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Gain valuable insights into business practices in Russia from a seasoned professional with extensive overseas experience, market entry strategies, clinical services, conferences, investments, and survival tactics. Explore challenges, growth strategies, and current market dynamics.
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Business in Russia Lance Erickson Assistant Director Center for Slavic and East European Studies
Initial thoughts • What is the first thing that comes to mind when talking about Russia? • What are your first impressions of business practices in Russia?
Center for Slavic and East European Studies • US Department of Education funded Title VI NRC • Provide support to all OSU students, faculty and programs • Support all Ohio universities, businesses, communities • FLAS • Outreach • Support
Center for Slavic and East European Studies • Oxley Hall 303 • Career Services • Job search, internships in-country, recruiter visits • Conferences, discussion groups • Cultural events • Language maintenance and support • Language tables, video library, lectures
Personal background • Russian and East European Institute, Indiana University (2005 - 2007) ~ top ranked program in US • BA, Political Science, Russian & East European Studies, University of Illinois • MA, Russian, East European and Eurasian Studies, University of Texas • Languages studied: Spanish, French, German, Portuguese, Italian, Russian, Swedish, Ukrainian, Lithuanian
Overseas work experience • Sidvim and the Chicago Center (1997 – 1999, 2001 – 2005) • Lived in Moscow, Russia; Kyiv, Ukraine; and Vilnius, Lithuania • Traveled for business to… • Russia: St. Pete, Kaliningrad, Chelyabinsk, Nizhny Novgorod, Ekaterinburg, Irkutsk, Vladivostok • Ukraine: Lviv, Donetsk, Lugansk, Simferopol, Yalta • Lithuania: Kaunas, Panevesys, Utena, Klaipeda • Latvia: Riga • Estonia: Tallinn • Kazakhstan: Almaty, Astana, Karaganda • Austria, Belgium, France, Germany, and Sweden
Role within the company • Manager of Faculty and Supplier Relations • Marketing Support Manager • Country Director – Ukraine • Regional Marketing Manager • Regional Marketing and Sales Manager • Director – Ukraine and Baltic offices
Sidvim / Chicago Center • Private, Chicago-based • Origins: Siemens India, Universal Healthcare • Computers / Med Tech • Conferences • University of Chicago, Loyola University, Northwestern University, University of Illinois at Chicago
Market entry • Dental market overview • Private vs. state-run • Cosmetic demand • Products available • Educational contacts • Training seminars • Conferences • Educational tours
Initial business plan • Strategy • Courses • Treatment • Rented facilities • Pricing • Inventory • Staffing • Problems • Establishing market • Providing follow up • Staffing • Breaking old habits
Clinical services • Higher profit margin • Client referrals • Time spent working vs. teaching • Bringing in product • Success rate of difficult cases • Need to establish clinic for continued growth
Conferences • International • Need for new and expanded fields • Increase network of contacts • Promote opportunities to western vendors • More competition on the market • Pricing concerns
Investment in clinic • Build state-of-the-art clinic • Combine with sales offices and training facility • Materials purchased in US and shipped • Key location • Set trend for private clinics in the market • Expenses and debt rose significantly • Ever increasing competition
Crash... • Economy crashed in 1998 • Business struggles • Market empties • State of the economy • Bank defaults • Consumer market
Survival and Expansion • Stayed in market • Explored opportunities in Ukraine • Moved into Ukraine, Baltics and Kazakhstan • Moscow served entire region • Strain on resources
Conferences and Growth • Moscow • EAO • Las Vegas • Siberian Tour • Logistical nightmare • Kazakh Tour
Headaches began… • Trouble in the office • Differing objectives • Staff purge • Client theft • Start of gray market • Renewed customer service • Client visits, visits, and more visits • New pricing structure
Move to Ukraine / Lithuania • Russia stabilized • Young markets struggling • Key clients • Conference in Yalta • Baltic market and EU entry
Struggles • Market competition • Pricing issues • Stock • Moscow always as priority • Expansion to India • Changing regulations • Move to Grushevskovo • Corporate espionage and crime • Orange Revolution
Current situation • CCAD • Nobel Biocare Russia • Russia • Ukraine • Baltics • Kazakhstan • India • www.chicagocentre.com • www.nobelbiocare.com
Difficult business environment • Office management • Corruption and Blanket laws • Customs • Computer software • Registration • Company • Employee • Shift away from democracy • History and insecurity • Romanovs – Soviets – Yeltsin – Putin – Medvedev - ? • Democracy vs. Kleptocracy • WTO
Life as an Expat in Russia • Living conditions • Expenses • Travel • Time difference • Vacation time • Tight-knit community • Exciting political and business scenes
Are business skills enough? • Importance of language skills • Communication is key • Personal relationships • Networking • Importance of cultural knowledge • Know your customers • Understand the market • History, politics, arts, literature… • Regions vs. Moscow • Why so much corruption? • Why so much red tape?
What can I do to prepare? • EM course – amazing opportunity! • Work with Experts you have available at Fisher and OSU • Work closely with CIBER • Learn the language • Spend time in-country • Attend cultural events at OSU • Network with the local Russian community • Study the culture • Learn the language • Learn the language!
Questions?Contact CSEES at any time!Lance Ericksonerickson.107@osu.eduPhotos from CSEES, CIBER, CCAD, Nobel Biocare, and MicrosoftMap from CIA