Gizem ÖZTÜRK 1002150081

T. Aleyna AKÇA 1002150019

D. Merve GÜRAY 1002150132

Arzu ARSLAN 1002150044

Hüseyin DUMAN 1002140063

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 GAMA Electricity Maximizer Co.

Gama, was established in 2008 in Tehran, Iran the political and economic capital of the country. We
entered the renewable energy sector realizing the situation and opportunities of Iran and the
importance of switching our energy source from non-renewable to renewable as a whole globe. Not
only us but also other investors worldwide saw the facility in Shiraz to build a solar and wind farm and
we created our software system aiming to maximize the utility from that energy transforming
transaction and minimizing the cost. We have been adding value and differentiation to our product.
We simultaneously work with the reports coming from meteorology to foresee the windy days,
average dark hours in year etc. In 2015, one of our main customers who produce power plants out of
solar energy decided to expand its business with vertical integration.
VISION
To become the leading company for innovation and entrepreneurship in sustainable energy in Iran.
MISSION
To provide its customers with eco-friendly, innovative and cost effective solutions while constantly
developing its efficiency in the field of renewable energy by GAMA’s high talented technology
background.

Target Market
Our target customers are Solar and Wind energy producers in Shiraz and their need is to get the
maximum utility. The way we will meet the need of our customers is with the help of software, reach
the maximum in a close time. As the solar panels are quite complicated systems, most firms and
individuals have problem with the engineering part of it. We, here help them out online to use
effectively.
Our software promising the firms:
- Easy Usage: At this rate, most of the firms stick to software developments while using solar panel
software. That was leading a lot of cost when you faced any force. When you have any problem about
software, you can’t fix it by yourself. You have to call software developers for additional price. In our
product, no need to call us. Thanks to our software’s easy usage, all you need is three courses seminar.
After these seminars, you’ll be able to use, fix and change customization settings.
-Avoiding any additional wastes: While using our product, everything will be in your control. You
will see, how your plant process is going in Shiraz, whenever and wherever you are. You can get help
before any mistakes happen.

Our Targets
Gama is aiming to deal with mostly big size companies, but also in small percent, little size
companies.
Our target area needs easy usage of customization and low start-up prices. We promise that to our
customers. One of our target area is the companies.

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Product

We know that to keep the energy in the global system is the only solution to create a
sustainable life. Nature has provided many excellent opportunities for Iran to use renewable energies
instead of fossil fuels which not only harm the globe but also drain away. Thus, investments in wind
and solar energy fields are getting vicious importance and interest year by year. Our product which is a
software aiming to provide renewable energy transformers to receive the optimum utility from the
energy source with minimum effort and cost. In order to ensure maximum gain, we assess the
direction and the speed of the wind and the sun light beam angle and adjust the panel’s and tribune’s
position in accordance with it.

Renewable energy sector is mainstreaming, however it is

still now enough. Our software encourages the investors
with its easy-to-implement globally standardized micro
grid simulation services.
Optimization and sensitivity analysis algorithms
allow you to evaluate the economic and technical
feasibility of a large number of technology options and to
account for variations in technology costs, electric load,
and energy resource availability.
Since the cost of
solar panels have slumped substantially over the past decades
which leads popularity of solar to increase among households in
today’s world. One of our services is the calculation of total
energy source and how much be will enough for a specific site.
There are some problems related to solar panels which are the
energy excess and capacity shortage. These don’t happen at the
same time. With the help of our software, our customers can
reach the information how much energy they will need in the
night time and in cloudy weathers. So that, they can think about
investing in batteries and storage machines which will be
expense to them.

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Market Background

While fossil fuels remain the

most popular source of energy
globally, renewable energy
sources like solar power have
been steadily gaining in terms of
overall use.
The next five years is estimated
to be double of current capacity
based on the information of the
people utilizing power
demanding providers to invest in
renewable energy. However,
there were other factors as well;
uncertainty about the Trump
administration’s approach to
renewable energy, natural
disasters, and other external
events put a damper on solar
sector.
The Global Wind Energy
Council released its biennial
Global Wind Energy Outlook
today, outlining scenarios where
wind could supply 20% of
global electricity by 2030. With
dramatic price decreases in recent years for wind, solar and other renewables, a decarbonized power
sector is not only technically feasible, but is economically competitive as well. New markets are
developing rapidly across Africa, Asia and Latin America, supplying clean energy to support
sustainable development.
However, Shiraz, Iran is a massive opportunity for renewable energy with its dry and windy air and
also convenient with sun rays. At the present time, Iran’s total power supply relies on non-renewable
energies like petrol and derivatives.
Iran also in need for IT services with qualified employees.
You can see more thorough information below in PESTEL Analysis section.

