Why UK businesses should consider Central Europe for their international development:
- Size – relating to the current and future market size and economic growth rates of a specified country. Larger countries inevitably demonstrate most appeal – Poland would be the prime example amongst the CE Region countries.
- Strong margins – the pent-up aspiration and appeal of goods and services never or rarely readily accessible to consumers, industry and public sector organisations prior to 1989 and latterly, 2004 (on accession to the EU) has created and still creates a demand which, for the most part, enables pricing structure which offers strong margins to the manufacturer or supplier.
- Stability – entry into the EU has given the Central European countries a political, legal and monetary stability attractive to companies looking to enter and develop in these countries. In addition, transparency and corruption issues have to be resolved as pre-requisites for joining and ongoing membership of the EU.
- Skills – availability of a highly skilled workforce at a lower cost than would otherwise be the case in Western Europe.
- Support – all of the business support services that an incoming company could need e.g. financial and legal services etc. are readily available on the ground throughout the CE region.
- Suppliers – of low-cost services and products to enable efficient outsourcing from e.g. UK manufacturers into Central Europe can be found across numerous industry sectors. In addition, the geographical proximity of these items also adds to their attractiveness.
- Safety – Transparency and safety of international operations carried out in the target region or country resulting from a stable legal system and effective law enforcement.
- Springboard effect – utilising a country such as Poland (an EU member country) as a base from which to “springboard” commercially into neighbouring countries which are more challenging to operate within.
Eight S Formula1 applied to Central Europe.
1 Kozminski, A.K.(1995). “Lessons from re-structuring of post-communist enterprises”, in D.P. Cushman and S.S. King (eds) Communicating Orgnisational Change: A Management Perspective (Albany, NY: State University of New York Press) pp.311-328
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