 500
           vehicles in their use.


 Emergency Services College
         The college can accommodate 350 students



 SPEK – the Finnish National Rescue Association in Finland
         A non-profit organization funded by various foundations and
         funds which promotes preparedness of the citizens and community
         against risks and accidents.

         It operates in the field of fire and rescue service, and civil protection.


                                                                   Prepared by Magnus Harsem 2686728
Industry Research


Copenhagen Fire Department
         A total of seven stations make up the Fire Department within
         the City of Copenhagen
         with almost 120 vehicles in use.



Falck Denmark A/S
         Falck provides entire fire departments for 43 of Denmark’s
         98 municipalities, and shares duties in 24 of them with the
         municipal fire departments.
         Falck is the largest private ambulance company in Europe,
         providing 85% market share of ambulatory services in
         Denmark alone.
         Falck Training Center Denmark




                                                              Prepared by Magnus Harsem 2686728
Public Transport
Market Research


  Company           Employees         Number Vehicles      Total turn over (2008)

                                        610 Busses          266 million AUD
                      2000
                                        9 Trams             (1.355 billion
                                        28 Ferries          NOK)

                                                            334 million AUD
                       2000             1000 busses         (1.7 billion NOK)


                                                            726.5 million
                       4790             2300 busses         AUD (3.7 billion
                                                            NOK).

                                                             3.1 million
Oslotrikken AS         420              72 trams             vehicle km pr
                                                             year
   All Currency conversions done through www.xe.com on Sep 28, 2009
                                                        Prepared by Magnus Harsem 2686728
Market Share




               196.3    266

               334
                       726.5
                 199




                               Prepared by Magnus Harsem 2686728
Market Research



 Company          Employees   Number Vehicles       Total turn over

                                                    870.4 million AUD
                     7143       1442 busses
                                                    (5.18 billion SEK)



                                                      2 billion AUD
                     7000       2400 busses
                                                      (12 billion SEK)


                                                     419.9 million
                                1,500 busses
                     5,500                           AUD (2.5 billion
                                5,000 drivers        SEK)


                                230 trams             29.5 million KM
  Göteborgs
                     2700       420 busses                Annually
 Spårvägar AB


                                                Prepared by Magnus Harsem 2686728
Market Share

                              Market Share Sweden by Million AUD

                                                                                        Swebus AB
                                                                                        Swebus Express AB
                             870.9
                                                                                        Busslink
                                                2,000
                                                                                        Veolia
                            419.9                                                       GoByBus
                                                                                        other




                       Market Share by number of Vehicles
                          Gothenburgs Tram Network

                                        Veolia *2006

                        GoByBus (Nettbus AS Norway)

                                 Busslink (Keolis A B)

                                               Arriva

         Swebus Express AB (Concordia Bus Nordic AB)

                 Swebus AB (Concordia Bus Nordic AB)

                                                         0    500    1000       1500   2000     2500   3000


                                       Ma rket Sha re by number of Vehi cl es




                                                                                                 Prepared by Magnus Harsem 2686728
Market Research



   Company        Employees   Number Vehicles     Total turn over


                     4200                         745 million AUD
                                1720 busses
                                                  (3.262 billion DKK)


                                                   26.22 million AUD
                     N/A            N/A            (115 million DKK)



                                                   8.8 million AUD
                     7000        2400 busses       (38.5 million DKK)




                     1000           300                   N/A



                                                Prepared by Magnus Harsem 2686728
Market Share

                   Market Share Denmark by million AUD
                                                                           Arriva


                                                                           City Trafikk


                                                                           Concordia Buss


                                                                           Tide Buss
                                       745
                                                                           Nettbuss


                                                                           other


                       Market Share by number of Busses
       Tide Buss Danmark (City of Odense)


                Nettbus Danmark AS (NSB)

                           Concordia Bus


            City Trafi kk (Keolis Nordic AB)


                                     Arriva

                                               0            500     1000   1500             2000


                          Ma rke t Sha re by numbe r of Bus s e s



                                                                                Prepared by Magnus Harsem 2686728
Market Research



Company           Employees          Number Vehicles            Total turn over
                                     364 busses, as well      84.7 million AUD (50
                  1900: 711
                                     as Rail Road             million Euros) 528
                  employees within
                                     Ferry services,          million AUD as a
                  bus business
                                     Truck transport          whole

                                                               128 million AUD
                      700              500 busses              (7.554 million
                                                               Euros)


                                                               120.2 million AUD
                      737               420 busses             (721 million SEK)




                      788               368 busses             91.6 million AUD (54
                                                               million Euros)




                                                           Prepared by Magnus Harsem 2686728
Helsinki Tram

Quick Facts:

•       The trams are the main means of transport within the city centre.

•       53.9 million trips were made in 2008, which is more than those made
        with the Helsinki Metro.

•       The Helsinki tram network is one of the oldest electrified tram
        networks in the world.

•       There are 12 tram lines in operation as of 30 March 2009, with 132
        trams in operation.

•       The tram network is built almost exclusively on the streets of Helsinki,
        making it a traditional tram system, not a light rail one.

•       In some parts the tracks are separated from other road traffic,
        whereas elsewhere tracks lie on lanes that cars and buses may also
        use.

                                                           Prepared by Magnus Harsem 2686728
Market Share

                       Market Share Finland by million AUD



                           84.8                   91.6                             Eskelisen Lapinlinjat

                                                                                   Veolia Finland

                                                                                   Concordia Buss

                                                                                   Savonlinja


                                                  120.2                            Sarpon Liikenne

                           128                                                     Etelä-Suomen Linjaliikenne

                                                                                   Oy Pohjolan Liikenne Ab




                     Market Share by Number of Busses
                  Veolia *2006

      Helsingen Bussiliikenne Oy

                    Expressbus

                     VR group

     Etelä-Suomen Linjaliikenne

                     Savonlinja

                Concordia Bus

                                   0           100         200         300       400         500            600

                                       Ma rke t Sha re by Numbe r of Bus s e s



                                                                                                           Prepared by Magnus Harsem 2686728
Relative Competitive Position



          Factors          Weight   Rating    Score             Factors             Weight     Rating         Score
        Market Size         40        9        36            Market Size             40          8             32
      Market Growth         30        8        24           Market Growth            30          8             24
                                                                 Factors              Weight         Rating         Score
       Intensity of                                          Intensity of
       Competition          20        7        14             Market Size
                                                             Competition             20 40       7      9      14     36

        Degree of                                            Market Growth
                                                              Degree of                   30            8             24
       Competition          10        9         9            Competition             10          9             9

                                               83        Intensity of Competition         20            7      79     14
        Total Score                                           Total Score

                                                         Degree of Competition     10                   9             9
          Factors          Weight   Rating    Score           Factors          Weight          Rating         Score
        Factors
        Market Size        Weight
                            40       Rating
                                     7          Score
                                               28           Market Score
                                                              Total Size        40               4             16     83

      Market Growth
      Market Size           30
                            40        49       12 36        Market Growth            30          4             12
       Intensity of
    Market Growth           30            8         24       Intensity of
      Competition           20        4        8             Competition             20          5             10
          Degree of
Intensity of Competition    20            7         14        Degree of
         Competition        10        5        5             Competition             10          4             4

Degree of Competition
       Total Score           10           9    53 9           Total Score                                      42
      Total Score                                   83



                                                                                    Prepared by Magnus Harsem 2686728
Market Attractiveness




         Finland        Denmark   Norway   Sweden



                                            Prepared by Magnus Harsem 2686728
Market Portfolio Matrix




                   Relative Competitive Position Scores
                          83 Sweden           53 Denmark

                          79 Norway           42 Finland

                                                          Prepared by Magnus Harsem 2686728
Road Accidents


                 Scandinavia compared with whole of EU
                                                          Average EU-27
                                                          Norway
                                                          Finland
                                                          Sweden
                                                          Denmark




                                                 Source: European Commission Care Database 2008


An explanation of the reverse trend in Norway may be that the young driver
group (18-24) have seen a 50% rise in fatalities. Sweden is listed one of three for
being the safest countries road wise (Norway was a frontrunner until recently).

