1. Katarzyna Dziewanowska, PhD Faculty of Management Warsaw University 1

2. Area: 312,679 km2 Population: 38.1 million Men: 48.3% Women: 51.7%

3. Data20042005200620072008 GDP (bn PLN)9259831,0601,1751,266 GDP change (previous year=100) 105.3103.6106.2106.7104.8 FDI inflow (mln €)10,2378,33015,74116,67410,970 Unemployment rate (%)19.017.614.811.29.5 Exports (mln €)65,84777,56293,406105,893114,566 Imports (mln €)70,39979,80498,945118,262139,329 Inflation rate (previous year=100) 103.5102.1101.0102.5104.5

4.  Employment : ◦ Micro: up to 10 people, Small: up to 50, Medium: up to 250  Net income: ◦ Micro: up to € 2 m, Small: up to € 10 m, Medium: up to € 50m  Assets: ◦ Micro: up to € 2 m, Small: up to € 10 m, Medium: up to € 43m 4

5. The importance of SME in Poland:  They constitute 99% of operators (95% in other OECD countries)  They provide 68,4% of GDP  They employ 64,3% working people (60-70% in other OECD countries)  They generate over 45% of export (25-35% in other OECD countries) 5

6. YearTotal0-910-4950-249SME Share (%) 20043468,23302,4131,528,999,84 20053581,63410,2138,028,399,86 20063576,83402,2141,528,399,87 20073615,63436,8145,728,399,87 20083636,03455,6147,428,499,87

7.  Resources  Strategy development  Organizational structure  Risk-taking  Flexibility  Sources of market information 7

8.  Hidden Champion  Cooperation  Anonymous Contractor  Born Global 8

9. 1. Building a position on local market 2. Careful selection of foreign markets – a few 3. Careful selection of foreign business partner 4. Building a strong brand 5. Careful segmentation process and segment selection 6. Marketing mix adjusted to foreign markets’ needs 9

10.  Ambitious!!!  Takes advantage of SME’s strengths  Full control  Gradual involvement  Costs, costs, costs!  Time-consuming  Risky… 10

11. 70%

13. 1. Horizontal integration of producers 2. Building a strong brand (common or regional) on local and foreign markets 3. Other decisions relating to foreign markets are made by a joint company 13

14.  Position on markets based on common/ regional brand  Cheaper and less risky  Members do not compete against each other  Common company may take over the control  Less flexible  Works only for homogeneous products 14

15. 15 Mazovia FruitFresh Fruit Poland Group

16. Internationalization  Fast and parallel on many markets  Pro-active motives for entering FM Competition  Innovative and high quality product  Close relationships with clients  Building a network with international partners  Building a strong brand  Market segmentation – focus on a niche  Highly standardized marketing mix Owner 16

17.  Ambitious!!!  Takes advantage of SME’s strengths  Full control  Becomes a part of marketing network  Costs  Profits in long term  Risky  Requires highly innovative products 17

18. 18

19. 1. Careful selection of partners (local or foreign) 2. Market selection is of secondary importance 3. Focus on production efficiency and low costs 4. Almost all marketing activities are done by a partner 19

20.  Easier and cheaper  Product matches the market needs  Low risk in short term  Beginning of more adventurous activities  Passive – no experience gained  No relations with final customers  Long term risk  Low profit per unit  Weak negotiation position 20

22. Syntex Romeo Zbąszyń