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 ANALYSIS OF THE MARKET ENVIRONMENT

EXTERNAL ANALYSIS
There are certain topics that we should talk about while the analysing the external environment of our
company to give us specific idea sor knowledge that we should be aware and cautious of to make sure
we are not getting affected badly by them.
We examine the external environment with the segmentation of PESTEL which is;

 Political
 Economical
 Social
 Technological
 Environmental
 Legal

Political
Political factors play a significant role in determining the factors that can impact long term
profitability in a certain country or market. 
Foreign entrepreneurs who set up companies in Iran generally prefer private joint stock companies.
Private Joint Stock Company is defined by law as companies whose capital is divided into certain
shares and whose liabilities are limited to the amount of shares they own.
The establishment of a Private Joint Stock Company requires at least 2 managers and 3 shareholders of
any nationality. So, the owners of the company can be 100% foreign. Foreign investors and managers
invest in Iran then they gain 3-year work and residence permits in Iran following the establishment of
the company.
In case of cash payment, 35% of the capital is sufficient to pay during the installation, the rest can be
paid up to 5 years after the invitation of the board of directors and shareholders.
These rules make it advantageous and easy to establish a company as a foreign investor in Iran.
Investing in Iran free zones will ensure that; 100% corporate tax exemption for 20 years.
There is an opportunity for foreigners to buy land within regions.
If all companies registered in Iran export 30% of their annual production, they may receive up to 50%
discount on corporate tax payments.
There is no stoppage/withholding tax in Iran based on profit share. In addition, revenues from the sale
of listed companies and the purchase and sale of real estate are exempt from tax.

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Iran, including Turkey, China, France, Germany, South Africa and Spain have also been signed by 42
countries Double Taxation Agreements for the sale of the stoppage/withholding tax applied to
payments made from abroad.
Iran: Political stability index (-2.5 weak; 2.5
strong): For that indicator, The World Bank
provides data for Iran from 1996 to 2017.
The average value for Iran during that
period was -0.97 points with a minimum of
-1.63 points in 2010 and a maximum of
-0.32 points in 1996.
In last few years, there has seen relatively
increasing in political stability.

Iran: Short-term political risk (1=low,

7=high): For that indicator, Credendo
Group provides data for Iran from 2014 to
2019. The average value for Iran during
that period was 7 index points with a
minimum of 6 index points in 2016 and a
maximum of 7 index points in 2014. The
short-term political risk classification
measures the likelihood of a risk caused by
political and assimilated events connected
to cross-border transactions with a risk
horizon of up to 1 year.

Iran: Medium/long-term political risk

(1=low, 7=high): For that indicator,
Credendo Group provides data for Iran
from 2014 to 2019. The average value for
Iran during that period was 6.8 index points
with a minimum of 6 index points in 2016
and a maximum of 7 index points in 2014.
The medium-/long-term political risk
classification measures the likelihood of a
risk caused by political and assimilated
events connected to cross-border
transactions with a risk horizon beyond 1
year.

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ECONOMICAL
Inflation Rate
Iran’s inflation rate rose sharply to 30.49
percent in 2018 and was projected to rise
another six percentage points before slowly
starting to decline. Given the recent
sanctions by the United States regarding the
nuclear deal, this number has both political
and economic implications.
High inflation leads to high interest rates ,
which leads to less borrowing. Less
borrowing means less investment, which
slows economic growth. This slower growth
often leads to higher inflation, which is what economists call an inflationary spiral. As such, Iran
will have difficulty achieving substantial GDP growth until inflation returns to manageable rates.
GDP
Iran’s gross domestic product (GDP)
declined by 4.85 percent in 2018 after
adjusting for inflation. This figure fell
from 12.5 percent growth two years ago,
which had been a reaction to sanctions
lifting after the Joint Comprehensive Plan
of Action (JPCOA) regarding Iran’s
nuclear program. United States president
Donald Trump ended that country’s
participation in the deal, imposing new
sanctions.
Although Iran’s main export partners are
largely in Asia, many of the transactions are carried out using U.S. dollars. Even though other
means of payment are possible, some countries worry about political ramifications of continuing
trade relations with Iran. Iran’s greatest strength at the moment may be its low national debt,
meaning that it can borrow a substantial amount of money if it can find a willing lender. However,
given the instability of the political situation worldwide and regionally, it is difficult to assume that
such a borrower exists at the moment.
Interest Rate
The benchmark interest rate in Iran was last recorded at 18 percent. Interest Rate in Iran averaged
15.79 percent from 1973 until 2019, reaching an all time high of 22 percent in June of 2014 and a
record low of 10 percent in December of 1979. In Iran, the Central Bank of Iran does not use the
benchmark interest rate. Instead, the Central Bank of Iran sets the Bank Profit rates for lending and
borrowing.