                                                                 Prepared by Magnus Harsem 2686728
PESTEL Analysis

  Political       Economic
                                                `
                                      Socio-Cultural Technology Environment              Legal

 • Norwegian      • 5th largest oil    • Voted #1 by   • Biomethane    Oslo aims to      Privacy
 Labour Party     producer             UN              • Natural gas   be one of the     Issues, Import
 • Jens           • energy             • Public        • Ethanol mix   most              Duty = 0%,
 Stoltenberg      expensive            Transport       • Electric      environmental     MVA = 25%,
                  • Economy            popular in      hybrid          ly sustainable    Safety
 • Favour         ranked #24 in        large urban                     capitals in the   certificates
 public           the world            areas
 transport as a                                                        world.
                                       • People
 means to                              abandoning
 combat                                cars
 climate
 change


 • Fredrik        • Economy            • Voted #7 by   • Hydrogen      Ban on petrol     EU Directive
 Reinfeldt        ranked #22           UN              fueled fleet    car in 2025.      2002/58/EC
 • Centre-Right   • Stockholm          • 5% surge in   • Natural gas                     Import Duty =
 Alliance         congestion tax       Public          • Ethanol mix                     3.7%, VAT =
 • Favour         scheme               Transport       • Electric                        15%, Safety
 public                                                hybrid                            certificates
 transport



                                                                          Prepared by Magnus Harsem 2686728
PESTEL Analysis

Political        Economic Socio-Cultural Technology Environment                        Legal
• Lars Løkke     • Subsidized      Voted #16 by   Electric busses   Over a           EU Directive
Rasmussen        public            UN                               millions         2002/58/ECIim
                 transport                                          cyclists,        port Duty =
• Liberal        networks                                           support public   3.7%, VAT =
Party &                                                             transit          15%, Safety
Conservative                                                                         certificates
People’s Party



• Matti          • Economy         Voted #12 by   Trams             CO2 conscious    Same
Vanhanen         ranked #33        UN             Similar tech as
                 Value-added                      rest of
• Centre Party   tax for public                   Scandinavia
Subsidizing PL   transport
now for first    services is now
time in 2009     8% instead of
                 22%.




                                                                        Prepared by Magnus Harsem 2686728
Plan of Entry

   Country                 Trend in                                                                                      # Public
    Rank                    Public             GDP Growth              Population of           # Fire Houses            Transport
                          Transport                                    capitol cities                                   Companies

        #1                 Positive            2007 + 4.7%              1.5 million                  234
                           growth:             2008 + 2.7%                  +0.49%               Nationwide                10 +
                            High               2009 - 0.4%                  growth              10 in capitol

        #2                 Positive            2007 + 4.6%              1.4 million                  300
                           growth:             2008 + 3.7%                  +2.0 %               Nationwide                10 +
                            High               2009 + 2.6%                  growth               8 in capitol

        #3                Positive             2007 + 3.2%              1.1 million                  241
                          growth:              2008 + 1.7%                   +0.24               Nationwide                 6+
                          Medium               2009 -1.2%                   growth               7 in Capitol

        #4               Positive              2007 + 5.5%                1 million                  788
                         growth:               2008 + 4.5%                  +0.38%               nationwide                 6+
                         Med-Low               2009 + 0.9%                  growth               9 in capitol
Sources: UNdata June, 2009, UN World Population Prospects, US Census Bureau—International Data Base (IDB), Geohive, fire department websites.




                                                                                                        Prepared by Magnus Harsem 2686728
Market Entry Budget
Travel Costs:
Two people traveling first year (4 trips)
              Air ($2,000 each)                                                                    $12,000
              Accommodation
              Sustenance                                                                           $ 4,000
              Misc.                                                                                $ 1,000
               Total                                                                               $32,500.00
Marketing
               Advertising                                                                         $ 1,000
               Promotional material (Demo & CD)                                                    $ 800
               Trade Show                                                                          $ 3,500
               Application fees for establishing name in EU                                        $ 1,500
               Misc.                                                                               $ 1,000
               Total                                                                               $ 5,800.00
R&D
               Full cost of mapping license for 4 countries ($3,000 each)                          $12,000
               Total                                                                               $12,000
Legal
               Import duties (EU only) 3.7% on $120,000                                            $ 4,400
               MVA (Norway only) 25% on 120,000 could be split              *                      $ 30,000**
               Total                                                                               $ 34,000

Budget Total                                                                                 $ 84,800.00**
*MVA of 25% tax is placed on any import to be used within the borders of Norway. The Total can be split between
buyer and seller (common).

**If MVA is split 50/50, the budget total would be closer to $69,800.00

                                                                                  Prepared by Magnus Harsem 2686728
Return on Investment




      Year           * 2010           2011            2012           2013              2014
      ROI              3.4x            12x            18x             12x              12x
                    240,000         480,000         720,000
      Profit         from 4          from 8         from 12        480,000         480,000
     (AUD)          systems         systems         systems

     Costs           70,000        40,000**        40,000**       40,000**        40,000**

               ROI computed using the formulae ROI = (Income/Cost) as a ratio
             *Note the first year may experience a break even point, with few sales.
              ROI Table to be used as an example only, all numbers are samples.
                 **Depending upon sales total - taxes paid will increase costs




                                                                             Prepared by Magnus Harsem 2686728
Conclusion

Scandinavian Market:
        Mature
        Expanding
        Environment conscious initiatives funded by GOV’s.
        Safety first mentality

        Fire :
        Driver training is private
        Scandinavia reports very low accidents with their vehicles compared with
        the likes of the USA. This however, should not deter direct talks and
        further produce interest to better train and manage Scandinavian fire
        fighting drivers. Interest from Asker & Bærum Fire Chief Anne Hjort.

        Public Transport:
        Due to environmental concerns Vigil could take advantage and market
        itself as a green company.
                            in Norway, Sweden, & Finland with 2,457+
                            busses in operation


                                                             Prepared by Magnus Harsem 2686728
Action Plan


Strategic Goal             Strategy             Objective          Responsibility         Timeline
1. Review Market        Make Contact            Establishing       To Be Announced      25.01.2010 to
     Research         Sweden - Norway            Interest &                              25.07.2010
                      Denmark - Finland
                                             Qualifying clients


   2. Penetrate       Business Trip with        Establishing            TBA             25.01.2010 to
  Scandinavian        Ian Haynes to meet          Interest                               25.07.2010
 Market using US      prospective clients            &
     strategy                                Qualifying clients

3. Consider current   If necessary Change       Sale of Vigil           TBA             01.08.2010 to
   Plan, adjust               Plan:           Systems in each                            12.12.2010
   accordingly         Qualify interest in        country
                        leasing options
4. Sale of Systems       Direct Selling:     Sale of 1 System in        TBA             10.01.2011 to
                                              each country or                            10.07.2011
                                                 Leasing 2

                                                                               Prepared by Magnus Harsem 2686728
References
Thompson, Jamie 2007. Swedish firefighter, researcher schools FRI audience on safety. Fire Rescue Available at: [http://www.firerescue1.com/firefighter-
safety/articles/309234-Swedish-firefighter-researcher-schools-FRI-audience-on-safety/] Accessed on September 24, 2009.

Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of
individuals with regard to the processing of personal data and on the free movement of such data, O.J. L 281,
23.11.1995.

Electronic Privacy Information Centre. Privacy and Human Rights 2005: An International Survey of
Privacy Laws and Developments, 2005.

About the Data Inspectorate. Available online at [http://www.datatilsynet.no/templates/Page____194.aspx] Accessed October 1 st, 2009.

Austrade. 2009 Available online at [http://www.austrade.gov.au/Country/default.aspx] Accessed October 1 st, 2009.

Newspapers
Norways #1 News Available online at [http://www.aftenposten.no/] Accessed October 1 st, 2009.

Swedens #1 News Available online at [http://www.aftonbladet.se/] Accessed October 1 st, 2009.

Following rubbish with GPS. 2006 Available Online: [www.lbsinnovasjon.no/lastned.asp?Dokument=aftenposten11mars06] Accessed October 3rd, 2009.

EU 1993. Available Online: [http://en.wikipedia.org/wiki/European_union] Accessed October 3rd, 2009.

