Page 48 - Countertrade
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e) Clearly identifying the market location
Enterprise 13’s customers were chiefly in the Moscow area although
some customers were in other conurbations such as St Petersburg.
There were about ten competitors in the main product area of furniture
accessories (hinges). These firms had furniture factories employing able
bodied workers. The Enterprise 13 management believed that their own
products were of better quality than the competition. A similar view had
been held in 1992 about the quality of output of the one competitor in the
production of micro switches.
Conclusion
Alexander’s solution to the problems by which he was beset was to seek
new markets and introduce new products. He established a marketing
department. A computer system was introduced to monitor and control
distribution and to record and classify customers. A definite move was
made to identify and approach furniture makers with a view to supplying
them with hinges. Advertisements were placed in newspapers and on
television and radio and leaflets were published.
His efforts were boosted by further legislation passed on 10th February
1995 in which government support was pledged for the disabled of all
categories. Of particular benefit was the guarantee of favourable tax
rates, including some exemptions.