Actual Previous Highest Lowest Dates Unit Frequency

18.00 18.00 22.00 10.00 1973-2019 percent monthly

Unemployment Rate

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This statistic shows the unemployment rate of Iran from 1998 to 2018. In 2018, Iran's
unemployment rate was estimated to amount to 12 percent of the total labor force.
In times of a struggling economy, it is typically more difficult to create jobs and introduce people
to the labor force. Because Iran's economic activity still depends to a large extent on oil revenues,
this also reduces the stability of the economy and employment. With a decreasing per capita GDP
and a high inflation rate people are also more vulnerable to changes in income and employment,
making the unemployment a pressing issue that the country will have to manage.

Exchange Rate
1 IRR = 0,00017 TR 1 TL = 7.324,39 IRR
1 IRR = 0,000024 $ 1$ = 42.105,00 IRR
1 IRR = 0,000027 € 1€ = 46.759,71 IRR
Iran is planning to change the name of the currency Riyal to Tyumen and throw four zeros out of
the money. The Iranian economy and money are experiencing a difficult period due to the financial
and commercial sanctions imposed by the US last year. Three years ago , 1 $ =37.000 IRR but last
year, the effect of sanctions decreased the value of IRR, 1 $ = 180.000 IRR. It is current excange
rate officially 1 $ = 42.000 IRR , although in the markets are traded as 120.000 IRR. The
International Monetary Fund (IMF) predicts a 6% downsizing in Iran’s economy this year due to
sanctions and tensions in the region.

The running costs of non-renewable energy production can fluctuate quite harshly even in short
time period if the market is unstable. Things like oil crises and wars have less effect on renewable
energy production. Thus inflation, interest- and exchange rates have less effect on renewable
energy production. From economic point of view renewable energy is a cheaper solution in long
term with less risks from market fluctuations. However, the capital costs can be quite high for
some economies and thus to support renewable energy production many countries have different
incentives, like lower taxation and easy access to investments.

SOCIAL
Society’s culture and way of doing things impact the culture of an organization in an environment.
Attitudes about renewable energy seem to be very connected to the public attitudes about climate
change. When people are skeptical about climate change there’s little motivation to change the
energy habits and innovate new energy solutions. Informing the public is critical when coming up
with new renewable energy innovations.
Another important socio-cultural factor is population growth and its effects on the planet. It took
hundreds of thousands of years for the world population to grow to 1 billion – then in just another
200 years or so, it grew sevenfold. In 2011, the global population reached the 7 billion mark, and
today,
it stands at about 7.3 billion. A 2009 study of the relationship between population growth and
global warming determined that the “carbon legacy” of just one child can produce 20 times more
greenhouse gas than a person will save by driving a high-mileage car, recycling, using energy-
efficient appliances and light bulbs, etc. Clearly, the potential savings from reduced reproduction
are huge compared to the savings that can be achieved by changes in lifestyle.

TECHNOLOGICAL

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When you talk about renewable energy you always connect it to technology. New and innovative
technologies are the key to make renewable energies the major energy source of the world. Without
technology we can’t move forward from our current energy production methods. New technology
always produces challenges and new questions, which is why the renewable energies industry is in
constant need of professionals to take us forward. The movement of wind and water, the heat and
light of the sun, the carbohydrates in plants, and the warmth in the Earth—all are energy sources
that can supply our needs in a sustainable way. A variety of methods are used to convert these
renewable resources into electricity. Each comes with its own unique set of technologies, benefits
and challenges. New technologies are being developed constantly to make these methods more
reliable and more efficient. Scientists, researchers and engineers are also trying to make discovered
methods work. The technology in renewable energy is fast developing but it still needs more
support. It is clear that technology is always tied up to economical, political and socio-cultural
factors. More and more countries are investing on the production and development of renewable
energy technology. At the moment renewable energies are a minor portion of the energy business
in the world, but that portion is increasing every year.
Local developers lack experience and knowledge compared with other jurisdictions where
renewable energy is more developed. Furthermore, in a country where the majority of energy is
generated by fossil fuels, there is a lack of knowledge about the benefits of renewable energy,
particularly in rural areas.
Intelligent energy automation combines the Internet of objects and a networked control system
with sensors and electronics that connect energy sources, microgrid and a cloud-based repository of
real-time data.

