Transportation Services in Czech Republic: A Strategic Reference, 2007

Countries covered: Czech Republic INTRODUCTION & METHODOLOGY What Does This Report Cover? The primary audience for this report is managers involved with the highest levels of the strategic planning process and consultants who help their clients with this task. The user will not only benefit from the hundreds of hours that went into the methodology and its application, but also from its alternative perspective on strategic planning relating to transportation services in Czech Republic. As the editor of this report, I am drawing on a methodology developed at INSEAD, an international business school (www.insead.edu). For any given industry or sector, including transportation services, the methodology decomposes a country’s strategic potential along four key dimensions: (1) latent demand, (2) micro-accessibility, (3) proxy operating pro-forma financials, and (4) macro-accessibility. A country may have very high latent demand, yet have low accessibility, making it a less attractive market than many smaller potential countries having higher levels of accessibility. With this perspective, this report provides both a micro and a macro strategic profile of transportation services in Czech Republic. It does so by compiling published information that directly relates to latent demand and accessibility, either at the micro or macro level. The reader new to Czech Republic can quickly understand where Czech Republic fits into a firm’s strategic perspective. In Chapter 2, the report investigates latent demand and micro-accessibility for transportation services in Czech Republic. In Chapters 3 and 4, the report covers proxy operating pro-forma financials and macro-accessibility in Czech Republic. Macro-accessibility is a general evaluation of investment and business conditions in Czech Republic.

Additional Information

Product's ISBN number 049735909X. How to Strategically Evaluate Czech Republic

Perhaps the most efficient way of evaluating Czech Republic is to consider key dimensions which themselves are composites of multiple factors. Composite portfolio approaches have long been used by strategic planners. The biggest challenge in this approach is to choose the appropriate factors that are the most relevant to international planning. The two measures of greatest relevance to transportation services are “latent demand” and “market accessibility”. The figure below summarizes the key dimensions and recommendations of such an approach. Using these two composites, one can prioritize all countries of the world. Countries of high latent demand and high relative accessibility (e.g. easier entry for one firm compared to other firms) are given highest priority. The figure below shows two different scenarios. Accessibility is defined as a firm’s ease of entering or supplying from or to a market (the “supply side”), and latent demand is an indicator of the potential in serving from or to the market (the “demand side”).
Framework for Prioritizing Countries

Demand/Market Potential Driven Firm





















Relative Accessibility



Accessibility/Supply Averse Firm























In the top figure, the firm is driven by market potential, whereas the bottom figure represents a firm that is driven by costs or by an aversion to difficult markets. This report treats the reader as coming from a “generic firm” approaching the global market - neither a market-driven nor a cost-driven company. Planners must therefore augment this report with their own company-specific factors that might change the priorities (e.g. a Canadian firm may have higher accessibility in Canada than a German firm).

Latent Demand and Accessibility in Czech Republic

This report provides a detailed overview of factors driving latent demand and accessibility for transportation services in Czech Republic. Latent demand is largely driven by economic fundamentals specific to transportation services. This topic is discussed in Chapter 2 using work carried out in Czech Republic on behalf of American firms and authored by the United States government (typically commercial attachés or similar persons in local offices of the U.S. Department of State). I have included a number of edits to clarify the information provided. Latent demand only represents half of the picture. Chapter 2 also deals with micro-accessibility for transportation services in Czech Republic. I use the term “micro” since the discussion is focused specifically on transportation services.

Chapter 3 is also a stand-alone report that I have authored. It covers proxy pro-forma financial indicators of firms operating in Czech Republic. I use the word “proxy” because the provided figures only cover a “what if” scenario, based on actual operating results for firms in Czech Republic. The numbers are only indicative of an average firm whose primary activity is in Czech Republic. It covers a vertical analysis of the maximum likelihood balance sheet, income statement, and financial ratios of firms operating in Czech Republic. It does so for a particular Standard Industrial Classification (SIC) code. That code covers “arrangement of passenger transportation”, as defined in Chapter 3. Again, while “arrangement of passenger transportation” does not exactly equate to “transportation services”, it nevertheless gives an indicator of how Czech Republic compares to other countries for a proxy adjacent category along various dimensions.

Chapter 4 deals with macro-accessibility and covers factors that go beyond transportation services. A country may at first sight appear to be attractive due to a high latent demand, but it is often less attractive when one considers at the macro level how easy it might be to serve that entire potential and/or general business risks. While accessibility will always vary from one company to another for a given country, the following domains are typically considered when evaluating macro-accessibility in Czech Republic:
Openness to Trade in Czech Republic
Openness to Direct Investment in Czech Republic
Local Marketing and Entry Strategy Alternatives
Local Human Resources
Local Risks

Across these domains, a number of not-so-obvious factors can affect accessibility and risk. These are covered in the Chapter 4, which is a general overview of investment and business conditions in Czech Republic. Chapter 4 is also presented from the perspective of an American firm, though is equally applicable to most firms entering Czech Republic. This chapter is also authored by local offices of the U.S. government, as is Chapter 2. Likewise, I have included a number of edits to clarify the provided information as it relates to the general strategic framework mentioned earlier.

More Czech Republic Reports

D&B Country RiskLine Report: The Czech Republic by Dun & Bradstreet Inc.
This D&B Country RiskLine Report will help you analyze the risks, opportunities and likely payment delays when doing business in this country. It includes ...

D&B Country Report: The Czech Republic by Dun & Bradstreet Inc.
D&B Country Report. Comprehensive information for evaluating risks and opportunities when trading or investing in this country. Providing critical information and analysis on ...

Perspective: Manufacturing in the Czech Republic: Industry Trends and Challenges by IDC
Czech manufacturing is in transition. Having been hit hard in the economic slowdown of 2009, it is now recovering, with current and future growth expected ...

Czech Republic This Week by Intellinews
Weekly report on the most significant economic, business, financial markets and political issues and events propelling the Czech Republic's ...

Country Report Czech Republic January 2011 by Economist Intelligence Unit
Country Reports analyse political and economic trends in featured countries. They show you exactly how national, regional and global events will affect your business in ...

See all reports like this >>