A virtual market entry in Romania of The BoxOffice, a company offering storage facilities

1. “I’m storing it!”
Katharina, Minh-Thi, Silje, Raphael, Alexandru

2. Our company
“I’m storing it!”
Medium-sized company
Established in Austria
Service: storage rooms
Saturation in the domestic
market
Competition: MyPlace

3. The International Market
ROMANIA
Use knowledge about local culture and mentality
Consumer behavior – 91.7% of household income
No in-house storage possibilities
Cultural profile:
Flexible and quick to adapt
Hard working
“I’m storing it!”

4. Cultural Profile
90
30
42
90
52
20
100
0
Hofstede Dimensions
“I’m storing it!”
Accepting
inequalities
Collectivistic
society
Preference
for avoiding
uncertainty
Culture of
restraint

5. “I’m storing it!” Entry Strategy
Foreign direct investment (FDI): subsidiary
 Greenfield investment (bulding, conversion into storage units)
Consulting company as „experts“:
 Find reliable construction company
 Risk management: insurance, security system & company
 Find qualified local managers
Mr. Caratas as intermediary

6. Entry Strategy
Competitor:
 Only in Bucharest
 Demand still growing
Culture of high Uncertainty Avoidance :
 Intermediary, consulting company, HCNs
 Choose well-known & trusted Romanian security company
 Marketing approaches:
 Free trial period
 Free moving boxes & service
“I’m storing it!”

7. Organization chart
Board of Directors
HR Marketing
Accounting &
Controlling
Boxes &
Maintainance
Business
Development
Romania
HR
Marketing
A & C
B & M
Mr. Zajac Mrs. Strand Mrs. Pinczolits
Mrs. Ngo Mr. Caratas
“I’m storing it!”

8. Environmental Analysis
Starting a business
Construction permits
“I’m storing it!”
Many procedures -> 287,0 days
Electricity
7 procedures, very expensive
Registering property
Getting credit
Depth of credit information index
Strength of legal rights index

9. Environmental Analysis
Protecting investors
Strength of protection index higher than in other E.E.C.
Paying taxes
39 times a year
Up to 43 %
Trade across borders
Enforcing contracts
Resolving insolvency
“I’m storing it!”

10. Possible Communication
Problems
Translation
German -> English -> Romanian
Different meanings
High context culture
Meet in person
“I’m storing it!”

11. Possible Communication
Problems
Time-oriented differences
Polychronic vs. Monochronic
Accept and adjust
Avoid judgemental reactions and
stereotyping
Employees should be taught
about the cultural differences
“I’m storing it!”

12. Potential Concerns
and Solutions
Fear of exploitation
Insecurity
Storage insurance
Strict regulations of over hours and payment
Corporate social responsibility
“I’m storing it!”

13. Future development
“I’m storing it!”
Outsource to Romania
HR
Accounting
Call Center &
Customer Service
Expansion to neighbor
countries

14. Thank you for your
attention!!!!
Questions
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