City of Helsinki Rescue Department updates its fire engine fleet: Record number of new vehicles taken into service. 2008 Available Online:
[http://www.hs.fi/english/article/City+of+Helsinki+Rescue+Department+updates+its+fire+engine+fleet/1135235618831] Accessed October 3rd, 2009.

City of Helsinki Rescue Department Annual Report 2008. Available Online:
[http://www.hel.fi/wps/wcm/connect/ab5674004e689a518442b6678a385f98/Toimintakertomus+2008.pdf?MOD=AJPERES&CACHEID=ab5674004e689a518442b6678a385f9
8] Accessed October 3rd, 2009.
Global Financial Crisis Hits Norwegian banking Sector. Dec 2008. Available Online:
[http://findarticles.com/p/articles/mi_qa5463/is_200812/ai_n31427121/pg_2/?tag=content;col1] Accessed October 3rd, 2009.

Bus news and environment. 2008. Available Online: [http://www.icenews.is/index.php/information/bus/] Accessed October 3rd, 2009.

International Association of Fire and Rescue Available Online: [http://www.ctif.org/Introduction,25] Accessed October 3rd, 2009.

Brushlinsky, N.N., J.R. Hall, S.V. & Sokolov, P. Wagner. 2006. Center of Fire Statistics. Moscow. Available Online:
[http://www.ctif.org/IMG/pdf/CTIF_report11_world_fire_statistics_2006-2.pdf] Accessed October 3rd, 2009.

[http://www.dos.state.ny.us/fire/loddstats/loddstats.ppt#289,7] Accessed October 8th, 2009.


                                                                                                                                Prepared by Magnus Harsem 2686728
References cont.
Fire Departments

Oslo’s Fire Station Home Page Available Online: [http://www.brann-og-redningsetaten.oslo.kommune.no/om_oss/samarbeid/] Accessed October 3rd, 2009.

Copenhagen Fire Department Contact Available Online: [http://www.brand.kk.dk] Accessed October 8th, 2009.

Helsinki Rescue Department Available Online: [http://www.hel2.fi/pel/] Accessed October 8th, 2009.

Rescue Services in Finland Available Online: [http://www.pelastustoimi.fi/en/in-brief/] Accessed October 8th, 2009.


Stockholm Fire Department Unofficial Available Online: [http://www.brandforsvar.se/sthlm.htm] Accessed October 8th, 2009.


Ambulance Crash-Related Injuries Among Emergency Medical Services Workers --- United States, 1991—2002. Available Online:
[http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5208a3.htm] Accessed October 8th, 2009.


US Firefighter Deaths by Type of Duty, 2008 source: USFA. Available Online:
[http://www.dos.state.ny.us/fire/loddstats/loddstats.ppt#289,7] Accessed October 8th, 2009.

Prices for Drivers Licences comparison in Scandinavia. Aftenposten. Available Online:
[http://aftenbladet.no/innenriks/993606/Enorme_prisforskjeller_i_Norge_og_Sverige.html] Accessed October 13th, 2009.


Cars registered in Norway 2004. Available Online: [http://www.ssb.no/bilreg/tab-2004-05-04-01.html] Accessed October 8th, 2009.


Cars registered in Finland Available Online: [http://tilastokeskus.fi/tup/suoluk//taskue_liikenne.html] Accessed October 8th, 2009.

Cars registered in Sweden Available Online: [http://www.scb.se/statistik/TK/TK1001/2004M06/TK1001FORD2.xls] Accessed October 8th, 2009.

Cars registered in Denmark Available Online:
[http://www.dst.dk/asp2xml/external/external.asp?title=Statistisk%20%C3%85rbog%20side%20353&ancestor=Vejviser&file=/pukora/epub/upload/7423/headword/dk/353.pdf&
show=/pdf] Accessed October 8th, 2009.

Connex Transport AB Northern Europe Annual Turnover figures from 2004. Available Online:
[http://www.connex.info/uploadConnex/ConnexPoland/Broszury%20Firmowe/Connex%20Transport%20AB%20Presentation%20April%202005.pdf] Accessed October 8th,
2009.


                                                                                                                                      Prepared by Magnus Harsem 2686728
References cont.


2006 Annual Report. Available Online: [http://www.connex.info/tmpl/ExtensionPage____2743.aspx?epslanguage=ML] Accessed October 8th, 2009.
 IEECE Website for Safety Testing Available Online: [http://www.cbscheme.org/default.html] Accessed October 8th, 2009.

Denmark Best Country for Business according to Forbes. Available Online: [http://blogs.cbs.dk/mba_diary/?p=137] Accessed October 8th, 2009.


2008 Investment Climate Statement – Norway
Available Online: [http://www.state.gov/e/eeb/ifd/2008/100996.htm] Accessed October 8th, 2009.

Prices for Drivers Education – Norway. Available Online: [http://forbrukerportalen.no/Tester/2006/1151654397.81/test_view?expandedtopic:ustring:utf8=1151654397.84#facet]
Accessed October 8th, 2009.

Information related to total number of fire departments in Norway and Sweden. 2007. Available online: [http://www.mail-
archive.com/massfire@googlegroups.com/msg00196.html] Accessed October 29, 2009.

Populations by country. 2009 .UNdata June, 2009, Available online: [http://data.un.org/Data.aspx?d=PopDiv&f=variableID%3A12] Accessed October 29, 2009.

UN World Population Prospects 2009. Available online: [http://esa.un.org/unpp/] Accessed October 29, 2009.


US Census Bureau—International Data Base (IDB) Available online: [http://www.census.gov/ipc/www/idb/] Accessed October 29, 2009.

Geohive: Global Statistics. Available online: [http://www.geohive.com/default1.aspx] Accessed October 29, 2009.




                                                                                                                              Prepared by Magnus Harsem 2686728
Appendix


                                Fire Stations in Stockholm
Brännkyrka brandstation                        Katarina brandstation
Mickelsbergsvägen 1,                           Tjärhovsgatan 9
125 33 Älvsjö                                  116 21 Stockholm
Tel: +44 08-454 87 00                          Tel: 08-454 87 00
Chief Hans Malm: 08-454 88 15                  Chief: Pelle Rytterlund: 08-454 88 13
Fax 08-406 86 05                               Brandmästare: 08- 454 88 23
                                               Fax: 08-406 86 22
Farsta brandstation
Lingvägen 155,                                 Kista brandstation
123 59 Farsta                                  Danmarksgatan 50
Tel: +44 08-454 87 00                          164 40 Kista
Chief Liisa Honkaranta: 08-454 88 14           Tel: 08-454 87 00
Brandmästare: 08-454 88 24                     Chief: Peter Karlsson: 08-454 88 18
Fax: 08-406 86 02                              Fax: 08-406 86 13

Johannes brandstation                          Kungsholmens brandstation
Malmskillnadsgatan 64                          Kronobergsgatan 2
111 38 Stockholm                               112 38 Stockholm
Tel: 08-454 87 00                              Tel: 08-454 87 00
Fax: 08-454 89 01                              Chief: Rolf Grossman: 08-454 88 17
                                               Fax 08-406 86 16



                                                                         Prepared by Magnus Harsem 2686728
Appendix


                                      Fire Stations in Stockholm
Lidingö brandstation                                 Täby brandstation
Vasavägen 62                                         Nytorpsvägen 3
181 41 Lidingö                                       183 53 Täby
Tel: 08-454 87 00                                    Chief: Jimmy Haglund
Chief: Dan Hallman: 08-454 87 50                     Tel: 08-454 87 00
Fax: 08-406 86 29                                    Fax: 08-792 99 99

Ljusterö brandstation                                Vallentuna brandstation
Ljusterövägen 178                                    Vallentuna
184 97 LJUSTERÖ                                      Lindholmsvägen 2
Chief: Ulf Widell tel: 08-792 99 61                  Chief: Johan Kroon
Tel: 08-542 413 09                                   Tel:08-454 87 00
Fax: 08-542 411 29                                   Fax: 08-511 762 26


Solna - Sundbyberg brandstation                      Vaxholms brandstation
Ekensbergsvägen 87                                   Eriksöv 2
169 31 Solna                                         18534 VAXHOLM
Tel: 08-454 87 00                                    Chief: Ulf Widell
Chief: Johan Berg: 08-454 88 69                      Tel: 08-454 87 00
Fax: 08-454 89 63                                    Fax: 541 302 95



