Introduction
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Company Background

LeanEco was founded in December 2007 by Klaus Moth. The founder has a background in both market and technology gained from his positions as research director for a global UPS supplier 2000-2007, following 10 years as VP, R&D in a global company offering high-reliability power electronics for launchers and satellites.

LeanEco offers cost-effective, sustainable, 24/7 Mission Critical Power Solutions for server farms, datacenters and other business critical applications. LeanEco develops, manufactures and sells an innovative, all-in-one no -break power solution.
Mission /Securing Business Uptime.
Vision/ LeanEco the obvious choice.
Problem Statement

LeanEco wants to expand to other markets to establish a great business and to differentiate from the competitors.

The two main markets in Europe for UPS are Germany and UK. They counted for 18% and 22% looking at the total European market. (source: Henrik Raunkjær, CEO). Is the German market Attractive to LeanEco?

Limitation
The Leaneco is interesting firm, but getting the access information is not easy to find.
During the presentation the Ceo Henrik Raunkjær only give brief information & the lecture is so quick that can’t even enough to write down (taking notes). Leaneco website is not enough information to support this project.

Porters Diamond of National Advantage (Denmark)

1. Factor Conditions

The basic factors that the Denmark is no. 6 in the infrastructure in the Competitiveness Yearbook. The technological infrastructure is high and when it comes to education Denmark is marked as no. 1 University and management education that encounter of a competitive economy and the business community.

The Danish labour market The salaries has been reinforced by effective exchange rate .
Key features of the Danish Labour market: • Competitive overall labour cost level • Very flexible labour market • Highly motivated and productive workforce • Low frequency of strike
However the demand for labour is not that strong during the crisis there is still a need to raise labour supply in the future. The Danes probably cannot fulfil & it may therefore be necessary to attract foreign highly skilled labour. The current crisis has made it harder to lend money and the credit conditions in Denmark are tight at the moment (OECD, 2009).

The Danish workforce
It is perceived as highly motivated by foreign companies operating in Denmark. Danish employees are characterised as being healthy self-critical with a will to learn and commitment to improvement.

2. Demand Conditions
The demand is that Denmark lead to be competitive. The Danish markets tend to be relatively demanding & quality-conscious. This can display more motivation to the companies to meet high standards products to innovate, (Porter, 2008).

It is hard to say whether the demand conditions in Denmark create a good environment for businesses. It will be highly dependent on the specific business area. The Danish companies control one-third of the global wind market approx. 20 percent of the Danish electricity is produced from wind power. Denmark is among the first to exploit 2nd generation biofuels on a commercially viable basis and is a world leader in energy efficiency, obtaining more GDP per watt than any other member of the E.U.

3. Related and Supporting Industries
With its competent Denmark will eventually & give focus to a good conditions and this could also be an indicator for a high level of related and supporting industries.
The continued experiencing growth because of the skilful & visionary companies in Denmark that will pursue the innovation of designing new technology and products.

4. Firm Strategy, Structure and Rivalry
Denmark shows the most motivated in the world with high employee satisfaction. Denmark hosts some of the world’s largest wind turbine manufacturers such as Vestas Wind Systems.
It is vital to know the rights & forms of governance are developed on the Danish labour market both trade unions and employers’ associations are important players.

The Danish labor market is special because there are agreements & is negotiated between the unions & the employer associations. These agreements largely replace actual legislation concerning wages and labor conditions, and almost 80% of the Danish labor market is subject to the collective agreements. The agreements help ensure a peaceful and stable labor market.

The “flexicurity” model is an advantage for the Danish labour market and the business environment. “Flexicurity” refers to the flexible Danish labour market and the high level of social security. Danish firms, mostly more flat and organic that will lead to advantages within industries such as biochemical, design.

Chance
The factor that influences the country is the development and competitiveness.
Denmark is watchful to the possible technological update and several changes, such as : the currency rates.

PORTERS FIVE FORCES ANALYSIS
Porter statement. “Market shares are gained when the forces are taken into account in strategic planning.”

1. Threat of New Entrants There are some important sources of barriers to new entry: • Economies of scale • Government regulation

There is always a threat of another new entrant launching a similar product. The key here is to keep research up-to-date and analyse both the macro and microenvironment. It is important to stay ahead of competition or at least maintaining the same competitiveness. A valuable technological this know-how could be hard for new entrants to acquire. High barriers to entry

Regulations and rules
The government or unions and other legislators can play a huge role regarding the height of the barrier to entry by new corporations.
Germany is able using globalization of productions process. Since 1990s is the share of importer input to export sector increase important. The most important export products today is machine and trucks and parts as well as chemical plants.
The german government get this new concept to provide global tender this are the following: ✓ Technologically

✓ Economically

✓ Ecologically

✓ Socially

Chancellor “Angela Merkel” has set itself the goal to Germany worldwide to be a leader in environmental and energy.

