Abstract:
Demand of Liquefied Petroleum Gas (LPG) has been increasing rapidly from industrial to
domestic purpose due to unavailability of natural gas, shortage of biomass fuel, high price of
petroleum oil and other sources of energy. This project has focused on LPG market mainly for
domestic purpose. In this project, present situation of the energy sector, possible alternatives,
source, supply chain, present demand and projected demand of LPG has been analyzed. This
project has found that availability of LPG is about 0.1 million tons per year and supplied by
only 7 companies against a demand of about 0.5 million tons per year. This shortage of 0.4
million tons of LPG reveals a good potentiality and projected future demand of 1 million tons
of LPG has made this market more potential. The main purpose of this project is to find out
suitable entry mode for a foreign company to enter into LPG market of Bangladesh. This
project has given a thorough picture of the competitiveness characteristics of the LPG market
and country condition for LPG business in Bangladesh. Market research has been conducted
by following Philip Kotler’s (2009) market research system. Competiveness in the existing
market and home country (Bangladesh) situations have been analyzed by Michael Porter’s
(1998) Five Forces and National Diamond Model respectively, various entry modes have
been taken from Charles WL Hill (2007) . A suitable entry mode for a foreign company has
been suggested by analyzing internal, external factors for entry mode of Franklin Root (1998).
At end the suitable entry modes have been found considering all internal and external factors
those are influential for entry mode decision in Bangladesh. Finally this project suggests that
investment entry modes such as joint venture, wholly-own subsidiary are the suitable entry
modes for foreign LPG Company. Joint venture entry mode is the best entry mode for
Bangladesh.
