This is a market entry case that tests both quantitative analysis (transportation cost calculations) and strategic thinking about competitive dynamics. Candidates must recognize that while Spain has lower transportation costs, China's higher gas prices and existing customer relationships make it the more profitable strategic choice, despite higher shipping costs.
Your client is GasCo, a US-based natural gas company. In the last year, natural gas prices in the US have declined while prices in APAC and EMEA have increased. GasCo currently has managed to develop a new way to transport gas. The new technology significantly lowers the cost of transportation. Due to the new technology, GasCo would like to expand in the global market.
GasCo would like to know if they should enter the APAC, EMEA, or both regions?
APAC - Asia Pacific & China EMEA - Europe, Middle East, and Africa