2. Bargaining Power of Supplies
The Company has its own uniqueness of their product, service and control. In Germany there are few supplier. However, The German industry has increased its competitiveness considerably in the recent years and has maintained and expanded its leading market position on the German, European and international markets.
The largest wind farm and solar power capacity in the world is installed in Germany.

3. Threat of Substitute
The Supply is a unique product, which is been, offer, there is no substitution. 4. Bargaining Powers of Buyers
The group of buyers consists of business-to-business. German demand low prices & high quality. Foreign investors appreciate Germany as a location for manufacturing, research and development and establishing their company headquarters, even during the crisis year of 2009, Germany has maintained an international reputation as an investment destination. Germany ranks in fifth place of the world's most attractive investment places (behind the United States, China, United Kingdom and India).

5. Competitive Rivalry within the Industry
It is important to consider in this price competition, such as Potential growth on the market can be a sign of a strong factor for new entrants and continuous competition within the industry to keep and win market shares. The industry consists of several small to medium sized companies.

German becomes a price-sensitive what was been before for the reasoned of the country’s recession. This is to be seen in demand for lower prices, but still look a high quality offer of the products. This is why it is very important to find the best strategy for entering the market.

PESTEL ANALYSIS
We have chosen Pestel for the reasoned of political, economic, social, technological, environment and legal factors which of a paramount of importance in this context.

Political Factors
This define to the government policy that has shared the effort worth Eur 80 million to help the German economy to help from damages caused by recession, and tax reliefs.
The political decision can share a great impact on different kinds of businesses.
The Political factor is stable and strong that can be a positive trustworthy in the future.

World Trade Organization Involvement
This can contribute Germany’s success in terms of technical and training activities.
The Germany becomes a member of the World Trade Organization 1995, now
It is committed to promoting multilateral trade & in 2000 began a series of contributions to the WTO's technical assistance &training activities.

Health Care
In Germany healthcare is found excellent because of the compulsory for all workers.
The workers give some premiums to enjoy and can usually mandatory insurance which the government offers. German spends almost ten per cent of the wages of insurance-
Germans spend almost ten present of the wages on insurance and boast a 90% rate coverage for their country as a whole. (Germany, 2006)

Economic Factors
Germany because of the country’s struggle in year 2008, & the economic recession, the result is cutting the hours of work than reducing the workforce. As to their economy is define a long-term process that will last until year 2019 with annual transfers from west to east t amount of $80 billion. In 2009 there was an approval a €50 billion economic plan to save some sectors from a downturn and a massive of unemployment situation.
Germany is the world's third-largest economy and the largest in Europe, but has been slow growth in the economics in the European Union for following reasons negotiations of the eastern German economy in labour practices that will continue to raise the unemployment rates to 11.7%, and social insurance expenses.

Germany is one of the most populated countries in the world, with almost 83 million people inhabiting 357,022 square kilometres of land. However, Germany is calculated one thousand of these companies are in global market leaders. Germany is part of the EMU; the European System of Central Banks manages the monetary policy. The European Central Bank (ECB) based in Frankfurt is the common monetary authority of all member states of the EMU and is among others responsible for the supervision of the banking system and the regulation of the money supply with 82 million inhabitants, Germany is the EU’s most populous country & therefore also the largest market within the EU. With a GDP of more than 2.4 trillion EUR, Germany are the largest economy in Europe and the third strongest economy in the world.

Social Factors
Changes in social factors can impact the company’s product such as:
Mostly are living in the cities, the welfare system is extremely developed such as: • Insurance for all, change of financing structures. • Germans are individualistic, punctuality is necessity in Germany. • Arrive on time for every appointment, whether for business or social. Being late, even if it is only by a few minutes, is very insulting to a German executive. • Business is viewed as being very serious, and Germans do not appreciate humor in a business context. • Must comply with the required norms and standards.

Technology Factors
The technological development is high regarded, as in 2008 there were about 70,000 million Internet users. Translations into German are a sign of success criterion, because Germans prefer doing business in their language. Germany's international service is excellent worldwide, consisting of extensive land & undersea cable facilities as well as earth stations in the Inmarsat, Intelsat, Eutelsat, and Intersputnik satellite systems (2001): • In the late 1990s, , the government coalition of Social Democrats & Greens decided to shut down Germany’s nuclear power plants by 2020. The country committed itself instead to developing renewable energy sources such as wind and solar power. • Germany is the leading producer of wind turbines and solar power technology in the world

Environment Factors
This is vital part and can share a great impact establishing a business. • 6th in the worlds largest Carbon emitter • 22% reduction in Carbon Emissions. ( Pls see Appendix A.1)
The automobile, mechanical engineering, electrical engineering and chemical sectors are particularly strong. Industries of the future such as environmentally friendly energy production and nanotechnology, in which the number of patent applications is doubling every two years, are steadily gaining in importance.

