slide1
Download
Skip this Video
Download Presentation
Ing. Petr Král,Ph.D. Department of International Trade Krakow , 10 June 2008

Loading in 2 Seconds...

play fullscreen
1 / 9

Ing. Petr Král,Ph.D. Department of International Trade Krakow , 10 June 2008 - PowerPoint PPT Presentation


  • 74 Views
  • Uploaded on

Virtual Office as an E-based Mode of Entry to Foreign Markets Suitable for Small and Medium Companies from Central Europe. Ing. Petr Král,Ph.D. Department of International Trade Krakow , 10 June 2008. Outline. Background Introduction Virtual office as a marketing tool Case studies

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Ing. Petr Král,Ph.D. Department of International Trade Krakow , 10 June 2008' - graham-mcneil


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Virtual Office as an E-based Mode of Entry to Foreign Markets Suitable for Small and Medium Companies from Central Europe

Ing. Petr Král,Ph.D.

Department of International Trade

Krakow, 10June 2008

outline
Outline
  • Background
  • Introduction
  • Virtual office as a marketing tool
  • Case studies
  • Summary
background
Background
  • Small and medium companies are under pressure:
    • Salaries grow relatively fast:
      • Average salary 900 EUR/ month
      • Increased for 10,4 %
  • Appreciation of the Czech currency
    • 1999: 1 EUR = 36,882 CZK
    • 2007: 1 EUR = 26,73 CZK
    • Yesterday: 1 EUR = 24,655 CZK
  • Czech SMEs are losing competitiveness
competitiveness of czech smes on the european market
Strengths:

Flexible response to market changes

Individual customer care

Personal enthusiasm of the owners

Ability to operate small market segments effectively

Weaknesses:

Capital resources

Market knowledge

Main competitive advantage- Price

Marketing

Marketing communications

Advertising

Competitiveness of Czech SMEs on the European market

Based on research: EU Entry from the point of view of managers of small and medium companies, University of Economics, Prague, 2004

introduction
Introduction
  • Relatively young marketing tool
  • Almost no interest from researchers
    • Presentation based on my own experience and field research
  • Sometimes called mailbox companies
    • Rather negative impression
  • Some similarities with call- centers
  • Virtual office = specific entry mode to foreign market, marketing communication tool
  • Definition of virtual office (outsourced foreign representation of the company)
virtual office as a marketing tool how it works
Virtual office as a marketing tool- how it works?
  • Capital- intensive mode of entry
  • Communications´ tool:
    • Personal selling
    • Public relations
  • Ex: Business Center Regensburg
    • 130 companies from different countries
    • Just 22 offices
    • Back office and call- center service provided by four assistants
    • Main advantage: Cost sharing, cross- cultural knowledge
    • Monthly costs for one company: 79 EUR

Source: Personal interviews with the owner of BCR Mr. Schießl

case studies
Czech Producer:

Well established producer of wiring systems

Fully owned subsidiaries abroad

New concept for German market

Objective: to overtake existing wholesaler

Result: Succeeded

Total costs: 7000 EUR

Slovak Service Provider:

Planning and designing industrial networks

Outsourcing solutions

Some projects already in the German market

Objective: To enter the German market

Result: Did not succeed

Total costs: 6.000 EUR

Case studies
conclusions
Conclusions
  • Virtual office:
    • Mode of entry
    • Marketing communication\'s tool
    • Market research (market test)
  • Advantages:
    • Lower costs = lower risk
    • Cross- cultural competence and knowledge
    • Direct presence on the foreign market
  • Success factors:
    • Strategy
    • Organization and calculations created in advance
  • Suitable for:
    • Small and medium companies
    • Sectors: B2B, E- business, IT, E- shops….
thank you for your kind attention

Thank you for your kind attention!

Ing. Petr Král, Ph.D.

Department of International Trade

E-mail: [email protected]

ad