                                                                               Prepared by Magnus Harsem 2686728
Appendix


                                   Fire Stations in Stockholm
Vällingby brandstation                            Östermalms brandstation
Krossgatan 4-8,                                   Artillerigatan 69,
162 50 Vällingby                                  114 45 Stockholm
Tel: 08-454 87 00                                 Tel: 08-454 87 00
Chief: Claes Looft: 08-454 88 19                  Chief: Ulf Appel: 08-454 88 12
Fax: 08-406 86 19                                 Fax: 08-406 86 09
                                                  Fax: 08-406 86 08

Värmdö brandstation
Fenix väg 1
134 81 GUSTAVSBERG
Chief: Tenny Sundh
Tel: 08-454 87 00
Fax: 08-570 323 36

Åkersberga brandstation
Stationsvägen 12
18450 ÅKERSBERGA
Chief: Ulf Widell
Vxl: 08-454 87 00
Telefon direkt: 08-792 99 60
Fax: 08-540 672 80

                                                                           Prepared by Magnus Harsem 2686728
Appendix


                            Fire Stations in Oslo
    Stasjon 1                                       Stasjon 2
    Briskeby brannstasjon                           Smestad brannstasjon
    Industrigata 1-3                                Ullernchausseen 26
    Tel +47 23 46 96 30                             Tel +47 23 46 96 40


    Stasjon 3                                       Stasjon 5
    Sagene brannstasjon                             Grorud brannstasjon
    Sandakerveien 58 A                              Fossumveien 75
    Tel +47 22 89 38 20                             Tel +47 22 78 99 90
    Stasjon 6                                       Stasjon 7
    Bryn brannstasjon                               Havnestasjonen
    Tvetenveien 18
    Tel +47 22 88 13 40                             Stasjon 9 : Headquarters and main fire station

    Stasjon 8                                       Fire Chief: Jon Myroldhaug
                                                    Arne Garborgs plass 1, 0179
    Ekebergveien 174                                Tel +47 02 180


                                                                       Prepared by Magnus Harsem 2686728
Appendix

                                          Fire Stations in Copenhagen
Tomsgårdens Brandstation / Team STT (Ambulatory)                            Dæmningens Brandstation
Frederikssundsvej 83 B                                                      Hansstedvej 7
2400 København NV                                                           2500 Valby
Fire Chief: Nils Lyng                                                       Fire Chief: Ole Nielsen
tlf.: 3366 1855 Mobil.: 2686 7002                                           Tlf. 3366 1900. Mobil: 2688 2995
E-mail: nillyn@okf.kk.dk                                                    E-mail: oniels@okf.kk.dk
Stations secretary: Tabitha Daric-Schøtt
Tel:: 3366 1856 - 3366 1870                                                  Vesterbro Brandstation
E-mail: tabdar@okf.kk.dk                                                    Enghavevej 168-170
                                                                            2450 København SV
Østerbro Brandstation                                                       Fire Chief: Ole Gammelby
Østbanegade 89                                                              tlf.: 3366 1950. mobil: 26864861
2100 København Ø                                                            E-mail: olegam@okf.kk.dk
Fire Chief Nils Lyng                                                        Stations secretary Marianne Børgesen
tlf.: 3366 4865 Mobil: 2686 7002                                            E-mail: mahans@okf.kk.dk
E-mail: nillyn@okf.kk.dk                                                    tlf.: 3366 1951. tlf.nr.: 33662996
Stations secretary Tabitha Daric-Schjøtt
E-mail: tabdar@okf.kk.dk                                                    Christianshavns Brandstation
                                                                            Markmandsgade 15
Fælledvej Brandstation                                                      2300 København S
Fælledvej 20 A                                                              Fire Chief Ole Gammelby
2200 København N                                                            tlf.: 2686 4861
Fire Chief: Ole Nielsen                                                     E-mail: olegam@okf.kk.dk
Tlf. 3366 4862. Mobil: 2688 2995                                            Stations secretary Marianne Børgesen
E-mail: oniels@okf.kk.dk                                                    E-mail: mahans@okf.kk.dk
Stations secretary Marianne Børgesen                                        Tel.: +44 3366 2996
E-mail: mahans@okf.kk.dk
Tlf. 3366 2996         Source: In English http://www.brand.kk.dk/neobuilder.php?id=200201281526119000000030347


                                                                                                                 Prepared by Magnus Harsem 2686728
Appendix


                               Fire Stations in Helsinki

Erottaja Rescue Station (station 2)               Mellunkylä Rescue Station (station 6)
Korkeavuorenkatu 26                               Linnanpajantie 6
FI-00130 HELSINKI                                 FI-00950 HELSINKI

Haaga Rescue Station (station 3)                  Herttoniemi Rescue Station (station 7)
Vanha Turunmaantie 2                              Sorvaajankatu 16
FI-00300 HELSINKI                                 FI-00810 HELSINKI

Käpylä Rescue Station (station 4)                 Suomenlinna Rescue Station
Kullervonkatu 7                                   Suomenlinna
FI-00600 HELSINKI                                 FI-00190 HELSINKI

Malmi Rescue Station (station 5)                  Helsinki Rescue Station (1)
Malmi Airport                                     Headquarters and main fire station
FI-00700 HELSINKI                                 Steniuksentie 14
                                                  FI-00320 HELSINKI




                                                                            Prepared by Magnus Harsem 2686728
Appendix

                         Company Addresses
                                    Veolia Transport Sweden
                                    Allen 6A, Syndbyberg
                                    171 24 Solna
                                    Concordia Buss Nordic AB
                                    Swebus AB
                                    Armegatan 38
                                    17171 Solna, Stockholm
                                    Keolis Nordic AB
                                    Busslink
                                    Sjöviksbacken 24
                                    117 43 Stockholm

                                    Slussplatsen 1, Göteborg
           Göteborgs Spårvägar AB   Hållplats Drottningtorget S-
                                    401 26 GÖTEBORG

                                                       Prepared by Magnus Harsem 2686728
Appendix

                     Company Addresses

                                Klubbgaten1
                                4013 Stavanger


                                Møllendalsveien 1A, 5009
                                Bergen


                                Skippergaten 31, 4 floor
                                Konsernstaben, 0048 Oslo


                                Storoveien 25
           Oslotrikken AS       0048, Oslo




                                                  Prepared by Magnus Harsem 2686728
Appendix

           Company Addresses
                      Arriva Group (UK)
                      Arriva Denmark
                      Skøjtevej 26
                      DK-2770 Kastrup
                      Møllendalsveien 1A,
                      5009 Bergen Norway



                      Malervangen 9
                      2600 Glostrup


                      City Trafik A/S
                      Naverland 20
                      2600 Glostrup




                                            Prepared by Magnus Harsem 2686728
Appendix

           Company Addresses
                    Pohjolan Liikenne AB
                    Postintaival 3
                    00240 HELSINKI


                    Savonlinja AB
                    Otavankatu 23, P.0.Box 400,
                    FI-50101 Mikkeli


                    Concordia Buss Nordic AB
                    Hallinto Klovinpellontie 5
                    02180 Espoo


                    Veolia Transport
                    Connex Finland Oy
                    Laurinmaenkuja 3B
                    FI-00440 Helsinki


                                           Prepared by Magnus Harsem 2686728
Appendix




           Prepared by Magnus Harsem 2686728
Appendix




           Prepared by Magnus Harsem 2686728

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Transport Biz in Scandinavia

