From Poland to India: a Toy Company’s Transition
ZABAWA LLC | FROM POLAND TO INDIA | A TOY COMPANY’S TRANSITION | Prepared For: Professor Ligia Maura Costa | Prepared By: Daniel BarmaschEric SnoddyMarco MichelNatalia BieszczaninSylwia Przeplata April 16, 2012 | | 1. Description of the Company 2 History 2 Structure of the Company 3 Product Description 3 2. Justifying International Expansion 4 3. Choosing a Country: PESTEL 6 Political Factors 7 Economic Factors 8 Socio-Cultural Factors 9 Technological Factors 10 Ecological Factors 11 Legal Factors 11 4. Modes of Entry 13 5. The Ten year plan 17 Bibliography 20
1. Description of the Company
History
Zabawa Sp. Z o.o. (Limited Liability Company) is a Poland based firm established in 1989 after the transformation from a centrally planned economy to capitalism. The company’s name, Zabawa, means ‘fun’ in Polish and is strikes as dynamic and robust toy company, largely contrasting other firms of pre-1990. Through the years, Zabawa positioned itself in white spaces of the market by beginning to develop educational toys and in hope to grasp untouched markets. Indeed soon after the fall of Communism, the Polish market presented particularly high returns in almost any branches of economy, as the consumer industry has not been created yet; since then Zabawa has continuously grown in size, revenues, and reputation. At its creation, Zabawa was a toy retailer for young children, though the brand quickly conveyed and took on the image of ‘Rubik’s Cubes’ from Hungary, where it was originally invented and produced; indeed, the cube represented 57% of sales’ revenue after the second year of business. However, a short 5-year period allowed Zabawa to grow steadily and establish a strong domestic network, one that can easily be tapped. In 1994, Zabawa re-established company objectives and entered the toy manufacturing business, led by a potential internal breakthrough innovation in the
1. Description of the Company
History
Zabawa Sp. Z o.o. (Limited Liability Company) is a Poland based firm established in 1989 after the transformation from a centrally planned economy to capitalism. The company’s name, Zabawa, means ‘fun’ in Polish and is strikes as dynamic and robust toy company, largely contrasting other firms of pre-1990. Through the years, Zabawa positioned itself in white spaces of the market by beginning to develop educational toys and in hope to grasp untouched markets. Indeed soon after the fall of Communism, the Polish market presented particularly high returns in almost any branches of economy, as the consumer industry has not been created yet; since then Zabawa has continuously grown in size, revenues, and reputation. At its creation, Zabawa was a toy retailer for young children, though the brand quickly conveyed and took on the image of ‘Rubik’s Cubes’ from Hungary, where it was originally invented and produced; indeed, the cube represented 57% of sales’ revenue after the second year of business. However, a short 5-year period allowed Zabawa to grow steadily and establish a strong domestic network, one that can easily be tapped. In 1994, Zabawa re-established company objectives and entered the toy manufacturing business, led by a potential internal breakthrough innovation in the
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