Renewable Energy Equipment and Services in Bulgaria : A Strategic Reference, 2007

The primary audience for this report is managers involved with the highest levels of the strategic planning process and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning relating to renewable energy equipment and services in Bulgaria. As the editor of this report, I am drawing on a methodology developed at INSEAD, an international business school (www.insead.edu). For any given industry or sector, including renewable energy equipment and services, the methodology decomposes a country’s strategic potential along four key dimensions: (1) latent demand, (2) micro-accessibility, (3) proxy operating pro-forma financials, and (4) macro-accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. With this perspective, this report provides both a micro and a macro strategic profile of renewable energy equipment and services in Bulgaria. It does so by compiling published information that directly relates to latent demand and accessibility, either at the micro or macro level. The reader new to Bulgaria can quickly understand where Bulgaria fits into a firm’s strategic perspective. In Chapter 2, the report investigates latent demand and micro-accessibility for renewable energy equipment and services in Bulgaria. In Chapters 3 and 4, the report covers proxy operating pro-forma financials and macro-accessibility in Bulgaria. Macro-accessibility is a general evaluation of investment and business conditions in Bulgaria. Cover Contents 1 INTRODUCTION & METHODOLOGY 1.1 WHAT DOES THIS REPORT COVER? 1.2 HOW TO STRATEGICALLY EVALUATE BULGARIA 1.3 LATENT DEMAND AND ACCESSIBILITY IN BULGARIA 2 RENEWABLE ENERGY EQUIPMENT AND SERVICES IN BULGARIA 2.1 LATENT DEMAND AND ACCESSIBILITY: BACKGROUND 2.2 LATENT DEMAND: MARKET COMPOSITION 2.3 LATENT DEMAND: DYNAMICS 2.3.1 GDP Growth 2.3.2 Access to Credit 2.4 LATENT DEMAND: LEADING SEGMENTS LATENT DEMAND: STATISTICAL DATA 2.6 ACCESSIBILITY: THE STRUCTURE OF COMPETITION 2.7 END USERS 2.7.1 U.S. Equipment and Technologies 2.7.2 Energy Efficiency Industry 2.8 MARKET ISSUES AND OBSTACLES 2.8.1 Tariff Barriers 2.8.2 Non-Tariff Barriers 3 FINANCIAL INDICATORS: STEAM, GAS AND HYDRAULIC TURBINES AND TURBINE GENERATOR SET UNITS 3.1 OVERVIEW 3.1.1 Financial Returns and Gaps in Bulgaria 3.1.2 Labor Productivity Gaps in Bulgaria 3.1.3 Limitations and Extensions 3.2 FINANCIAL RETURNS IN BULGARIA: ASSET STRUCTURE RATIOS 3.2.1 Overview 3.2.2 Assets Definitions of Terms 3.2.3 Asset Structure: Outlook 3.2.4 Large Variances: Assets 3.2.5 Key Percentiles and Rankings 3.3 FINANCIAL RETURNS IN BULGARIA: LIABILITY STRUCTURE RATIOS 3.3.1 Overview 3.3.2 Liabilities and Equity Definitions of Terms 3.3.3 Liability Structure: Outlook 3.3.4 Large Variances: Liabilities 3.3.5 Key Percentiles and Rankings 3.4 FINANCIAL RETURNS IN BULGARIA: INCOME STRUCTURE RATIOS 3.4.1 Overview 3.4.2 Income Statements Definitions of Terms 3.4.3 Income Structure: Outlook 3.4.4 Large Variances: Income 3.4.5 Key Percentiles and Rankings 3.5 FINANCIAL RETURNS IN BULGARIA: PROFITABILITY RATIOS 3.5.1 Overview 3.5.2 Ratios Definitions of Terms 3.5.3 Ratio Structure: Outlook 3.5.4 Large Variances: Ratios 3.5.5 Key Percentiles and Rankings 3.6 PRODUCTIVITY IN BULGARIA: ASSET-LABOR RATIOS 3.6.1 Overview 3.6.2 Asset to Labor: Outlook 3.6.3 Asset to Labor: International Gaps 3.6.4 Key Percentiles and Rankings 3.7 PRODUCTIVITY IN BULGARIA: LIABILITY-LABOR RATIOS 3.7.1 Overview 3.7.2 Liability to Labor: Outlook 3.7.3 Liability and Equity to Labor: International Gaps 3.7.4 Key Percentiles and Rankings 3.8 PRODUCTIVITY IN BULGARIA: INCOME-LABOR RATIOS 3.8.1 Overview 3.8.2 Income to Labor: Outlook 3.8.3 Income to Labor: Gaps 3.8.4 Key Percentiles and Rankings 4 MACRO-ACCESSIBILITY IN BULGARIA 4.1 EXECUTIVE SUMMARY 4.2 POLITICAL RISKS 4.2.1 Economic Relationship with the United States 4.2.2 The Political System 4.3 MARKETING STRATEGIES 4.3.1 Creating a Sales Office 4.3.2 Creating a Joint Venture 4.3.3 Agents and Distributors 4.3.4 Hiring Local Counsel 4.3.5 Checking Bona Fides 4.3.6 Distribution Channel Options 4.3.7 Franchising Activities 4.3.8 Direct Marketing Options 4.3.9 Selling Strategies 4.3.10 Product Pricing 4.3.11 Licensing Options 4.3.12 Advertising and Trade Promotion 4.3.13 Trade Promotion 4.3.14 Government Procurement 4.4 IMPORT AND EXPORT REGULATION RISKS 4.4.1 Adherence to Free Trade Agreements 4.4.2 Trade Barrier Risks 4.4.3 Restrictions on Imports. Title from PDF cover (viewed on Oct. 4, 2007).