Poland is the sixth-largest country in Europe. After 15 years of courageous economic and political reforms, Poland has strengthened its position as one of the fastest growing countries of central and Eastern Europe. As a member of the EU, NATO and OECD, Poland is a trustworthy and reliable partner for international business. With wage rates among the lowest in the EU, excellent location and a sizeable market, Poland will continue to attract substantial new private investments over the next several years, and show sustained growth in consumer spending. In addition, Poland will likely continue receiving economic and moral support from Western Europe as well as Canada and the United States. The telecommunications market was completely liberalized in 2002. Since the beginning of the 90s, Poland's telecommunication market has developed very rapidly as one of the most dynamic markets in Central and Eastern Europe. Poland is targeted as a niche market for manufacturing mobile phones. In this case, we will show the strengths and the weaknesses of the Polish economy. Secondly, we will move on to the best strategies to enter this emerging market. The last part deals with the mobile market in Poland and offers expert advice to attain business success in that market for a company.
[...] This change is supported by both privatisation of the economy (including the telecommunication sector) and liberalisation of the telecommunication market. The overall telecommunications market in 1999 was estimated at billion, with telecommunications services estimated at $ 4.8 billion. The value of the services market is growing at a rate of approximately 16% per year, with the cellular segment experiencing 45% growth. Despite huge investments over the last ten years, the Polish telephone infrastructure, with a telephone density of 26 telephones per 100 inhabitants, is still far behind other European countries. Cellular penetration is 10% (versus in the U.S.). [...]
[...] The lowest wage level of Poland among the EU nations attracts many investors. In addition, products manufactured in Poland are sold without paying taxes in the EU. EU integration creates new opportunities for foreign investors in Poland (Polish economic and commercial department, New York): They gain unlimited access to the single market of over 460 million customers Poland will be the single largest beneficiary of EU aid among the acceding countries, Polish law will be further harmonised with acquis communautaire, making the legal environment fully compatible with Western standards, EU membership guarantees stability and dynamic development. [...]
[...] Large concerns can afford to buy reports of the world's consulting companies. Small firms cannot cover the costs of market surveys. Lack of highly skilled employees in logistics. This situation relates in the first place to firms offering their products on global markets. In an absence of good logistics the costs of logistics in the case of global production of tens of thousand products a day may cause serious losses. Very weak electronic components base. This refers in particular to classic electronic elements (transistors, diodes, integrated circuits, etc.). [...]
[...] Conclusion Our mobile phone company can take advantage of the Poland's economic situation, because there appears to be no strong competition in this niche market. As the post communist countries continue to struggle in their transition to a market economy, we will have to increase our productivity if we hope to compete with other companies. Another raison for our company interest in setting up operations in Poland is that the price of labour is still relatively low. Other nearby countries have lower wage rates, but Poland has a cadre of well-trained factory workers who could be recruited. [...]
[...] Another problem in Poland is the amount of government control. Traditionally, companies from around the world refused to do business in Eastern European countries with central planning economies. The recent relaxing of the trade rules and move toward free-market economies in the republics of the former Soviet Union and the other Eastern Europe nations, however , have encouraged companies to rethink their positions; more and more are making moves into this largely untapped part of the global market. Poland is now a democracy: a multi-party republic with a two-chamber parliament. [...]
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