Analysis of Factors Related to Market Entry in South Africa (760 words)

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Question

Please provide a referenced write-up analyzing BRICS country (South Africa) with respect to the country conditions of political, economic, financial, business and regulatory environments. If you find anything directly relating to alternative energy in your country, add that too. It should look like your best argument for partnering or buying a solar energy company in your country, with important things we should be aware of.

Our team has selected the Alternative Energy Industry, with a focus on solar energy.

The company we chose is NextEra Energy Resources, which specializes in clean energy, where solar power makes up a small percentage, but still one of the largest in US.

We're strongly considering expanding solar energy into China.

O’Neill (2009) proposed that Brazil, Russia, India and China would eventually become a larger part of the global economy, with China overtaking the US economy by 2050. He also posits that world energy demand will rise over the next decade by 2.5% per year, with energy process remaining strong throughout this period.

Zhu claims that China’s economy has demonstrated large growth that will moderately slow from 2012-2013, with 8-9% GDP growth during this time. In order to sustain economic growth, China must balance growth towards domestic consumption, phase out government control of commodity pricing and support private and small to medium sized enterprises while phasing out large government controlled enterprises.

Both of these reports support the concept of a strategic partnership with a Chinese company that produces solar energy. With continued economic growth and increased energy consumption, coupled with a governmental desire to reduce pollution and support domestic corporations, the alternative energy industry in general and solar energy in particular are likely to become successful ventures.

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Analysis of Factors Related to Market Entry in South Africa
Policy
According to the Economist Intelligence Unit (2013, South Africa: Summary fact sheet), South Africa still faces social issues of economic inequity it has not resolved since the apartheid era. Fixing imbalances in opportunity between white and black citizens, including an emphasis on black economic empowerment, are critical to make South Africa a first-world economy. Due to the quick integration after apartheid, high unemployment is endemic, but the problem is slowly correcting itself as a black middle-class is finally starting to emerge....

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