A well-planned market-entry strategy is essential for foreign state-owned enterprises (SOEs) to succeed in Canada’s oil and gas industry, according to an EY (formerly Ernst & Young) report released this morning.
Playing by the local rules: state-owned enterprise success in Canada’s oil and gas industry breaks down the key components of an effective market-entry strategy, which it says involves a lot more than simply taking a compliance-based approach to meet minimum standards.
“Over the last year we’ve seen a number of transactions take place that affirm foreign players’ – especially Asian investors’ – growing interest in Canada,” says EY’s Canadian oil and gas leader Barry Munro.
“But getting the green light to do business in Canada is just the beginning. The biggest barrier to success is not having a deep knowledge and understanding of the ongoing market forces in our country.”
The report states the components of a successful strategy include:
- Canadian workforce development;
- government and international oil company relationships;
- strategic business objectives;
- community and social responsibility;
- effective and transparent communication; and
- Canadian supplier use and development.
Munro also said the SOEs should have competitive advantages that include international operations, capital and technical capabilities.