  • 1. Market Entry Research into Scandinavia Report by Magnus Jon Harsem S2686728 7024IBA International Business Internship III Semester II 2009 Convenor Mr. Ken Bennett
  • 2. Table of Contents Table of Contents i Considerations 1 Introduction 1 Introduction 2 Driver Training Industry Research 2 Driver Training Industry Research 3 Product and service lines offered by Vigil 3 Product and service lines offered by Vigil 4 Driver Training CPC 4 Driver Training CPC 5 Industry Research 5 SWOT Analysis of Global Market 6 Market Portfolio Matrix 6 Industry Research 7 7 Road Accidents Relative Competitive Position 8 Market Attractiveness Prepared by Magnus Harsem 2686728
  • 3. Table of Contents 9 Market Portfolio Matrix 10 Road Accidents 11 PESTEL Analysis 12 Global Financial Crisis 13 Plan of Entry 14 Market Entry Budget & Return on Investment 15 Conclusion 16 Action Plan Prepared by Magnus Harsem 2686728
  • 4. Considerations Scandinavian market represents a potential AU 5 million dollar market for Vigil Systems. In Vigil terms, 80 sales of systems divided by four countries. A budget of AU$ 70,000 in 2010 (not including wages) will jump start entry. Veolia Transport (already existing Vigil customer) has offices and an expanding presence in three countries: Norway, Sweden, & Finland. Positive trends showcase a bright future for public transport within all of Scandinavia. Prepared by Magnus Harsem 2686728
  • 5. Introduction Vigil Systems Pty Ltd, a small firm based in Brisbane is a provider of on-road driver training technology for commercial vehicles such as: Transit buses Fire engines Ambulances Mining vehicles The internship program focuses on generating a market analysis of Scandinavia for Vigil Systems Pty Ltd. The countries are: Norway Sweden Denmark Finland The project encompasses two areas of interest; especially fire rescue related driver programs, but also the public transport driver training programs in each country. Prepared by Magnus Harsem 2686728
  • 6. Driver Training Industry The driver training industry is well behind that of many systems which are already in use in vehicles, such as navigation, driver control systems, and safety technology to prevent on-road problems. 01 It is small, relatively inexpensive compared to the larger simulators. 02 It can be set up in a matter of minutes on a vehicle. It does not necessarily have to remove the 03 vehicle from service. It incorporates on-hand, in real time 04 experience, for beginner or expert driver. Prepared by Magnus Harsem 2686728
  • 7. Product Lines by Vigil 01 Vigil Manager driver management database as a learning and training management system 02 VigilVanguard on-road training and evaluation system 03 VigilPassenger portable driver assessment tool 04 VigilNavigator in-vehicle route based navigation and training 05 VigilVoyage video route training software Prepared by Magnus Harsem 2686728
  • 8. Product Lines by Vigil Vigil Systems also offers a range of consulting services such as: 01 Training in technology integration services 02 Strategic planning 03 Transit training audits 04 Transit operator assessments 05 Standardized, comprehensive, transit-specific curriculum 06 Training program development 07 eLearning content development Prepared by Magnus Harsem 2686728
  • 9. SWOT Analysis Strength Weaknesses • Vertical integration • Distance to markets • Ability to tailor make products • Lacking of brand awareness to customer’s specific needs • Allocation of resources • Unique technology • Uncertainty of revenues • Flexibility • # of salesmen Opportunities Threats • New markets • New technologies • New international employees • Different Buying cycles • New Customers • New Competitors • lack of salesmen = Continued loss Prepared by Magnus Harsem 2686728
  • 10. Driver Training CPC Each country in Europe offers mostly private training for novice to experienced drivers. Within the EU, the EC is responsible in regulating drivers licensing. Each country within the EU is in charge with licensing and the subsequent licensed drivers may drive on any road inside and outside of the EU. The Driver Certificate of Professional Competence (Driver CPC) scheme was established to improve the knowledge and skills of professional drivers. Drivers are now required by law to undergo periodic training every five years Captured Market Share Drivers by % Population 100 80 60 40 20 0 Norway Sweden Finland Denmark Prepared by Magnus Harsem 2686728
  • 11. Fire Rescue in Scandinavia
  • 12. Industry Research Oslo Fire Department: There are nine fire stations, including a harbor station. Oslo's 241 square km of forest put the department in a unique situation compared with other capital fire departments in Europe. Bergen Fire Department The city of Bergen has been engulfed in flames numerous times, mostly prior to 1900. Bergen’s wharf sits on UNESCO’s list of World heritage sites and is an important part to the city. Asker og Bærum Fire Department Expressed interest in Vigil Systems Norway’s Fire School The top fire fighter college is in Fjelldal, 1,400 km north from Oslo in Northern Norway. Prepared by Magnus Harsem 2686728
  • 13. Industry Research Stockholm’s Fire Department: A total of 27 fire stations make it the largest fire department in Sweden, with over 95 vehicles. Fire Training Colleges are: Rosersberg College Skovde College Revinge College Sandö College Swedish Civil Contingencies Agency is The Swedish Rescue Services Agency Swedish Emergency Management Agency (SEMA) National Board of Psychological Defense (SPF) Prepared by Magnus Harsem 2686728
  • 14. Industry Research The City of Helsinki Rescue Department There are 22 rescue service areas in Finland, one of which is formed by the City of Helsinki. Inside the city there are nine stations The fire and rescue services have approximately 4 500 vehicles in their use. Emergency Services College The college can accommodate 350 students SPEK – the Finnish National Rescue Association in Finland A non-profit organization funded by various foundations and funds which promotes preparedness of the citizens and community against risks and accidents. It operates in the field of fire and rescue service, and civil protection. Prepared by Magnus Harsem 2686728
  • 15. Industry Research Copenhagen Fire Department A total of seven stations make up the Fire Department within the City of Copenhagen with almost 120 vehicles in use. Falck Denmark A/S Falck provides entire fire departments for 43 of Denmark’s 98 municipalities, and shares duties in 24 of them with the municipal fire departments. Falck is the largest private ambulance company in Europe, providing 85% market share of ambulatory services in Denmark alone. Falck Training Center Denmark Prepared by Magnus Harsem 2686728
  • 17. Market Research Company Employees Number Vehicles Total turn over (2008) 610 Busses 266 million AUD 2000 9 Trams (1.355 billion 28 Ferries NOK) 334 million AUD 2000 1000 busses (1.7 billion NOK) 726.5 million 4790 2300 busses AUD (3.7 billion NOK). 3.1 million Oslotrikken AS 420 72 trams vehicle km pr year All Currency conversions done through www.xe.com on Sep 28, 2009 Prepared by Magnus Harsem 2686728
  • 18. Market Share 196.3 266 334 726.5 199 Prepared by Magnus Harsem 2686728
