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Market Research and Entry Strategy for Box Ambulances

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Market Research and Entry Strategy for Box Ambulances THESIS – BACHELOR’S DEGREE PROGRAMME TECHNOLOGY, COMMUNICATION AND TRANSPORT MARKET RESEARCH AND ENTRY STRATEGY FOR BOX AMBULANCES Public version report A u t h o r : Sanne van Leeuwen D a t e : Thursday, 06 June 2019 L o c a t i o n : Iisalmi, Finland 2 (70) 3 (70) Field of Study Technology, Communication and Transport Degree Programme Degree Programme in Mechanical Engineering Author: Sanne van Leeuwen [email protected] +31 6 22 103 711 Title of Thesis: Market research and entry strategy for box ambulances Date 26.04.2019 Pages 72 Supervisor Savonia: Supervisor Windesheim Jarmo Pyysalo Paul Touw [email protected] [email protected] +358 44 785 6781 +31 88 469 7793 Client Organization/Partners: Profile Oy Seppo Hatunen [email protected] +358 40 830 7784 Abstract This report is the result of the market research for Profile Oy. In this report the ambulance industry and various European markets were researched. From this research three countries were chosen for which entry strategies were written. Some applied theories are eight dimensions of quality by Garvin, entry modes by Kotler, Armstrong, Wong and Saunders and entry barriers by Bain. In the report the European ambulance industry was carefully researched. Types of ambulances, regulations, box versus van ambulances, decision makers and manufacturers were all covered to gain a full understanding of the working of the industry. Then for each market a market research was completed to determine whether there are possibilities for Profile to enter the market with box ambulances. With the help of a decision matrix, it was defined that Germany, Norway and Sweden have the markets that are the most viable options. This is because Germany is a market which proves to have a high demand for box ambulances and Profile al- ready is a market leader in Norway and Sweden. In these countries customers already have asked after box am- bulances. For these three markets entry strategies were written. In this strategy the barriers, cost and competi- tiveness, network and marketing possibilities were discussed. It was determined that direct exporting will be the best option for now. In the future when the demand grows the next step, such as a wholly owned subsidiary, should be evaluated. There are opportunities in the three selected markets. However, it will require work, time and investments to make it a profitable outcome. Keywords Market research, Ambulances, Emergency Medical Care, Profile Oy, Entry strategy, Germany, Sweden, Norway, Belgium, the Netherlands, Finland, Luxembourg, United Kingdom, Denmark 4 (70) PREFACE This is the thesis report ‘market research and entry strategy for the box ambulances’ which I have written for the company Profile Oy. In this report I research the ambulance industry and the markets in west and north Europe for box ambulances, followed by an entry strategy for the three most viable markets. This report is the final product for my Bachelors’ Double Degree in Industrial Engineering and Management from Windesheim and Mechanical Engineering and Production Technology from Savonia. I was engaged in researching and writing this thesis from January to April 2019. The research is done at the request of Profile Oy where I did my thesis. My research questions were formed together with my company supervisor Seppo Hatunen. The goal of the research was to find the markets in which the box ambulance would be a viable option to enter. I would like to thank my school supervisors Jarmo Pyysalo and Paul Touw for their help and guidance during the process of finding and writing my thesis. I would like to thank Profile Oy for the given op- portunities, in special my supervisor Seppo Hatunen, the sales managers and other colleagues who helped me. Lastly, I would like to thank all the respondents who helped me map the markets. Without all these people’s help this research would not have been of the quality it is now. Iisalmi, Thursday, June 6, 2019 5 (70) TABLE OF CONTENTS 1 INTRODUCTION ................................................................................................................ 7 1.1 Need and purpose of this research ............................................................................................ 7 1.2 Research topics ........................................................................................................................ 7 1.3 Confidential material ................................................................................................................. 8 1.4 Scope ...................................................................................................................................... 8 1.5 Strategic and operational risks ................................................................................................... 8 2 APPLIED THEORIES ........................................................................................................... 9 2.1 Marketing strategies ................................................................................................................. 9 2.2 Market research ....................................................................................................................... 9 2.3 Defining quality ....................................................................................................................... 10 2.4 Decision making ...................................................................................................................... 10 2.5 Entry modes ............................................................................................................................ 11 2.6 Entry barriers .......................................................................................................................... 12 3 METHODOLOGY .............................................................................................................. 14 3.1 Study steps ............................................................................................................................. 14 3.2 Research strategy .................................................................................................................... 15 3.3 Phasing ................................................................................................................................... 15 3.4 Justification for using qualitative research ................................................................................. 15 3.5 Justification for using interviews ............................................................................................... 16 3.6 Data collection process ............................................................................................................ 16 3.7 Data analysis process............................................................................................................... 16 4 THE AMBULANCE INDUSTRY ............................................................................................ 17 4.1 Types of ambulances ............................................................................................................... 17 4.2 <3.5t and >3.5t markets ......................................................................................................... 19 4.3 Regulations ............................................................................................................................. 19 4.4 Box vs van ambulances ............................................................................................................ 21 4.5 Customers view on Box ambulances ......................................................................................... 22 4.6 Decision makers ...................................................................................................................... 23 4.7 Ambulance manufacturers ........................................................................................................ 24 5 MARKETS RESEARCH ....................................................................................................... 25 5.1 Denmark ................................................................................................................................. 26 6 (70) 5.2 Germany ................................................................................................................................. 28 5.3 The Netherlands ...................................................................................................................... 31 5.4 Belgium .................................................................................................................................. 34 5.5 Luxembourg ............................................................................................................................ 36 5.6 Norway ................................................................................................................................... 38 5.7 Sweden ................................................................................................................................... 39 5.8 Finland .................................................................................................................................... 41 5.9 United Kingdom ....................................................................................................................... 42 5.10 Biggest competitors ................................................................................................................
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