Abstract
This paper seeks to explain the internationalization process of Sadyt from 1995 (date of foundation) to the present day. This company, belonging to the Sacyr de Vallehermoso group, began its international expansion in markets such as Algeria, Tunisia, and Australia. Carrying out this case study focused on one of the companies is justified by its substantial improvement in the global ranking of desalination companies. The history of this case of business success is relevant because ten of the twenty companies that lead the global desalination market are Spanish and this fact is completely unknown outside of the sector. We will analyze in detail the main elements of the company such as its customers, strategies, suppliers, and the theories that explain the internationalization of Sadyt.
Highlights
The scarcity of water resources that affects Spain in general, and the Mediterranean arc and the Spanish islands in particular, has obliged and continues to oblige the design of a complex framework in order to ensure the provision of sufficient water for productive activity. (In addition to the use of ground water resources, in Spain it has been necessary to recur to transfers between water basins, the treatment and reuse of wastewater, the extraction of underground waters and desalination.) This situation has not been exclusive to Spain, in 1995 the world desalination capacity was 20 million cubic meters per day, in 2019, this exceeds 90 million cubic meters per day [1]
That the position of Sadyt in international markets has become stronger in recent years
Following the logic that we have analyzed of the theory of oligopoly behavior, it is possible that inertias have arisen that have pushed Sadyt to strengthen its market position, in the same way, those companies that already have a higher market share than Sadyt could distance themselves even further
Summary
The scarcity of water resources that affects Spain in general, and the Mediterranean arc and the Spanish islands in particular, has obliged and continues to oblige the design of a complex framework in order to ensure the provision of sufficient water for productive activity. (In addition to the use of ground water resources, in Spain it has been necessary to recur to transfers between water basins, the treatment and reuse of wastewater, the extraction of underground waters and desalination.) This situation has not been exclusive to Spain, in 1995 the world desalination capacity was 20 million cubic meters per day, in 2019, this exceeds 90 million cubic meters per day [1]. Use of Water) Programme, in which a good part of the country’s water shortage was alleviated with the construction of desalination plants This programme, of which we can see a diagram, meant a massive demand and meant the exhaustion of the local demand for the following years, so that the internationalization of the companies in the sector is the only alternative to continue within the desalination market. The following hypothesis emerges from the answer that we can give to these questions before preparing the study The reason for this company to begin an internationalization process is that the only way to continue growing is to expand its business to other countries as once the unsatisfied demand for water resources has been covered, the only possible way to continue growing without changing the product offered is to establish new plants in geographical areas with water shortages. Based on population growth and GDP per capita forecasts in various countries, it is logical to think that the demand for desalinated water will increase over the few years (as is already happening year after year)
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