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What is BOT(Business-Operate-Transform) ...

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Nupur Vaidya

| Updated on April 25, 2019 | others

What is BOT(Business-Operate-Transform) model

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Mayank Gupta

@mayankgupta5585 | Posted on April 25, 2019

I guess the proper term is Built operate and transfer ie BOT. BOT model is generally used in International Business expansion. It is also called as turnkey projects. When a firm is planning to go international in terms of its operations, it has a route of turnkey projects or BOT.


So usually happens under this model is when a firm is looking for market outside it's domestic market but doesnot have necessary knowledge about the foreign countrys rules, political environment, legal environment, social and economic environment. So in short we can say if a firm doesn't have necessary skills and capabilities to build on the facilities and the infrastructure in the foreign country, what it does is, it transfer the contract to a firm there in the foreign country who has specialisations and the necessary skills to build the basic facilities and infrastructure.

So the foreign firm sets up all the necessary facilities buildings and the supporting infrastructure to start the operations. Thus it also known as Turnkey project. The firm has got to do nothing just turn the key on of the project. Various forms like Larsen and Turbo generally take turnkey project. They build the project operate it and transfer it to their clients.




This is not a very expensive mode of entry into the foreign market. Especially for the firms who lacks the adequate skills and capabilities. It is comparative a easier way as well to enter the foreign market.
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