WHY KODAK SHOULD LOCATE IN IRELAND

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WHY KODAK SHOULD LOCATE IN IRELAND

• Team members
• Liu Zongyao Jia Longwei
• Zhang Xiaoxue Jia wei
• Liu Yanping Liu Xiangyang
• Zhou Dijing

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Executive Summary

• FDI in the past
• Globalisation
• Productivity free move in Europe
• Europe as consumer market
• Benefit from FDI

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KODAK in Europe

• Focus on the Europe market
• Develop new products and service
• Form service net all over Europe

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Influence Factors
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Why Ireland

• A platform for success
• A way to Europe market
• An incentive package service
• An international net work

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Overview Ireland

• Political
• Social
• Economy
• Technology

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Political

• Two jurisdictions
• The first wave to join the EMU

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Social

• Population
• 3.6 million people
• the youngest population in Europe
• Language
• English is the official language

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Economy

• A remarkably strong economy in the 1990s
• The economy grew last year by 8.5
• Over three quarters of national output are
  exports.

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Technology

• Information technologically based
• The second largest exporter of software
• Leading high technology companies in Ireland

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What can do IDA for you?

• IDA Ireland has national responsibility for
  securing new investment in manufacturing and
  international service sectors. (IDA, 2000)

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Objectives of IDA

• Encouraging expansion of existing investors
• Convincing investors in manufacturing
  internationally traded services
• Fostering objective of regional industrial
  development

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What have done by IDA

• 1,200 companies, employing 116,000 people,
  additional 15,000 people are on
• a temporary or contract basis.

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Functions of IDA

• Capital Grants
• Employment Grants
• R D
• Training
• Other Factors

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Republic of Ireland The Home Base for Kodaks
Strategy and Competitive Advantages
Firm Strategy, Structure and Rivalry
Factor Conditions
Demand Conditions
Related and Supporting Industries
Determinations of National Competitive Advantage
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Factor Conditions The Infrastructures

• Telecommunications Infrastructure

• RD Infrastructure

• The Educational System

• Labour Market

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Firms Strategy, Structure, and Rivalry

• Multinational Management Practise

• American management culture

• Be with your peers

• Be with your strategic partners

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Demand Conditions

• Home demand
• .
• International demand
• Buyer sophistication.

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Related and Supporting Industries
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Educational System meets the needs of a
competitive economy
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Government incentive

• Proactive Government Strategies
• Development of a set of policies for 25 years
• Ambitious strategy of industrial development
• Resources valuable to high-tech industries.

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Government incentive

• Fiscal Incentives
• High tax rate to a generous social welfare system
• Low Corporation Tax rates - 10 special rate
• Extensive double taxation agreements
• Accelerated depreciation allowances to buildings
  and machinery

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Government incentive

• Subsidies for RD
• Provide incentives to locate research facilities
  
• Low Cost Capital
• low cost facilities immediately available

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Government incentive

• No restrictions on repatriation of profits
• No restrictions on capital flows
• Shannon Duty Free Processing Zone

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Chance

• Technological Revolution Internet
• Political Stability
• Strong Economy

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The Future

• The future of FDI
• Strategy of IDA

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The future of FDI

• Main competitors
• ---USA,Japan Developed EuropeanCentral and
  Eastern EuropeanSouth-East Asia
• Main growth sectors
• --- Electronics, pharmaceuticals,
  telecommunications and biotechnology
• Main form
• --- Joint ventures and alliances with strong
  local firms
• .

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Strategy of IDA

• Policy
• Cluster strategy Incentive Package
• Key support
• Competitive Cost Base Education and Training
• Promoting international trade and market
• Market-Driven State Support European and
  Other Markets

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Conclusion

• ROI --- active and competitive
• Kodak strategy --- IDA strategy
• Kodak --- ROI---Europe
• Win-Win strategy

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What MNCs says

• 'The low cost way to support European customers
  from a single site. This enables overheads,
  inventory and accommodation costs to be
  minimised. Dell pioneered the trend by
  centralising European logistics and customer
  support in Ireland, which offers one of the
  lowest cost and most flexible working
  environments in Europe'.
• Michael Dell President Chief Executive
• Dell Computers

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• Thanks you!