  • 19. Market Research Company Employees Number Vehicles Total turn over 870.4 million AUD 7143 1442 busses (5.18 billion SEK) 2 billion AUD 7000 2400 busses (12 billion SEK) 419.9 million 1,500 busses 5,500 AUD (2.5 billion 5,000 drivers SEK) 230 trams 29.5 million KM Göteborgs 2700 420 busses Annually Spårvägar AB Prepared by Magnus Harsem 2686728
  • 20. Market Share Market Share Sweden by Million AUD Swebus AB Swebus Express AB 870.9 Busslink 2,000 Veolia 419.9 GoByBus other Market Share by number of Vehicles Gothenburgs Tram Network Veolia *2006 GoByBus (Nettbus AS Norway) Busslink (Keolis A B) Arriva Swebus Express AB (Concordia Bus Nordic AB) Swebus AB (Concordia Bus Nordic AB) 0 500 1000 1500 2000 2500 3000 Ma rket Sha re by number of Vehi cl es Prepared by Magnus Harsem 2686728
  • 21. Market Research Company Employees Number Vehicles Total turn over 4200 745 million AUD 1720 busses (3.262 billion DKK) 26.22 million AUD N/A N/A (115 million DKK) 8.8 million AUD 7000 2400 busses (38.5 million DKK) 1000 300 N/A Prepared by Magnus Harsem 2686728
  • 22. Market Share Market Share Denmark by million AUD Arriva City Trafikk Concordia Buss Tide Buss 745 Nettbuss other Market Share by number of Busses Tide Buss Danmark (City of Odense) Nettbus Danmark AS (NSB) Concordia Bus City Trafi kk (Keolis Nordic AB) Arriva 0 500 1000 1500 2000 Ma rke t Sha re by numbe r of Bus s e s Prepared by Magnus Harsem 2686728
  • 23. Market Research Company Employees Number Vehicles Total turn over 364 busses, as well 84.7 million AUD (50 1900: 711 as Rail Road million Euros) 528 employees within Ferry services, million AUD as a bus business Truck transport whole 128 million AUD 700 500 busses (7.554 million Euros) 120.2 million AUD 737 420 busses (721 million SEK) 788 368 busses 91.6 million AUD (54 million Euros) Prepared by Magnus Harsem 2686728
  • 24. Helsinki Tram Quick Facts: • The trams are the main means of transport within the city centre. • 53.9 million trips were made in 2008, which is more than those made with the Helsinki Metro. • The Helsinki tram network is one of the oldest electrified tram networks in the world. • There are 12 tram lines in operation as of 30 March 2009, with 132 trams in operation. • The tram network is built almost exclusively on the streets of Helsinki, making it a traditional tram system, not a light rail one. • In some parts the tracks are separated from other road traffic, whereas elsewhere tracks lie on lanes that cars and buses may also use. Prepared by Magnus Harsem 2686728
  • 25. Market Share Market Share Finland by million AUD 84.8 91.6 Eskelisen Lapinlinjat Veolia Finland Concordia Buss Savonlinja 120.2 Sarpon Liikenne 128 Etelä-Suomen Linjaliikenne Oy Pohjolan Liikenne Ab Market Share by Number of Busses Veolia *2006 Helsingen Bussiliikenne Oy Expressbus VR group Etelä-Suomen Linjaliikenne Savonlinja Concordia Bus 0 100 200 300 400 500 600 Ma rke t Sha re by Numbe r of Bus s e s Prepared by Magnus Harsem 2686728
  • 26. Relative Competitive Position Factors Weight Rating Score Factors Weight Rating Score Market Size 40 9 36 Market Size 40 8 32 Market Growth 30 8 24 Market Growth 30 8 24 Factors Weight Rating Score Intensity of Intensity of Competition 20 7 14 Market Size Competition 20 40 7 9 14 36 Degree of Market Growth Degree of 30 8 24 Competition 10 9 9 Competition 10 9 9 83 Intensity of Competition 20 7 79 14 Total Score Total Score Degree of Competition 10 9 9 Factors Weight Rating Score Factors Weight Rating Score Factors Market Size Weight 40 Rating 7 Score 28 Market Score Total Size 40 4 16 83 Market Growth Market Size 30 40 49 12 36 Market Growth 30 4 12 Intensity of Market Growth 30 8 24 Intensity of Competition 20 4 8 Competition 20 5 10 Degree of Intensity of Competition 20 7 14 Degree of Competition 10 5 5 Competition 10 4 4 Degree of Competition Total Score 10 9 53 9 Total Score 42 Total Score 83 Prepared by Magnus Harsem 2686728
  • 27. Market Attractiveness Finland Denmark Norway Sweden Prepared by Magnus Harsem 2686728
  • 28. Market Portfolio Matrix Relative Competitive Position Scores 83 Sweden 53 Denmark 79 Norway 42 Finland Prepared by Magnus Harsem 2686728
  • 29. Road Accidents Scandinavia compared with whole of EU Average EU-27 Norway Finland Sweden Denmark Source: European Commission Care Database 2008 An explanation of the reverse trend in Norway may be that the young driver group (18-24) have seen a 50% rise in fatalities. Sweden is listed one of three for being the safest countries road wise (Norway was a frontrunner until recently). Prepared by Magnus Harsem 2686728
  • 30. PESTEL Analysis Political Economic ` Socio-Cultural Technology Environment Legal • Norwegian • 5th largest oil • Voted #1 by • Biomethane Oslo aims to Privacy Labour Party producer UN • Natural gas be one of the Issues, Import • Jens • energy • Public • Ethanol mix most Duty = 0%, Stoltenberg expensive Transport • Electric environmental MVA = 25%, • Economy popular in hybrid ly sustainable Safety • Favour ranked #24 in large urban capitals in the certificates public the world areas transport as a world. • People means to abandoning combat cars climate change • Fredrik • Economy • Voted #7 by • Hydrogen Ban on petrol EU Directive Reinfeldt ranked #22 UN fueled fleet car in 2025. 2002/58/EC • Centre-Right • Stockholm • 5% surge in • Natural gas Import Duty = Alliance congestion tax Public • Ethanol mix 3.7%, VAT = • Favour scheme Transport • Electric 15%, Safety public hybrid certificates transport Prepared by Magnus Harsem 2686728
  • 31. PESTEL Analysis Political Economic Socio-Cultural Technology Environment Legal • Lars Løkke • Subsidized Voted #16 by Electric busses Over a EU Directive Rasmussen public UN millions 2002/58/ECIim transport cyclists, port Duty = • Liberal networks support public 3.7%, VAT = Party & transit 15%, Safety Conservative certificates People’s Party • Matti • Economy Voted #12 by Trams CO2 conscious Same Vanhanen ranked #33 UN Similar tech as Value-added rest of • Centre Party tax for public Scandinavia Subsidizing PL transport now for first services is now time in 2009 8% instead of 22%. Prepared by Magnus Harsem 2686728
  • 32. Plan of Entry Country Trend in # Public Rank Public GDP Growth Population of # Fire Houses Transport Transport capitol cities Companies #1 Positive 2007 + 4.7% 1.5 million 234 growth: 2008 + 2.7% +0.49% Nationwide 10 + High 2009 - 0.4% growth 10 in capitol #2 Positive 2007 + 4.6% 1.4 million 300 growth: 2008 + 3.7% +2.0 % Nationwide 10 + High 2009 + 2.6% growth 8 in capitol #3 Positive 2007 + 3.2% 1.1 million 241 growth: 2008 + 1.7% +0.24 Nationwide 6+ Medium 2009 -1.2% growth 7 in Capitol #4 Positive 2007 + 5.5% 1 million 788 growth: 2008 + 4.5% +0.38% nationwide 6+ Med-Low 2009 + 0.9% growth 9 in capitol Sources: UNdata June, 2009, UN World Population Prospects, US Census Bureau—International Data Base (IDB), Geohive, fire department websites. Prepared by Magnus Harsem 2686728
