Moda Textile Factory: Bishkek, Kyrgyzstan. 1. How have Sergei and Olga’s lives change in Soviet days? Are their lives better?
After the collapse of Soviet Union, Kyrgyzstan’s economics was slowdown since they was moving to market-based economy. Sergei and his wife lost their job and moved to capital. They borrowed money from family and friends starting business outside of the capital. After long period of time doing business over China, India, and Turkey, they did a better job and had enough capital for a largest department store in town. Their business was getting better and they built their own sewing factory of high quality apparel. The clients are wholesale traders who sold their goods to retailers in Kazakhstan and Russia. They…show more content… Multinational companies, who is currently working in the local market because they might have experience of a foreigner entering that market. Finding partners they can just is not easy and takes a lot of time. Therefore, they should take business trip to that area, do some market research about it, and start a small contract with some partners. They need time to adapt to new environment and know what their partners benefits from their business. And they can expand their business gradually when they know the partner and the market better.
4. How can Sergei and Olga begin producing fashionable women’s cashmere coats in their factory? Is this feasible or should they give up the dream? Propose an action plan to move their business in this direction.
Sergei and Olga could produce the fashionable women’s cashmere coats as their dream. First of all, they should find out target market for the women’s cashmere coats since the market in Kyrgyzstan is too small to develop. The countries like USA, Russian, or Europe are good choice since they have stable politics and provide more information to foreign traders. Secondly, they may want to find some partners, who understand the local markets to help them start with small contracts. They should get familiar to transportation, tax system, special policies, and culture of these markets. After 1 or 2 years working in different markets, they would