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Success Factors in Offset Deals: A Case Study Based Examination
Heinz Kirchwehm
Pages - 28 - 40     |    Revised - 31-03-2014     |    Published - 30-04-2014
Volume - 5   Issue - 2    |    Publication Date - March / April 2014  Table of Contents
Offset, Success Factors, Case Study, Saudi Arabian Offset Projects.
The requests for offset obligations occurs primarily in the area of arms imports and covers the full range of industrial and commercial benefits that companies provide to foreign governments as inducements or conditions for the purchase of military goods and services. Increasingly, all major contracts ask for offset obligations. They are now key differentiators in major contracts and it is a fast growing market. For the suppliers, offsets are a key differentiator in earning new business and therefore should be accepted that much accurateness is put on the successful execution of the offset projects. Nevertheless, it comes to problems during the project phase and sometimes we’ve the situation that a offset project failed. The aim of this paper is to exam which success- giving factors are exists in the offset related interaction between buyer, seller and participating industry. The data for this investigation were obtained from secondary sources which were mainly accessible via internet. After data collection, an analysis was performed which was based on the context of this paper and also in connection with the chosen case study: Saudi Arabia. As a result of this analysis can be derived several success factors, which could be also seen as the foundation for an optimized execution of offset obligations. The paper concludes with a reflection of the investigation approach and as well with a classification of the subject offset. Furthermore the results of the analyzes are summarized and an outlook for further researches is given.
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Mr. Heinz Kirchwehm
Faculty of Business Administration Turiba University 68 Graudu Street, Riga, LV-1058 - Germany