Monday, May 11, 2009

COMPETITIVE INTELLIGENCE!

Competitive intelligence is a systematic and ethical program for gathering, analyzing, and managing external information that can be implemented as your company’s plans, decisions, and operations. But competitive intelligence can also be expressed as Industrial Espionage. Industrial espionage is essentially a form of commercial intelligence gathering, usually, but not exclusively, on the part of industry competitors. With global competition intensifying, finding out about rivals’ products and processes has become big business – and competitive intelligence gathering is increasingly seen as an important and largely acceptable form of market research. Now engaging an industry partner is highly beneficial. Intelligence partners are engaged to provide requirement specific information regarding the industry and competitors. Even random pieces of information can be fed into a competitive intelligence process. News that a competitor's distributor is renting a new warehouse can mean that shipments to the region may be going up possibly as a prelude to a sales promotion .
More than getting information from various intelligence compaines it is important that it is used and this is what Beroe does. Beroe acts as an extension of the client's procurement team by providing actionable and customized research.

EMERGING MARKETS

The U.S. Department of Commerce estimates that over 75% of the expected growth in world trade over the next two decades will come from the more than 130 developing and low cost countries. Big emerging markets share a number of important traits
a. Have a significant population
b. Are all physically large
c. Represent considerable markets for a wide range of products
d. Have strong rates of growth or the potential for significant growth
e. Are of major political importance within their regions
f. Are “regional economic drivers”
g. Will engender further expansions in neighboring markets as they grow
Because many of these countries lack modern infrastructure, much of the expected growth will be in the industrial sectors.
Some of the emerging markets are China, India, South Korea, Vietnam in Asia Pacific, Argentina, Brazil, Mexico, Venezuela, Colombia in Latin America, Poland, Turkey, Romania in Europe and South Africa in Africa.

Beroe has a presence in many of the emerging markets world wide and we will act as your procurement arm from ground zero.

Sunday, May 10, 2009

GLOBAL ETHANOL INDUSTRY

Across the world, USA is the largest ethanol producing country with a contribution of 39% to the global production. Brazil comes second, with a contribution of 31% to global production. However, despite Brazil’s second position, its ethanol industry is more prosperous than US corn-based ethanol industry due to appropriate, cheaper, and efficient feedstock (sugarcane) selection. The basic cause for the ailing condition of the US ethanol industry during 2008 was the skyrocketing corn price that touched USD 7 per bushel, which drastically reduced producers’ profitability even after the incentives and subsidies provided by the US Government. US charges import tariff of around 40-55% on Brazilian ethanol to make Brazilian's ethanol price competitive with US ethanol, which indicates the incompetence and ineffectiveness of the US ethanol industry. The price of corn is expected to drop by almost 14.5% from the baseline level and the loss of demand subsidies would cause the price of ethanol to drop by 18.6%. The fuel price is expected to increase by 0.2%; domestic ethanol production would drop by 11.5%; ethanol imports would increase by 28.1%; total gasoline supply would increase by 0.5%; and total fuel demand would remain almost unchanged from baseline levels. On average, 82% of ethanol plants would be operating in this scenario. The average net welfare gain from removing all ethanol policies would be USD 5.8 billion. The expected producer surplus of the biggest winner, gasoline suppliers, would increase by USD 5.05 billion. Average government revenue would increase by USD 4.9 billion. Corn growers and ethanol producers would lose USD 9.4 billion and USD 2.65 billion in average producer surplus, respectively.