Situation Analysis: Phase Separation Solutions

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Phase Separation Solutions (PS2)
Case Analysis
Group Team Leader : Mrs Ei Phyusin Htay
Situation Analysis
Phase Separation Solutions Inc (PS2), founded in 2004 in Canada, is a young environmental management & consulting company who licensed a patent of unique TPS technology for PCB contaminated soil treatment and oil sludge recovery, having a vision of fully integrated International environmental service company. The firm's competencies, weaknesses, external opportunities and external threats are identified in below summary table.
High entry barrier due to strict licensing, high start up cost, requirement of special scientific expertise to operate
TPS technology is highly mobile, onsite remedial technology
Exclusive right to
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Oil sludge treatment market in China is still at infancy stage and fragmented
Regulatory evolution of Chinese government towards oil sludge treatment is not clear
Potential threat of other alternative technologies such as incineration is huge
Potential risk of operation team's synergy after the JV formation, for employees coming from different cultural background and different nationals
Re-enter Pharmaceutical waste management at home market, Canada (Product diversification and scope diversification strategy)
Avert risk of understating a foreign country and its legislations
Can re-exploit PS2's patent resulting from acquisition of Pharma processing
PS2 resource soon to be freed up from soil contamination business being able to emphasize fully to support this diversification strategy
Ambiguity in entry strategy possibly imposed by previously acquired and sold Pharma Processing 2 years ago
Relatively slower growth projection and high per unit transport cost compared to soil treatment may not sustain desired return by PS2 management
Geographical diversification into China (for both PCB/POP and Oil Sludge market) by establishing JVs with both NIES and Nahai

Create a new landslide opportunity at a much larger step of PS2 to next level in International landscape
Gain full insights of both PCB/POP and oil sludge in opportunistic China market

Huge human resource constraint
High Financial constraint for both JV to be supported by PS2 balance sheet (for total of