ENVIRONMENTAL

Vehicles emissions, refinery operations, industrial effluents which contribute to poor air quality.
Most cars use leaded gas and lack emission control equipment. The continued heavy use of fossil-
fuels in Iran has major associated adverse environmental and health impacts. Renewable energy
can help to reduce those impacts.
The application of renewable energy will decrease emissions significantly. This is particularly
important for Iran, as the country is rapidly approaching an industrialization phase with increasing
demand for energy and rising water and air pollution.
Reducing emissions will decrease direct costs on measures to reduce pollution and to protect the
environment as well as decreasing indirect external costs such as healthcare costs.
LEGAL
Article 62 of The Law of Regulation a Part of the Governmental Financial Provisions: This is a law
very similar to Feed-in-Tariff laws, used in European countries, This concept allows the most
feasible renewable energy source to develop at the first.
Working hours in Iran are 8 hours on Saturdays to Wednesday and 4 hours on Thursday. Thursday
and Friday are accepted at the weekend.

SWOT ANALYSIS

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 STRENGTHS WEAKNESSES
Low labor cost High investment costs of renewable energies
Equipment and Facilities High cost of development of renewable
Maintenance capabilities energies
Capacity in installation, construction and Lack of industrial partners
operation of renewable energy systems Lack of financial resources
Skilled labor Lack of R&D
Lack of innovation

OPPORTUNITIES THREATS
Fast growing sector Lack of strategic planning for a renewable
Private sector involvement in renewable energy program
energy Lack of subsidies for renewable energies
World Bank grants for renewable energy Technology transfer problems
projects High R&D expenses
The security of renewable energy systems
Market enlargement opportunities in
neighboring countries

RISK MANAGEMENT

The bitter experience of the global recession has provoked many corporations around the globe to
become more concerned about risk management than ever before. Due to the sheer volume of
investments required, power generation business is considered as more risky than many other
enterprises. We have placed risk management on top of our agenda. In order to minimise and manage
our risks, we aim to create a risk culture within the organisation and to systematically develop the
management decision making processes. It is important to note that in managing risk, we do not aim to
merely avoid risk, but to identify lucrative business opportunities as well.

PORTER’S FIVE FORCES

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 Threat of new entrants is HIGH LOW
low because;
Economies of scale are X
Product differentiation is X
Capital requirements are X
Switching costs are X
Incumbent’s control of X
distribution channels is
Incumbent’s proprietary X
knowledge is
Incumbent’s access to raw X
materials is
Incumbent’s access to X
government subsidies is

This force determines how easy (or not) it is to enter the energy industry. The energy industry is
profitable but there are some barriers to enter, rivalry can not intensifies soon. There is no more
organizations compete for the same market share. It is essential for our organization to create high
barriers to enter to deter new entrants.

Power of buyers is low HIGH LOW

because;
Concentration of buyers X
relative to suppliers is
Switching costs are X
Product differentiation of X
suppliers is
Threat of backward X
integration by buyers is
Extent of buyer’s profits is X
Importance of the X
supplier’s input to quality of
buyer’s final product is

Our buyers can not have the power to demand lower price or higher product quality from us because
we are producing software which has high price and high quality. Lower price means lower revenues
for the producer, while higher quality products usually raise production costs. So if the buyers want
to have high quality software they have to give high price.

Power of suppliers is low HIGH LOW

because;
Concentration relative to X
buyer industry is
Availability of substitute X
product is
Importance of customer to X

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 the supplier is
Differentiation of the X
supplier’s product and
services is
Switching costs of the buyer X
are
Threat of forward X
integration by the supplier
is

Strong bargaining power allows suppliers to sell higher priced or low quality raw materials to their
buyers. This directly affects the buying firms’ profits because it has to pay more for materials.
However we do not have supplier because software is not a existing product.

Threat of substitute HIGH LOW

products is low because;
The differentiation of the X
substitute product is
Rate of improvement in X
price-performance
relationship of substitute
product is

This force is especially threatening when buyers can easily find substitute products with attractive
prices or better quality and when buyers can switch from one product or service to another with little
cost. So our buyers can not find easily any product to substitute our product and services.

Intensity of competitive HIGH LOW

rivalry is low because;
Number of competitors is X
Industry growth rate is X
Fixed costs are X
Storage costs are X
Product differentiation is X
Switching costs are X
Exit barriers are X
Strategic stakes are X

This force is the major determinant on how competitive and profitable an industry is. We are not in
competitive industry, we do not have to compete aggressively for a market share.

