Current Industry Landscape:
According to the Exhibit 5, today China is the world’s largest car manufacturer responsible for 26% of total production. Kenya is on the opposite end with only 3,080 cars being produced annually. China, India and Kenya are comparable in terms of labor costs. If GM facilitates production in Kenya, then it would have an easy access to the resources and cheap labor; while in China and India it would have to compete for the same resources with a large number of domestic and foreign manufacturers. Next, vehicle penetration in Kenya stands at only about 24 vehicles per 1,000 people, compared with about 600 vehicles in the mature markets such as Germany and Canada. This means that the mature markets are overly saturated, …show more content…
One of the partnerships “has helped to make the country’s airline one of the top three carriers in SubSaharan Africa. Jomo Kenyatta International.’ Hence, Kenya became one of the largest international hubs in the area and one of the most easily accessible geographical locations in the East African landscape.
The formation and development of road systems funding makes FDI into Kenya a very attractive endeavor. According to Micahel Kamau, Kenya’s Minister of Transport, the government is going to fund a variety of railroad improvement projects within the next few years. This will be a major boost to linking major ports, providing much needed capacity for freight and freeing road congestion. Kenya is becoming one of the major links for the Northern corridor in Africa.(Exhibit 2)
2.) Competitors:
Germany in comparison to Kenya has a much more extensive transportation system: developed roads, punctual railroad systems, reliable equipment and highly trained force. Although, according to M. Brinmaun, “the country’s famed infrastructure is starting to crumble”. Its bridges, railroads as well as the equipment have not been maintained or updated properly in a long …show more content…
Due to accelerated growth in the economy major renovations are going to be needed in order to keep up. The country lacks reliable a railroad system to transport freight. The transportation system is getting revamped in certain areas in anticipation of the Olympic Games 2016. Specifically, the airports renovations and high-speed railroads are taking place.
The transportation costs in Mexico are 20% higher than in the U.S and Canada. GDP increase contribution by infrastructure development is only 0.3%, compared to 0.5% in Kenya. Even though the president Calderon announced in 2007 that there would be major capital injections in the transportation sector, there is a still a lot of work to be done.
According to the World Bank report, there were five major transportation infrastructure projects undertaken in Indonesia in the past decades. As result of focusing on solely physical completion of the projects, while paying no attention to political and institutional climate in the country – the projects had “very modest” overall institutional impact.
3.)
According to the Exhibit 5, today China is the world’s largest car manufacturer responsible for 26% of total production. Kenya is on the opposite end with only 3,080 cars being produced annually. China, India and Kenya are comparable in terms of labor costs. If GM facilitates production in Kenya, then it would have an easy access to the resources and cheap labor; while in China and India it would have to compete for the same resources with a large number of domestic and foreign manufacturers. Next, vehicle penetration in Kenya stands at only about 24 vehicles per 1,000 people, compared with about 600 vehicles in the mature markets such as Germany and Canada. This means that the mature markets are overly saturated, …show more content…
One of the partnerships “has helped to make the country’s airline one of the top three carriers in SubSaharan Africa. Jomo Kenyatta International.’ Hence, Kenya became one of the largest international hubs in the area and one of the most easily accessible geographical locations in the East African landscape.
The formation and development of road systems funding makes FDI into Kenya a very attractive endeavor. According to Micahel Kamau, Kenya’s Minister of Transport, the government is going to fund a variety of railroad improvement projects within the next few years. This will be a major boost to linking major ports, providing much needed capacity for freight and freeing road congestion. Kenya is becoming one of the major links for the Northern corridor in Africa.(Exhibit 2)
2.) Competitors:
Germany in comparison to Kenya has a much more extensive transportation system: developed roads, punctual railroad systems, reliable equipment and highly trained force. Although, according to M. Brinmaun, “the country’s famed infrastructure is starting to crumble”. Its bridges, railroads as well as the equipment have not been maintained or updated properly in a long …show more content…
Due to accelerated growth in the economy major renovations are going to be needed in order to keep up. The country lacks reliable a railroad system to transport freight. The transportation system is getting revamped in certain areas in anticipation of the Olympic Games 2016. Specifically, the airports renovations and high-speed railroads are taking place.
The transportation costs in Mexico are 20% higher than in the U.S and Canada. GDP increase contribution by infrastructure development is only 0.3%, compared to 0.5% in Kenya. Even though the president Calderon announced in 2007 that there would be major capital injections in the transportation sector, there is a still a lot of work to be done.
According to the World Bank report, there were five major transportation infrastructure projects undertaken in Indonesia in the past decades. As result of focusing on solely physical completion of the projects, while paying no attention to political and institutional climate in the country – the projects had “very modest” overall institutional impact.
3.)