GatewayNews- your Gateway to new markets

GatewayNews- your Gateway to new markets

Winter 2010, No#8

Global Market Perspectives

Gateway to Russia and springboard to EU

Global Management Challange

How will EUR impact Estonian economy?

GatewayBal�c and Global Intelligence Alliance are hold-ing a seminar on Global Market perspec�ves and Mar-ket Intelli¬gence challenges. The speakers will be local market special¬ists from Brazil, South Africa, United Arab Emirates, Czech Republic, Russia and China.

Market Intelligence challenges

Current market drivers?How to approach the

market?

The GIA Summit gathers Market Intelligence experts from South America, China, Middle East, South Africa, Russia,

France and Central Europe to Riga

Leila Gaaserud from Dubai will tell about Market Intelligence challenges in Mid-dle East, Tom Rideg from Hong Kong will give his insights in entering the Asian markets, Stuart Ma-clachlan from South Africa will present the possi¬bilities in Africa, Filip Korinek from Czech Republic and Al-exander Pechersky from Russia will show the variety of Central and Eastern Europe and Rus¬sia, and Natan Rodeguero from

What? Seminar on Global Market

Perspectives

Who?

GIA market experts

When?

12th of January, 17.30

Where?

Stockholm School of Economics in

Riga, Latvia

Apply?

inga.ulmane@gatewaybaltic.com

Unique opportunity to

meet market experts from

five continents

Global Market Perspectives

The seminar will look into the current situ-a�on in different parts of the world, show pos¬sibili�es for market development as well as give insights for approaching the market.

GatewayNews- your Gateway to new markets

The Global Management Challenge is the largest Strat-egy and Management Competition in the world.

The Global Management Challenge consists of a Man-agement Simulation in which each team runs a Com-pany, with the objective of getting the highest com-pany share price on the simulated Stock exchange.

Managing a company, without running real-world risks, and taking top management decisions, the com-petitors are given the opportunity to:

- Analyse Financial and Economic Indicators,

- Broaden their views on Corporate Strategy,

- Interact with the different Functional Areas of a Company,

- Understand the Market Conditions in which they compete and Customer Satisfaction,

- Become aware of the impact of their Decisions on the Organization itself, within an environment designed to encourage and develop teamwork

Now there is a chance to challenge yourself and improve your business management skills in Baltics too.

Apply for Global Management Challenge!

Registration on www.worldgmc.com/latvia

till December 15.

Who will winthe

Global Management

ChallengeChallenge

yourself and learn?

GatewayNews- your Gateway to new markets

Gateway to Russia and springboard to EuropeThe Baltic countries are located at the crossroads of northern and eastern Europe. Being between two worlds and markets – European Union and on the east side Russia – Baltic countries have strategic lo-cation for being gateway to the CIS markets for EU countries and opening for Russian companies to EU markets.

The location is not only favourable for its geographi-cal location but also for the well developed logistic infrastructure. Railway corridor links Baltic ports with Russia and the Far East, the region has five ice free ports, predominantly for transit shippers, infrastruc-ture investments in the latest years, as lead to a func-tional road network connecting European and CIS road networks.

Although, the location matters, one should not un-dervalue the understanding of the two business cul-tures – the Western business manners and post-so-viet business thinking. Having the knowledge of both mindsets and experience of doing business in east and west is a value of its own for facilitation of busi-ness developments to both directions.

Below we have described several business cases when the comparative advantage of Baltic location and business approach has been used as a spring-board for a business development in a new territory.

Geographical location

Transportation linksBusiness culture

Norwegian company Torgy which supplies piping solutions for gas and oil in-dustry is using their daughter company in Latvia for market entry to Kaza-khstan. The director of Latvian branch comments: “Norwegian owners appreciate our knowledge of post social business approach, values our knowledge of Rus-sian language, and admits that although Kazakhstan is very interesting for its size and access to natural resources, they would not approach the market on their own. We are a link that connects two different business approaches”.

URALCHEM Group, one of the largest pro-ducers of nitrogen and phosphate ferti-lizers in Russia and the CIS.The Rus-sia giant opened a daughter company in Latvia in 2009. Director, Valentin La-vrentjev comments in Latvian business daily on the reasons for chosing Latvia as their strategic location in EU: “The decision to open an export trad-ing branch in Riga was mainly for three reasons: competitive logistic solutions with ports which allow us to transport products further to South America, ac-cess to Russian speaking personell and proximity to Russia”.

Entering a new and export market requires �me and financial investments. If the company is a fresh start up, they might have �me but rarely spare money to invest in market entry ac�vi�es. Therefore, it is crucial that companies act strate-gically and concentrate their resources on their target markets.

Small is beautiful

Anna House is a producer of cardboard playhouses for children. Agnese, director of Anna House, started her company in 2009. As a mother she spo�ed the need in the market for stable, eco-friendly and funny to play in cardboard houses. She founded the com-pany and designed a new product for the market of young families which enhances children crea�vity and involves all the family in playing-learning experi-ence.

