More and more Polish companies are seeing their chances for growth in international expansion. Nearly half of the firms operating on foreign markets are conducting business in at least three countries. Domestic entrepreneurs feel at ease abroad and don't have complexes vis-a-vis their competitors, regardless of whether they are large corporations or local firms. Nearly 90% of them think that they are just as or even more innovative than the competition and in the majority of cases (56%) focus on quality more than on price, according to a survey by the Kronenberg Foundation at Citi Handlowy.
Polish companies are not only increasingly willing to enter foreign markets, but they are also doing increasingly well on them. The country most often chosen by them remains Germany. In comparison with 2014, the activities of domestic entrepreneurs on the territory of our western neighbor grew by 7%, while the Czech Republic was in second place. France and Lithuania are becoming increasingly popular, while in comparison to last year, interest in the Russian market fell by 4%.
"Polish companies want to develop on foreign markets and are not afraid to carry out expansion," says Piotr Kosno, Managing Director, Department of Strategic Clients at Citi Handlowy. "Their competitive advantage consists mainly of quality, which is a result of the strategic and long-term building up of their positions on foreign markets. Price competition remains a tactical activity, but of lesser significance compared to quality. Polish entrepreneurs are increasingly effective in the international environment. Last year, which has seen plenty of geopolitical challenges, has shown that Poles can manage quite well in the international environment and are adapting to market conditions in a flexible way. They recognize and appreciate the conveniences associated with the EU single market, especially in the context of legal regulations and ease of doing business. Another important factor is the continuous evolution of innovativeness."
The basic strategy for activity on the international market is to concentrate on growth of turnover as well as increasing profitability (more often it is companies with low turnover that use this strategy - 62%). The quality of products is also important; only 41% gain a market through price. Every fifth company flexibly reacts to dynamically changing market conditions. The majority of Polish entrepreneurs don't take over local firms (only a little over 20% of them do this) and try to find partners for cooperation among domestic businesses. For over half of them, the basic goal of their activities is to gain new customers.
The biggest barrier that companies face in the context of expansion abroad is large-scale competition. This, however, does not prevent 41% from planning an expansion of their activities. There are 2% more of those who are planning expansion than in the previous year.
With whom do Polish companies compete? This depends on the size of the firm: those employing from 10 to 50 workers often compete with small companies on local markets in the traditional manner. Companies with a larger workforce mainly compete with large, modern corporations. The main motive is company growth in a broad sense - expanding the scope of activities, gaining new customers (36%), and increasing revenues (23%).
Surveys by the Kronenberg Foundation at Citi Handlowy accompany the second edition of the Emerging Market Champions competition. "It is addressed to Polish companies that are successful beyond the borders of our country, and also to entities from emerging markets investing in Poland. By awarding Polish and foreign firms, we would like their activities to become an example and a motivation for expansion for other entrepreneurs," stresses Krzysztof Kaczmar, President of the Kronenberg Foundation at Citi Handlowy. The award ceremony will take place on October 1 at 12:00 as part of the European Forum for New Ideas during a panel discussion on "the world economy in times of uncertainty".
