Marketing in Central and Eastern Europe

Erdener Kaynak

• Publisher: Routledge
• Year: 2014
• Print ISBN:
  9780789000392
• eBook ISBN:
  9781317948865
• Topic: Business
• Subtopic: Business General
• Index: Business

Since the sudden opening of the markets in Central and Eastern Europe (CEE) in 1989, there has been a growing need to investigate the fundamental changes occurring in the countries'marketing environment, the lucrative market opportunities created by the changes, and the inscrutable marketing practice followed by local and international companies. Marketing in Central and Eastern Europe helps you understand the changes taking place in these valuable and challenging markets and introduces you to the emerging opportunities and effective marketing strategies to be employed in the region. Researchers specializing in CEE business; managers of international companies operating in or contemplating entering CEE markets; and students studying CEE business, East-West business, or marketing in transitional economies will better understand the region by examining issues of cross-
cultural inquiry, commonality, and market segmentation. Marketing in Central and Eastern Europe also provides you with:

• a region-relevant market analysis to determine environmental dimensions of emerging markets
• a preliminary report on market-entry strategies in Poland
• an assessment of foreign direct investment opportunities in Hungary
• a study of Western-style marketing applied in transitional economies
• an analysis of marketization and Westernization used as classifying dimensions
• information on increasing the validity of post-command economy research and applicationAlthough the book's chapters cover a variety of topics and use different research approaches and methodologies, they have a common theme--there is a great interest in, and an equally great need to scientifically investigate, rapidly emerging market opportunities, marketing-environment issues, and marketing-strategy problems with respect to transitional economies of Central and Eastern Europe.

Market-Entry Strategies in Poland—A Preliminary Report

Shaukat Ali
Hafiz Mirza

SUMMARY. This paper reports findings of a study undertaken on market-entry strategies of UK firms in Poland. It presents a cross sectional profile of UK firms investing in Poland, their motives for entering the Polish market, and their entry strategies and assesses their performance in terms of their entry strategies and experiences with regard to financial, technological, marketing and strategic aspects. The paper compares the findings with international marketentry theory and concludes by examining managerial implications of the study. [Article copies available fo r a fe e from The Haworth Document Delivery Service: 1-800-342-9678. E-mail address: [email protected]]

INTRODUCTION

Following the collapse of communism in the late 1980s, Central and Eastern Europe opened up previously undreamed-of opportunities for Western firms. Virtually overnight, a vast market of huge potential suddenly opened up. Western Europe had on its doorstep a market larger than either the European Union or the USA, and one with a vast untapped potential.

It was generally believed that central to the strategy for releasing the vast potential of the region-to the benefit of the West and the East European countries—was co-operation. At the political level, this took the form of the Association Agreement signed, or under negotiation, between a number of the nations of Central and Eastern Europe and the European Union. These agreements will in time lead to the progressive trade liberalization across the whole of the new Europe, and in due course to a single market bordering Russia (Pinder, 1993; Tovias, 1994).

In addition, multinational institutions and their constituent governments have been actively providing know-how, expertise and finance to overcome difficulties associated with the inadequate framework—legal, fiscal and institutional—for business development in Central and Eastern Europe. Ample examples exist to support this, evidenced by the growing number of joint ventures with businesses from the West; in Western banks, investing directly in companies in Central Europe; and, in legal and accountancy firms, providing advice on such issues as privatization, etc., to the governments of the region. Also, it is widely accepted that the development of a healthy small and medium enterprise sector is essential for the creation of a market economy in the countries of Central and Eastern Europe. A vital role in this process is played by external investment, which brings with it much-needed management skills and technical know-how.

Since the transition to a free market economy, substantial foreign direct investment (FDI) has occurred in Central and Eastern Europe, both demand and supply led (Artisien et al., 1993; Buckley and Ghauri, 1994; Engholm, 1993; Howell, 1994; Johnson and Loveman, 1995; Paliwoda, 1995; Shama, 1995; Williams, 1993). Governments and local firms have been eager to benefit from transfers in capital, technology and managerial skills. Foreign firms, led by multinationals, have been eager to pursue new growth opportunities (Egan et al., 1995; Shama, 1995).

Companies seeking to expand into foreign markets have a choice of entry modes, ranging from exporting, licensing, franchising, management contracts, joint ventures, strategic alliances, and wholly-owned subsidiaries among others. These strategies are distinguished by the degree of investment and the risk-investment potential (Cateora, 1993; Paliwoda, 1993; Young et al., 1989). Existi...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• About the Editor
• Table of Contents
• Preface
• Introduction
• Increasing the Validity of Post Command Economy Research and Application
• Environmental Dimensions of Emerging Markets: Introducing a Region-Relevant Market Analysis Matrix
• Market-Entry Strategies in Poland–A Preliminary Report
• An Assessment of Foreign Direct Investment Opportunities in Hungary
• Can Westem-Style Marketing Be Applied in Transitional Economies? A Study of Consumer Bank Marketing in Poland
• Index