  • 33. Market Entry Budget Travel Costs: Two people traveling first year (4 trips) Air ($2,000 each) $12,000 Accommodation Sustenance $ 4,000 Misc. $ 1,000 Total $32,500.00 Marketing Advertising $ 1,000 Promotional material (Demo & CD) $ 800 Trade Show $ 3,500 Application fees for establishing name in EU $ 1,500 Misc. $ 1,000 Total $ 5,800.00 R&D Full cost of mapping license for 4 countries ($3,000 each) $12,000 Total $12,000 Legal Import duties (EU only) 3.7% on $120,000 $ 4,400 MVA (Norway only) 25% on 120,000 could be split * $ 30,000** Total $ 34,000 Budget Total $ 84,800.00** *MVA of 25% tax is placed on any import to be used within the borders of Norway. The Total can be split between buyer and seller (common). **If MVA is split 50/50, the budget total would be closer to $69,800.00 Prepared by Magnus Harsem 2686728
  • 34. Return on Investment Year * 2010 2011 2012 2013 2014 ROI 3.4x 12x 18x 12x 12x 240,000 480,000 720,000 Profit from 4 from 8 from 12 480,000 480,000 (AUD) systems systems systems Costs 70,000 40,000** 40,000** 40,000** 40,000** ROI computed using the formulae ROI = (Income/Cost) as a ratio *Note the first year may experience a break even point, with few sales. ROI Table to be used as an example only, all numbers are samples. **Depending upon sales total - taxes paid will increase costs Prepared by Magnus Harsem 2686728
  • 35. Conclusion Scandinavian Market: Mature Expanding Environment conscious initiatives funded by GOV’s. Safety first mentality Fire : Driver training is private Scandinavia reports very low accidents with their vehicles compared with the likes of the USA. This however, should not deter direct talks and further produce interest to better train and manage Scandinavian fire fighting drivers. Interest from Asker & Bærum Fire Chief Anne Hjort. Public Transport: Due to environmental concerns Vigil could take advantage and market itself as a green company. in Norway, Sweden, & Finland with 2,457+ busses in operation Prepared by Magnus Harsem 2686728
  • 36. Action Plan Strategic Goal Strategy Objective Responsibility Timeline 1. Review Market Make Contact Establishing To Be Announced 25.01.2010 to Research Sweden - Norway Interest & 25.07.2010 Denmark - Finland Qualifying clients 2. Penetrate Business Trip with Establishing TBA 25.01.2010 to Scandinavian Ian Haynes to meet Interest 25.07.2010 Market using US prospective clients & strategy Qualifying clients 3. Consider current If necessary Change Sale of Vigil TBA 01.08.2010 to Plan, adjust Plan: Systems in each 12.12.2010 accordingly Qualify interest in country leasing options 4. Sale of Systems Direct Selling: Sale of 1 System in TBA 10.01.2011 to each country or 10.07.2011 Leasing 2 Prepared by Magnus Harsem 2686728
  • 37. References Thompson, Jamie 2007. Swedish firefighter, researcher schools FRI audience on safety. Fire Rescue Available at: [http://www.firerescue1.com/firefighter- safety/articles/309234-Swedish-firefighter-researcher-schools-FRI-audience-on-safety/] Accessed on September 24, 2009. Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data, O.J. L 281, 23.11.1995. Electronic Privacy Information Centre. Privacy and Human Rights 2005: An International Survey of Privacy Laws and Developments, 2005. About the Data Inspectorate. Available online at [http://www.datatilsynet.no/templates/Page____194.aspx] Accessed October 1 st, 2009. Austrade. 2009 Available online at [http://www.austrade.gov.au/Country/default.aspx] Accessed October 1 st, 2009. Newspapers Norways #1 News Available online at [http://www.aftenposten.no/] Accessed October 1 st, 2009. Swedens #1 News Available online at [http://www.aftonbladet.se/] Accessed October 1 st, 2009. Following rubbish with GPS. 2006 Available Online: [www.lbsinnovasjon.no/lastned.asp?Dokument=aftenposten11mars06] Accessed October 3rd, 2009. EU 1993. Available Online: [http://en.wikipedia.org/wiki/European_union] Accessed October 3rd, 2009. City of Helsinki Rescue Department updates its fire engine fleet: Record number of new vehicles taken into service. 2008 Available Online: [http://www.hs.fi/english/article/City+of+Helsinki+Rescue+Department+updates+its+fire+engine+fleet/1135235618831] Accessed October 3rd, 2009. City of Helsinki Rescue Department Annual Report 2008. Available Online: [http://www.hel.fi/wps/wcm/connect/ab5674004e689a518442b6678a385f98/Toimintakertomus+2008.pdf?MOD=AJPERES&CACHEID=ab5674004e689a518442b6678a385f9 8] Accessed October 3rd, 2009. Global Financial Crisis Hits Norwegian banking Sector. Dec 2008. Available Online: [http://findarticles.com/p/articles/mi_qa5463/is_200812/ai_n31427121/pg_2/?tag=content;col1] Accessed October 3rd, 2009. Bus news and environment. 2008. Available Online: [http://www.icenews.is/index.php/information/bus/] Accessed October 3rd, 2009. International Association of Fire and Rescue Available Online: [http://www.ctif.org/Introduction,25] Accessed October 3rd, 2009. Brushlinsky, N.N., J.R. Hall, S.V. & Sokolov, P. Wagner. 2006. Center of Fire Statistics. Moscow. Available Online: [http://www.ctif.org/IMG/pdf/CTIF_report11_world_fire_statistics_2006-2.pdf] Accessed October 3rd, 2009. [http://www.dos.state.ny.us/fire/loddstats/loddstats.ppt#289,7] Accessed October 8th, 2009. Prepared by Magnus Harsem 2686728
  • 38. References cont. Fire Departments Oslo’s Fire Station Home Page Available Online: [http://www.brann-og-redningsetaten.oslo.kommune.no/om_oss/samarbeid/] Accessed October 3rd, 2009. Copenhagen Fire Department Contact Available Online: [http://www.brand.kk.dk] Accessed October 8th, 2009. Helsinki Rescue Department Available Online: [http://www.hel2.fi/pel/] Accessed October 8th, 2009. Rescue Services in Finland Available Online: [http://www.pelastustoimi.fi/en/in-brief/] Accessed October 8th, 2009. Stockholm Fire Department Unofficial Available Online: [http://www.brandforsvar.se/sthlm.htm] Accessed October 8th, 2009. Ambulance Crash-Related Injuries Among Emergency Medical Services Workers --- United States, 1991—2002. Available Online: [http://www.cdc.gov/mmwr/preview/mmwrhtml/mm5208a3.htm] Accessed October 8th, 2009. US Firefighter Deaths by Type of Duty, 2008 source: USFA. Available Online: [http://www.dos.state.ny.us/fire/loddstats/loddstats.ppt#289,7] Accessed October 8th, 2009. Prices for Drivers Licences comparison in Scandinavia. Aftenposten. Available Online: [http://aftenbladet.no/innenriks/993606/Enorme_prisforskjeller_i_Norge_og_Sverige.html] Accessed October 13th, 2009. Cars registered in Norway 2004. Available Online: [http://www.ssb.no/bilreg/tab-2004-05-04-01.html] Accessed October 8th, 2009. Cars registered in Finland Available Online: [http://tilastokeskus.fi/tup/suoluk//taskue_liikenne.html] Accessed October 8th, 2009. Cars registered in Sweden Available Online: [http://www.scb.se/statistik/TK/TK1001/2004M06/TK1001FORD2.xls] Accessed October 8th, 2009. Cars registered in Denmark Available Online: [http://www.dst.dk/asp2xml/external/external.asp?title=Statistisk%20%C3%85rbog%20side%20353&ancestor=Vejviser&file=/pukora/epub/upload/7423/headword/dk/353.pdf& show=/pdf] Accessed October 8th, 2009. Connex Transport AB Northern Europe Annual Turnover figures from 2004. Available Online: [http://www.connex.info/uploadConnex/ConnexPoland/Broszury%20Firmowe/Connex%20Transport%20AB%20Presentation%20April%202005.pdf] Accessed October 8th, 2009. Prepared by Magnus Harsem 2686728