Her first products Anna House sold in Latvia to private persons over the internet and to municipali�es as an entertainment during city celebra�ons. In spring of 2010, Anna House joined the crea�ve incubator in Riga with aim to develop her business from small scale hobby type ac�vity to own business. As the first steps, Anna House developed was sales to Bal�c mar-kets as well as increased the number of products in their assortment.

GatewayBal�c started to work with Anna House in August with aim to research possibili�es in Sweden and Norway, iden�fy poten�al partners and intro-duce Anna House product. Inga Ulmane and Zanda Vipule were the GatewayBal�c team in charge of Anna House project execu�on. The project resulted in a one week long business trip around Sweden and Norway during which Anna House met with 10 com-panies to discuss coopera�on opportuni�es.

This year we have started coopera�on with several business incubators and business parks in Bal�c states for suppor�ng their companies with market entry services. O�en business incubators can partly finance market entry services making it accessible for the company. For business incubators and science parks,

GatewayBal�c organizes educa�on seminars on ex-port topics; study trips with aim of product develop-ment, as well as provide market and export intelli-gence service for individual companies. Below is the story of one of our recent clients Anna House which is based in Riga crea�ve incubator.

Anna House story

We are curious to hear, how did it go in Sweden and Norway?Summing up the whole trip it was excellent! We were welcomed in Sweden and Norway, there were high interest about our products and in each of the meet-ing new opportuni�es arise. If it was not to sell our exis�ng product lines, then to produce other type of products according to the wishes of client - displays, carboard boxes, etc.

In addi�on, a�er the visits we have decided to co-op-erate with one Swedish partner in other way – to take their started business in Sweden and begin a franchise business here in Latvia. Es�ma�ng from this perspec-�ve, the trade mission was very produc�ve, as there are plenty of opportuni�es which came in our way. Of course, the real result will be seen only later on.

What is the main learning? In each country the nego�a�on about prices are differ-ent, which we did not know in advance. In Sweden for example the prac�ce is to automa�cally take half of the price and only then the price is fine for them. We did not know that in advance and were not prepared for that kind of price reduc�on, thus now a�er the mee�ng we are working to get the price back to the normal level, as it is in reality for us. Moreover, the other learning was not to take it headlong, despite the fact how a�rac�ve the offer sounds. Firstly, the idea of coopera�on have to be considered, the benefits and challenges have to be weighted and only then it is possible to sign something which will influence whole future.

What are the next steps? We are going to con�nue the current follow up phase and discussions regarding the specific ac�ons – test orders, volumes, Annahouse presenta�on in interna-�onal toy fairs. In the middle of next year we are going to be able to think of star�ng work in new markets.

How would you describe Gateway-Baltic work? The work is done in qualita�ve manner, the mee�ngs were organized in the right order, the contact persons were selected perfectly – mainly owners of the compa-ny, which is very important when communica�ng futher and discussing future coopera�on.

Q& A

Agnese Irbe, director of Anna House, has just returned froma week long busines trip in Sweden and Norway.

Agnese shares her impressions about business possibilities in Scandinavian market.

GatewayNews- your Gateway to new markets

Tartu Science Park is the oldest science park in the Bal�cs and is celebra�ng soon our 20th birthday. During these years, we have valued and supported business innova�on ac�vi�es in the region

by networking with universi�es, public and private sector.

In our business incubator we provide modern and safe environment for technology oriented and knowl-edge-intensive start-ups to formalize their innova�ve business ideas into solid business plans and to advise companies in efficient execu�on of their plans. Since we understand that ideas and plans are only part of the way to success, that star�ng companies o�en need something real to present to poten�al partners, we have something really useful to visualize a�rac�ve quality products with great design, so they won’t stay only on paper.

Through EU Estonia-Latvia Programme coopera�on project „Protolab Network“ with Ventspils University Col-lege and Ogre Business and Innova�on Incubator in autumn 2009 three prototyping centres were opened, one of them in Tartu Science Park and two in Latvia. Protolab Tartu is focused on precision mechanics and has produced over 200 different prototypes already for companies and universi�es in Estonia as well abroad. In November 2011 we plan to open Nanolab, unique clean-room centre in Bal�cs for R&D in nanotechnology.

What will be EUR impact on Estonian economy?

It’s easy to make the first step!www.sciencepark.ee

GatewayNews- your Gateway to new markets

„Being in euro zone definitely reduces currency transac�on costs and makes interna�onal busi-ness in Estonia easier. Even more important it confirms that Estonia could actually comply with the strict criteria of euro zone membership like keeping the budget balance and controlling in-fla�on – showing that Estonia has credible and promising economy.”

Peter Gornischeff Director of Services Estonian Chamber of Commerce and Industry

„Joining the euro zone will definitely support the growth of the Estonian compe�-�veness and economic stability. It makes it smoother and cheaper for the Estonian companies to do their business interna�onally and that is the core of technology businesses, i.e. Tehnopol client companies.

