Friday 24 February 2012

How doing business in Qatar


When the client orders a project he has two ways to launch a business proposal:

  •    A classic one → some company are in competition and should present a project to the client.
o    The client could ask the company to take care of every thing and propose to the client its solution (with all the urban furniture so the fins). In that case, the bin company has to approach the building company. In that solution, it is common that the client ask that local company participate to the project.
o    Or the client (the person responsible of public infrastructure in the Qatari government) asks to the company just to build. He will do a business proposal for the different furniture (for the bins). In that case, the client wants to have standardized bins for all the different projects (the stadiums) or even for all the new infrastructures in the country. This case in more rare.
  •    A concession → The client let to the building company to take care of everything and the construction will be own, for a defined time, by the building company that will earn money by exploiting the building (stadiums for instance why entrances).
Bouygues is going to create a co-organization with companies in Qatar in order to win the business proposal (the second favourite company is Vinci). So the solution most likely is the classic one, with cooperation with local partners. Bouygues will propose to build the stadiums and let the local company to take care of x% of the business (negotiation about the %), for raw materials for instance, or furniture. In that case, the bin company has to approach Bouygues (and Vinci in case that this company will win) and propose to work with them.

It is possible that Qatar will ask for a particular model of bins, so the bin company has to be flexible on that (propose a personalized design for example).

After a talk with a contact on a construction firm, the conclusion is that it will be unlikely that Qatar ask to only one company to build all the stadiums. So Vinci (or another one, but it is one of the favourite) will work on some projects too. It is important to approach the two companies in order to be the favourite in that market (because of the low differentiation concerning bins à price is not really important, there are other company with a similar design and good quality).

Approach the architecture company is also important because the design of the bins have to suit with the design of the infrastructures (stadiums, museums, buildings, etc.).

1 comment:

  1. Good work Yohann when interviewing people from two construction companies Bouygues and Vinci.

    http://www.bouygues.com/en/group/

    http://www.vinci.com/vinci.nsf/en/index.htm

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