Iran currently is only producing 0.2% of its energy from renewable sources. The Iranian government
is pushing for a move away from the use of hydrocarbons as a source of electricity production. This
will free up oil and gas for export and allow electricity to be produced more cost effectively. Iran’s
policy makers have recognised the potential of the renewable energy sector and have taken steps to
exploit it. The Iranian government in its 5th Development Plan (2010 to 2015) announced plans to
install 5,000 MW of renewable energy by providing incentives, such as minimum tariff rates, to the
private sector to invest in the sector.

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 BCG Matrix

BCG Matrix is a good way to see your position in market and the situation of whole market. It consists
of two section which are the growth rate of the market and relative market share.

HIGH
Growth

Rate

LOW

HIGH LOW

Market Share

BCG Matrix is divided into four parts; representing the high growth rate and high market share is
symbolized with star, high growth rate but low market share is symbolized with question mark, low
growth rate and high market share is symbolized with cow and final dog represents low growth rate
and low market share.

STRATEGIES

Corporate Level Strategies

Businesses set goals that are desired arrival and create strategies to reach that point. Corporate
level strategies wherein executive operations and decisions made. It is the top management’s game

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plan for administering and directing the entire concern based on the company’s business environment
and internal capabilities.
One of our biggest markets is Shiraz where solar panels and wind tribune farms getting bigger.
Although there are fields, opportunity of investment in solar and wind energy is considerably high.
Our software focuses mainly on renewable energy tools, however can be utilized in also nonrenewable
energies which is the 99% of Iran’s energy source. In the long run, we will be supplying service for
the upcoming energy giants. As the renewable energy never ends and population in Iran and the whole
globe will continue consuming energy, potential customers keep increasing.
The company mainly focuses on the giant solar and wind energy producers but also small
households and the opportunity in the market is obvious. Hence, there will be more customers for us
but also more service providers like us. In order to keep the market share stable and higher, it will
pursue expansion strategy which can be done by adding value to the product or heighten the quality of
service and provide service in different fields. Also for retaining more customers, the trust is an
important tool which should be done by persuade the customers that the price of the total product is
worth.

Business Level Strategies

An organization's core competencies should be focused on satisfying customer needs or

preferences in order to achieve above average returns. Our customers are the companies producing
energy through solar panel farms and wind tribunes and distribute it or create any kind of batteries
with it. In order to satisfy their needs, we need to provide after transaction services and fulfill the
expectations from our work, moreover, provide sustainable consistent results.
The focus that brings us competitive advantage among our rivals is the location of headquarter
and the R&D lab. Iran and Turkey both are involved in Economic Co-operation Organization which
bring benefit to both of the countries. Main rivals of us are from USA, Turkey has relatively better
relationship than USA which is another cost directive reason besides the low price of brainpower.
Our business level strategy is to pursue focus differentiation which is a path for organizations
not only compete based on differentiation, but also select a small segment of the market to provide
goods and services. The discriminating feature of our software is the usage for the different sources at
the same time aiming to reach the optimum utility.

FUNCTIONAL LEVEL STRATEGIES

Human Resource Strategies

 Trained work force

We care about training our work force cause that highly trained work force who adapted our
organizational culture and satisfied with their job will function as a valuable asset of organization so
the company takes advantage of not needing for new and invest again on their training.

Gama has a mentor program. All newcomers match with a mentor who could lead them in a specific
field.

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  Language education

Because of Gama an international company we would like to minimize communication problems with
courage our subordinates to learn Turkish and Persian.

 Flexi-time

White collage workers could vary their starting and finishing times each day with choosing of three
time slots; 8am-4pm, 9am-5pm, 10am-6pm.

Marketing

 Providing an accurate assessment of customer product preference.

 Distributing our product directly; without market intermediary.

Operations

 Increasing high-quality production.

Research & Development

 Designing products that integrate customer demands and production capabilities.

 Testing the feasibility of concepts before producing full-scale prototypes by our strong
software engineer team

Coach-Style Leadership
GAMA focuses on identifying the individual strengths of each member and wants them to work
together. We care about growth and success of individual employees and aim to provide good balance
of support and challenge; we believe it will reduce stress while on-the-job development increases. So
coach-style leadership will help the organization to raise team spirit, maximize performance, ensure
long term effectiveness surely by implementing the functional strategies that we talked about above.

BOARD OF DIRECTORS

GAMA ENERGY SOFTWARE INC.

CEO

T. ALEYNA AKÇA

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CHIEF FINANCE AND
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Shiraz_fig7_261364068

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economic_viability_of_a_hybrid_wind_and_solar_power_system_for_electrification_of_a_commercia
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