Why to invest in the markets of New Europe?
Increase sales
- Significantly increase turnover of the company into new markets
- Use investments in one or several of these countries as a platform for sale to other markets of Central and Eastern Europe
- Increasing the share of European market
Improve service to customers and image
- To increase proximity of markets in Central and Eastern Europe and to deepen their knowledge
- Greater agility to react to requirements of customers in Central Europe due to geographic location (including countries such as Germany)
- To improve international image of the company and to show greater commitment to international customers
Achieve cost reduction
- Advantage of lower local costs
- Support for better procurement strategy
- Take advantage of highly skilled technical environment, labor flexibility and low labor conflicts
Increased use of company assets
- Use of depreciable assets (machinery, etc.)
- Use of debt capacity to generate investment return above cost of capital
- To take advantage of trend towards higher local property markets
International investment to diversify risks
- Operations in different markets help reduce risks of operation in specific local markets. Traditionally, the Spanish company has invested mostly in Latin America, an area that is not exempt from economic crisis and high exchange rate uncertainty.
- Investment in countries of Central and Eastern Europe can also help lessen risks of agregate investment in the area. For example, significant risks still retail in countries like Russia, Ukraine, etc...