It will also increase the confidence of foreign investors in our economy, as invest-ing money in Estonia will become easier and safer. Tehnopol is here to help tech-nology based companies to invest here and bring their development divisions

or sales parts for the Bal�cs, Russia and/or Scandi-navia to Estonia. We work as a one-stop-shop for star�ng their business in Estonia adding the entrance of the relevant networks form day one on top of it” Kulle Tarnov, Head of Business Service Unit, TehnopolGatewayBaltic runs

export seminar at Tartu

Science Park on January

28th, 2011

Becoming a member of Irish Exporters AssociationAlthough Ireland’s economy is undergoing tuff economic times, the international trade and export will be drivers for economic recovery. GatewayBaltic has become a member of Irish Exporters Association with aim to support Irish exporters in new market development, with focus on Nordic Europe, Baltic countries and Russia.

Germany here we come!Germany is among the top export markets for Baltic countries. This year we have started to offer also German market to our custom-ers in Baltic States. To be able to serve the German market, we have expanded our team with German market specialist – Dace Kirhe.

Dace has been living and working in Ger-many and has strong competencies in Ger-man market. Recently we have been working with five companies from different industries which are targeting German market: bio cosmetics, design candles, printing company, metalworking production company, as well as water and heat installation company.

Kicking off the Lithuanian marketOur strategy is to develop our presence in Lithuanian and Estonian markets and leverage on our expertise to support local companies with our Market Intel-ligence and Export Intelligence services.

One of our partners in Lithuania, is RVS Consulting which is a corporate finance consulting and credit insurance company from Vilnius.

Together with the partner, we have served a bitumen roof top producer in Klaipeda, Lithuania, MIDA in the part-ner attraction in Norway. Mida is the only factory in the Baltic States produc-ing polymer bitumen roofing products:competing internationally with such brands as Icopal and Isola.

GermanyLithuania

BelarusIreland

We not only service new markets for our clients, but also export our knowledge and exper-

tise to Norway, Finland, Sweden, Estonia, Lithuania, Ger-many, UK, Czech Republic, Belarus, Spain and Poland.

Undiscovered BelarusBelarus is a market of 15 mill inhabitants laying between Latvia, Lithuania and Poland on one side and Russia and Ukraine on the other side. Although, market economy is still a discussable subject in Belarus, the market is attrac-tive with its size, economic development and undiscov-ered market niches. As a potential export market, Belarus is interesting not only for Baltic companies, but also for European enterprises.

This autumn, we are bringing four Latvian companies from construction industry segment to Belarus to intro-duce them to potential partners in Belarus. The project is financed by Latvian Investment and Development Agency as a part of foreign market entry support to Latvian enterprises.

Expanding geography

GatewayNews- your Gateway to new markets

This year we have added some interna�on-al names to our client list: Saint Gobain is among leading companies within construc-�on material produc�on. Saint Gobain was interested in researching consumer behav-iour and decision driving factors for private house builders in Latvia and Lithuania.

Pilot Pen is one of the leading pen produc-ers in world. This autumn Pilot Pen was in-terested to be�er understand their market posi�on in Bal�c States and turned to us for market intelligence for Bal�c States.

Global brands chooses GatewayBaltic

Nomination to Swedish Business AwardsWe are proud to be awarded as fastest growing Swedish company in Latvia. In the ceremony on 23rd of November, GatewayBaltic received. the awarded for the growth of 28% in 2009.

Inese Andersone says „To reach such a growth in the turnover last year, and even higher this year would not been possible without having a team with strong players which are striving for excellence in everything and have an ap-

proach that anything is possible! Thank you and let’s reach new horizons!”

Exporting our service!

Wales Trade Mission to Russia GatewayBaltic has been leveraging on the strategic value of Baltic States. This autumn we supported five Welsh companies’ busi-ness entry to Russia by organizing a trade visit to potential partners.

Comments from the participants:

“All meetings went extremely well and were very constructive, resulting in received firm enquiries from all three companies”.

“Thank you very much, this has been an excellent service.”

Awarded as an expert Inese Andersone was nom-inated among the ten ex-perts for Latvian Chamber of Commerce and Industry and received an award for her contribution to development of export climate in Latvia. The award ceremony took place during the Chamber member confer-ence on 11th of November, 2010.

GatewayNews- your Gateway to new marketsrecognition

at home and abroad

Inese Andersone had opportunity to par�cipate in mini-MBA study programme Strategic Management Programme organized by SSE Riga Execu�ve Educa�on. Dur-

ing the two week programme execu�ves from Bal�c States were guided through the four main topics of leading enterprise – Marke�ng, HR and change manage-

ment, Finance and Strategy. Inese got inspired by a new learning experience:

„One of mine discoveries was Jack Welch, former leader of GE, approach of leader-ship and organization management. It inspired me to bring into our organiza-

tion for 4Es approach. 4E -stands for Energy, Edge, Engagement and Execution. These key words lie be-

hind our efforts in delivery added value to our clients and they will be base for our

success in future“.

Leaders make sure people not only see the vision, they

live and breathe it

Strategic Management Programme in 2011 will take place in 23rd May – 3rd June, 2011.

More informa�on at www.sseriga.edu.lv

GatewayBaltic- your Gateway to new markets

Contact us with your ideas, feedback and opinion!

www.gatewaybal�c.com