Lesson 1, Topic 1
In Progress

1.2. New markets are researched for potential tendering opportunities.

ryanrori January 7, 2021

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  • Central and Provincial Government
  • Local Authorities
  • Parastatals (Telkom, Transnet, Eskom, Iscor)
  • Corporations or the private sector
  • Donors
  • Daily tender notice boards in Government Departments
  • Private support organisations

Other sources of information for tender opportunities are identified and investigated for own business opportunities

    GOYA:

Securing new business is a major challenge as it is the only way that a business can grow and create the kind of opportunities that are so badly needed, leading to a redistribution of wealth. The good news is that all the major role players in tendering are genuinely committed to the development of the economy by opening up tendering opportunities.

The environment has, therefore, never been better for a business to grow and prosper.  Unfortunately, the opportunities won’t find you, you must find them.  The route to success is the G O Y A (Get Off your Armchair) approach!

Joint Ventures:

Often tenderers lack the capacity to secure meaningful tender opportunities.  They may be lacking certain skills or resources, and also lack experience in the tendering process.  On the other hand there are established businesses with all of the necessary skills and resources, and who are experienced in tendering.  Some even have dedicated tendering departments.  By combining forces with established businesses a tenderer may be in a position to compete effectively with bigger businesses.  With the combining of production resources and better bulk buying opportunities a tenderer can find himself in a position to submit a tender at a better price and therefore be more competitive to get a tender awarded to him.   The need for a proper, formal agreement between the parties to such a Joint Venture is very important.

Joint Ventures can be:

  • Short-term (a single project)
    • Part of a larger project
    • Permanent
    • Semi-permanent
    • Long-term relationships

Joint ventures can be forged

  • Horizontally – i e with businesses of similar size and scope
  • Vertically – with larger or smaller businesses

In both instances, there are distinct advantages to the parties involved.

In the case of horizontal joint ventures, small businesses benefit by:

  1. Combining forces to build capacity
  2. Competing with big business on better terms
  3. Combining financial, human and technical resources
  4. Benefiting from bulk buying

In the case of vertical joint ventures – or Small Business-Big Business partnerships – there is scope to:

  1. Increase the capacity of Small Businesses
  2. Improve the skills of Small Businesses
  3. Boost chances of Big Business winning the Tender

Other sources where one can find tender opportunities are:

  • International Government Agencies
  • International Companies
  • United Nations – The United Nations operates globally and is always in need of material and equipment for various programmes and projects.