Final Report Team 316 F Essay

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Executive summary “We visualise and develop creative educational tools that provoke inspirational activity and bring positive recurring stimuli for children in their learning process and creative play. We believe on the power of creative education.” – Innospark Our team has chosen Innospark, Lithuania, which is actually a new company who produces educational toys for young children. Education is very important aspect of each persons life, especially in this century, so having the children start their educational journey in the early age is very important. Growing bigger, becoming a competitor on the Lithuanian market, Innospark decides to go outside the local market and take a chance on different European markets. Us being able to…show more content…
This indicates that the Poland toys market represents a good opportunity for Innospark since consumers seem to be accepting global brands. Apart from increasing the customer base, exporting would also mean increased market share, and therefore increased profitability by lowering per unit cost. As per a general trend, an average order from international customer is often larger as compared to that from a domestic buyer. This means that exporting its toys can result in an increase in Innospark’s perceived size and stature. Additionally, it will also improve its competitive position, as compared to other similar-sized startups in its sector. Through growth in business, Innospark may also look at overseas licensing, franchising, or may even set up its production unit in Poland. Additionally, the educational toys that Innospark is offering are very unique and innovative in nature. This opportunity can be exploited by commanding greater profit margins in Poland than in Lithuania. Although Lithuania helped the export-oriented economy in avoiding exchange-rate fluctuation by pegging the Lithuanian currency (the Lithai) to the Euro in 2002, other fluctuations in the economy and business cycles cannot be avoided altogether. Diversifying the market is therefore a feasible option for Innospark to reduce the risks. Also, exporting the products to Poland will help put the idle capacity at work, which will help Innospark to enjoy pure
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