Ørsted A/S ekspansion i Sydkorea inden for offshore vind

Abstract

This thesis is based on Ørsted A/S’ expansion in South Korea within offshore wind and therefore has main focus on which form of entry mode will be most appropriate in South Korea in order for Ørsted A/S to be able to bid on offshore areas such as the South Korean government is putting up for auction in the nearest future. Ørsted A/S in one of the world’s most leading utility companies in the field of renewable energy and has extensive knowledge of the construction and installation of both small and large offshore wind farms. The market within offshore wind in South Korea has great growth potential and it is assumed in the thesis that an appropriate entry mode in the country will be able to contribute to ensuring Ørsted A/S’ expansion in South Korea. In South Korea the offshore wind market is at a very early state. Consequently, there are number of factors that must be considered before Ørsted A/S chooses an entry mode in South Korea. In order to determine which entry mode will be most appropriate in relation to securing Ørsted A/S expansion, the starting point is which factors may have the greatest significance for Ørsted A/S expansion in South Korea. The factors are part of a trade-off decision framework, where the factors have different weightings. The decision framework is based on a trade-off between three factors, which are the degree of control, use of resources and dissemination risk. There are three overarching variables, where each variable has a number of underlying variable relevant to the trade-off between the degree of control, use of resources and dissemination risk. The thesis will be based on a number of factors, which, however do not constitute all the factors that a entity must consider when a decision of an entry mode has to be made. The factors that are analyzed are the macro factors in South Korea which are limited to South Korea’s politics, institutions and macroeconomic factors. As culture is part of the institutions, the cultural differences between Denmark and South Korea will also be included. Under the political risks, the legitimacy-based perspective will also be examined. Ørsted A/S overall strategy and transaction costs in relation to the choice of the most appropriate form of entry mode will also be examined. The conclusion of the thesis points out by comparing a number of relevant factors an their internal weighting that the most appropriate entry mode in South Korea - that can ensure Ørsted A/S expansion in South Korea will be in the form of a joint venture with a local company and therefore not via a wholly owned subsidiary or licensing-partnership