Hi-Tech Industry In Israel

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High tech Industry in Israel |
International Business |
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Allan AvayuEstelle MarietteKatherine Rojas |
16/11/2011 |

Index
1. Summary 3
1. Introduction 4
2. Market dynamic 5
2.1 Relevant Changes 5
2.2 Targeting and positioning of competitors 7
2.2.1 Foreign companies’ presence in Israel: an advantage for both sides 7
2.2.2 Microsoft´s implantation in Israel 82.2.3 Intel´s implantation in Israel 8
2.2.4 Other examples of foreign companies´ implantation in Israel 9
3. Business Climate 9
3.1 Strategic Analysis 9
3.1.1 SWOT Analysis 9
3.2 Business practices and tentative business and strategies to be considered for investors or companies to be applied in that market. 10
3.2.1 Business practices 10
3.2.2 Tentative business strategies11
3.3 Analysis of main environmental factors 13
3.3.1 Legal and political framework 13
3.3.2 Socio-cultural environment 15
3.3.2.1 Population and Demography 15
3.3.2.1 Education 16
3.3.2.2 Remarkable cultural aspects 16
3.3.3 Economic environment 17
3.3.4 Financial Climate 20
3.3.5 Geographical Environment 20
3.3.5.1 Geography 21
3.3.5.2 Climate 22
4.Conclusion 23
5. Bibliography 24


1. Summary

After Israel established its independence, Israel military industry developed at a rapid pace, meeting the country’s needs for armament and technologies that it could not obtain from its allies. During the same period, Israel was busy developing what was to become the best education and science research system in the Middle East. Theseworld-renowned institutions include the Technion University, Weizmann Institute and Hebrew and Tel Aviv University. It was at the Weizmann Institute where a computer was developed and assembled in the early 50´s.
Like many other small countries, Israel has sharply defined scientific and technological policies aimed at enhancing its competitive position. In science, it encourages the establishment of centresof excellence around outstanding scientists, while maintaining a level of quality across the broad spectrum of scientific fields. In technology, Israel strives for high performance through concentration on a limited number of areas
The on going success of the Israeli high-tech industry is reflected in the local and foreign stock markets. Israeli firms provide the third largest number of publics’offerings on NASDAQ and many leading American investors have established presence in Israel in order to support Israel’s high-tech firms and benefit from the current boom.
Israel high-tech industry is on the way to the forefront of technology in the world, not only in terms of knowledge and development, but also in terms of profitability and added value to the economy. Israeli leaders believethat high-tech industry can lead not only to Israel to a better future, but also to other countries. The opportunity is no longer a game of chance, the industry has demonstrated its need to expand and firmly establish its position as a world leader.
It is clear that Israel’s high-tech industry today, is one of the most powerful engines driving its economy. The course of Israel’s economic growth forthe coming years will continue to be determinate by the future of this industry and its higher percentage of scientist, and thousand of skilled people are helping to reach that aim.

1. Introduction

Israel's high-tech success has been quite a phenomenon.  As a very small country with such a small population, Israel has managed to outdo other nations much larger and more populated in whatis perhaps one of the leading growth areas of technology. The following section outlines Israel's strengths and weaknesses in developing its high-tech industry.
It has firmly established itself as the most computerized country in the Middle East. 1997 figures show that more than 250 thousand personal computers were sold in Israel, compared to 102 thousand PCs in neighbouring countries such as...