  • 39. References cont. 2006 Annual Report. Available Online: [http://www.connex.info/tmpl/ExtensionPage____2743.aspx?epslanguage=ML] Accessed October 8th, 2009. IEECE Website for Safety Testing Available Online: [http://www.cbscheme.org/default.html] Accessed October 8th, 2009. Denmark Best Country for Business according to Forbes. Available Online: [http://blogs.cbs.dk/mba_diary/?p=137] Accessed October 8th, 2009. 2008 Investment Climate Statement – Norway Available Online: [http://www.state.gov/e/eeb/ifd/2008/100996.htm] Accessed October 8th, 2009. Prices for Drivers Education – Norway. Available Online: [http://forbrukerportalen.no/Tester/2006/1151654397.81/test_view?expandedtopic:ustring:utf8=1151654397.84#facet] Accessed October 8th, 2009. Information related to total number of fire departments in Norway and Sweden. 2007. Available online: [http://www.mail- archive.com/massfire@googlegroups.com/msg00196.html] Accessed October 29, 2009. Populations by country. 2009 .UNdata June, 2009, Available online: [http://data.un.org/Data.aspx?d=PopDiv&f=variableID%3A12] Accessed October 29, 2009. UN World Population Prospects 2009. Available online: [http://esa.un.org/unpp/] Accessed October 29, 2009. US Census Bureau—International Data Base (IDB) Available online: [http://www.census.gov/ipc/www/idb/] Accessed October 29, 2009. Geohive: Global Statistics. Available online: [http://www.geohive.com/default1.aspx] Accessed October 29, 2009. Prepared by Magnus Harsem 2686728
  • 40. Appendix Fire Stations in Stockholm Brännkyrka brandstation Katarina brandstation Mickelsbergsvägen 1, Tjärhovsgatan 9 125 33 Älvsjö 116 21 Stockholm Tel: +44 08-454 87 00 Tel: 08-454 87 00 Chief Hans Malm: 08-454 88 15 Chief: Pelle Rytterlund: 08-454 88 13 Fax 08-406 86 05 Brandmästare: 08- 454 88 23 Fax: 08-406 86 22 Farsta brandstation Lingvägen 155, Kista brandstation 123 59 Farsta Danmarksgatan 50 Tel: +44 08-454 87 00 164 40 Kista Chief Liisa Honkaranta: 08-454 88 14 Tel: 08-454 87 00 Brandmästare: 08-454 88 24 Chief: Peter Karlsson: 08-454 88 18 Fax: 08-406 86 02 Fax: 08-406 86 13 Johannes brandstation Kungsholmens brandstation Malmskillnadsgatan 64 Kronobergsgatan 2 111 38 Stockholm 112 38 Stockholm Tel: 08-454 87 00 Tel: 08-454 87 00 Fax: 08-454 89 01 Chief: Rolf Grossman: 08-454 88 17 Fax 08-406 86 16 Prepared by Magnus Harsem 2686728
  • 41. Appendix Fire Stations in Stockholm Lidingö brandstation Täby brandstation Vasavägen 62 Nytorpsvägen 3 181 41 Lidingö 183 53 Täby Tel: 08-454 87 00 Chief: Jimmy Haglund Chief: Dan Hallman: 08-454 87 50 Tel: 08-454 87 00 Fax: 08-406 86 29 Fax: 08-792 99 99 Ljusterö brandstation Vallentuna brandstation Ljusterövägen 178 Vallentuna 184 97 LJUSTERÖ Lindholmsvägen 2 Chief: Ulf Widell tel: 08-792 99 61 Chief: Johan Kroon Tel: 08-542 413 09 Tel:08-454 87 00 Fax: 08-542 411 29 Fax: 08-511 762 26 Solna - Sundbyberg brandstation Vaxholms brandstation Ekensbergsvägen 87 Eriksöv 2 169 31 Solna 18534 VAXHOLM Tel: 08-454 87 00 Chief: Ulf Widell Chief: Johan Berg: 08-454 88 69 Tel: 08-454 87 00 Fax: 08-454 89 63 Fax: 541 302 95 Prepared by Magnus Harsem 2686728
  • 42. Appendix Fire Stations in Stockholm Vällingby brandstation Östermalms brandstation Krossgatan 4-8, Artillerigatan 69, 162 50 Vällingby 114 45 Stockholm Tel: 08-454 87 00 Tel: 08-454 87 00 Chief: Claes Looft: 08-454 88 19 Chief: Ulf Appel: 08-454 88 12 Fax: 08-406 86 19 Fax: 08-406 86 09 Fax: 08-406 86 08 Värmdö brandstation Fenix väg 1 134 81 GUSTAVSBERG Chief: Tenny Sundh Tel: 08-454 87 00 Fax: 08-570 323 36 Åkersberga brandstation Stationsvägen 12 18450 ÅKERSBERGA Chief: Ulf Widell Vxl: 08-454 87 00 Telefon direkt: 08-792 99 60 Fax: 08-540 672 80 Prepared by Magnus Harsem 2686728
  • 43. Appendix Fire Stations in Oslo Stasjon 1 Stasjon 2 Briskeby brannstasjon Smestad brannstasjon Industrigata 1-3 Ullernchausseen 26 Tel +47 23 46 96 30 Tel +47 23 46 96 40 Stasjon 3 Stasjon 5 Sagene brannstasjon Grorud brannstasjon Sandakerveien 58 A Fossumveien 75 Tel +47 22 89 38 20 Tel +47 22 78 99 90 Stasjon 6 Stasjon 7 Bryn brannstasjon Havnestasjonen Tvetenveien 18 Tel +47 22 88 13 40 Stasjon 9 : Headquarters and main fire station Stasjon 8 Fire Chief: Jon Myroldhaug Arne Garborgs plass 1, 0179 Ekebergveien 174 Tel +47 02 180 Prepared by Magnus Harsem 2686728
  • 44. Appendix Fire Stations in Copenhagen Tomsgårdens Brandstation / Team STT (Ambulatory) Dæmningens Brandstation Frederikssundsvej 83 B Hansstedvej 7 2400 København NV 2500 Valby Fire Chief: Nils Lyng Fire Chief: Ole Nielsen tlf.: 3366 1855 Mobil.: 2686 7002 Tlf. 3366 1900. Mobil: 2688 2995 E-mail: nillyn@okf.kk.dk E-mail: oniels@okf.kk.dk Stations secretary: Tabitha Daric-Schøtt Tel:: 3366 1856 - 3366 1870 Vesterbro Brandstation E-mail: tabdar@okf.kk.dk Enghavevej 168-170 2450 København SV Østerbro Brandstation Fire Chief: Ole Gammelby Østbanegade 89 tlf.: 3366 1950. mobil: 26864861 2100 København Ø E-mail: olegam@okf.kk.dk Fire Chief Nils Lyng Stations secretary Marianne Børgesen tlf.: 3366 4865 Mobil: 2686 7002 E-mail: mahans@okf.kk.dk E-mail: nillyn@okf.kk.dk tlf.: 3366 1951. tlf.nr.: 33662996 Stations secretary Tabitha Daric-Schjøtt E-mail: tabdar@okf.kk.dk Christianshavns Brandstation Markmandsgade 15 Fælledvej Brandstation 2300 København S Fælledvej 20 A Fire Chief Ole Gammelby 2200 København N tlf.: 2686 4861 Fire Chief: Ole Nielsen E-mail: olegam@okf.kk.dk Tlf. 3366 4862. Mobil: 2688 2995 Stations secretary Marianne Børgesen E-mail: oniels@okf.kk.dk E-mail: mahans@okf.kk.dk Stations secretary Marianne Børgesen Tel.: +44 3366 2996 E-mail: mahans@okf.kk.dk Tlf. 3366 2996 Source: In English http://www.brand.kk.dk/neobuilder.php?id=200201281526119000000030347 Prepared by Magnus Harsem 2686728
  • 45. Appendix Fire Stations in Helsinki Erottaja Rescue Station (station 2) Mellunkylä Rescue Station (station 6) Korkeavuorenkatu 26 Linnanpajantie 6 FI-00130 HELSINKI FI-00950 HELSINKI Haaga Rescue Station (station 3) Herttoniemi Rescue Station (station 7) Vanha Turunmaantie 2 Sorvaajankatu 16 FI-00300 HELSINKI FI-00810 HELSINKI Käpylä Rescue Station (station 4) Suomenlinna Rescue Station Kullervonkatu 7 Suomenlinna FI-00600 HELSINKI FI-00190 HELSINKI Malmi Rescue Station (station 5) Helsinki Rescue Station (1) Malmi Airport Headquarters and main fire station FI-00700 HELSINKI Steniuksentie 14 FI-00320 HELSINKI Prepared by Magnus Harsem 2686728
  • 46. Appendix Company Addresses Veolia Transport Sweden Allen 6A, Syndbyberg 171 24 Solna Concordia Buss Nordic AB Swebus AB Armegatan 38 17171 Solna, Stockholm Keolis Nordic AB Busslink Sjöviksbacken 24 117 43 Stockholm Slussplatsen 1, Göteborg Göteborgs Spårvägar AB Hållplats Drottningtorget S- 401 26 GÖTEBORG Prepared by Magnus Harsem 2686728
  • 47. Appendix Company Addresses Klubbgaten1 4013 Stavanger Møllendalsveien 1A, 5009 Bergen Skippergaten 31, 4 floor Konsernstaben, 0048 Oslo Storoveien 25 Oslotrikken AS 0048, Oslo Prepared by Magnus Harsem 2686728
  • 48. Appendix Company Addresses Arriva Group (UK) Arriva Denmark Skøjtevej 26 DK-2770 Kastrup Møllendalsveien 1A, 5009 Bergen Norway Malervangen 9 2600 Glostrup City Trafik A/S Naverland 20 2600 Glostrup Prepared by Magnus Harsem 2686728
  • 49. Appendix Company Addresses Pohjolan Liikenne AB Postintaival 3 00240 HELSINKI Savonlinja AB Otavankatu 23, P.0.Box 400, FI-50101 Mikkeli Concordia Buss Nordic AB Hallinto Klovinpellontie 5 02180 Espoo Veolia Transport Connex Finland Oy Laurinmaenkuja 3B FI-00440 Helsinki Prepared by Magnus Harsem 2686728
  • 50. Appendix Prepared by Magnus Harsem 2686728
  • 51. Appendix Prepared by Magnus Harsem 2686728