Legal Factors
In every country has its own rules and law that will contribute to the company’s starting a business. The World Economic Forum ranked Germany among the leading countries of 133 competitors for its judicial independence.

A Safe and Secure Business Landscape Intellectual property rights enjoy a high level of protection in Germany. This will be of great contribution to attract the business to the product safety; foreign importers and manufacturers also have to be aware of the considerable liability risks that may arise from reasonably foreseeable misuse of their products in cases where users were not instructed properly.

A limited liability Under German law a limited liability company must register itself with a share capital of at least EUR 25,000. The founding act and the articles of association have to be notarized & the corporation does not exist before completion of registration.
Trademarks and patents
Observe a strong protection in Germany. For Germany, the German Patent- and Trademark Office is in charge of these registrations.
It is necessary to see the local legislation when planning to establish a business in neighboring country such as : Basic rights and duties of the employer and the employee are settled in labour protection laws are the following: ➢ German Civil Code ➢ Working time Act ➢ Act concerning vacation paid ➢ Act against unfair dismissal
Law enforcing in Germany divided in 3 parts: • Federal, State, Local
More powers at the state level, while the Federal only at a national international level. There administration of justice is divided: • Ordinary, Labour, Administrative • Social , Financial Courts, Legal security • Germany is a modern constitutional state with transparent and reasonable laws. The advantages are internationally recognized among all countries, Germany ranks fourth in terms of legal security.
The power to impose taxes is divided between the federal government and the provinces, determined by German basic law (Taxation in Germany, 2000).

Battery Recycling
In Germany, (WEEE Guarantee System), sponsored by Bitkom Servicegesellschaft, is one potential partner with backing in an industrial association. In the area of battery recycling, the Act Revising the Law of Waste-Related Product Responsibility for Batteries and Accumulators, which came into effect on December 1, 2009, regulates the placing on the market as well as the collection & recycling scheme of batteries & accumulators in Germany. For safety aspects of several kinds of products, Germany has established the Federal Institute of Risk Assessment.

Conclusion • Leaneco will start a venture in Germany because of the following reasons:
Leaneco has its good point of selling a new-patented type of back-up power solution also called UPS (uninterruptible power supply). The product gives clear advantages compared to common solutions, which put the company in a very unique marked position. On the other side of the coin, Leaneco has its Joint Ventures and Strategic Partners LeanEco is backed by private investors and Vækstfonden. In addition, LeanEco's development activities are supported by EUDP.

• Leaneco pursue to offer the right solutions to customers. This involves a wide range of partners that contribute with relevant competencies.

Leaneco Great Opportunities: ← Leaneco has a great chance to do business in Germany even it has recent slow economic growth, & the cost of producing goods is higher than other foreign countries, because Germany offers an environment that strongly supports international business, evidence of this includes the presence of a highly skilled & productive worker force & its prime location in the heart of Europe. Investing in Germany appears to be a good business decision; incentive packages can offset real costs as well as provide tax incentives in future years. To help structure a successful integration with German consumers, Leaneco posseses a high quality innovative product. ← Leaneco would take this opportunity. There are 5 million backup power plants worldwide Diesel generators and lead-acid batteries have been the main energy source for backup power plants, but fuel cell modules constitute an attractive alternative to these due to their green profile: They don’t pollute the environment with heavy metals; they have a longer life span and also a longer backup time. ← Leaneco has its own concern about the environmental friendly & get this incentives around the world, coming from an increased environmental focus. ← Leaneco's solution for data centers replaces conventional diesel generator and lead-acid battery UPS systems for critical IT infrastructure with methanol-powered fuel cells. And this is good to start to in Germany.
Threats
• Leaneco is an expensive products, and large of production. Financial crisis that will affect the business.

• Risks to venture in Germany because of its efficiency and open market policies that the benefits of Germany’s global commerce. The economy has the effects of the global economic slowdown, & it appears a negative impact on public finances & economic growth. As a result, Germany show of its rising in fiscal deficits. As according to Pres. Hans-Werner Sinn said “ Enterprises are increasingly pessimistic about their business development.

• Currency is different in Denmark; the Germany is euro currency & my assumptions that this will bring some difficulties now and then.