Estonia Ksenia Molchanova Yang Ke (Eric) Bennett Gackle

Demographics 1,307,605 people Growth rate of percent The average age in Estonia is 39.6 years – Romania = 36.1 years – Germany = 43.4 years – Finland = 41.8 years – United States = 36.7 years 69 percent of the population is living in urban areas.

Government Very stable. Parliamentary republic Gained its independence on August 21, 1991 Joined the European Union in Rated 17 th in the world for ease of doing business. No social unrest in the political structure.

Government (cont’d) Economic trade barriers are low. Huge openness to foreign direct investments. Many investment banks from foreign nations elect to set up firms within the countries borders. Analysts believe the Euro will not be adopted until – 1 United States Dollar = Estonian Krooni – 1 Euro = Estonian Krooni.

Economics

Economics (cont’d) GDP = $29.35 billion (in US Dollars) at purchasing power parity Growth rate = 7.1 percent per year GDP per capita in US Dollars is $21,100 per a 2007 estimate Inflation rate = 6.6 percent Unemployment rate = 4.7 percent

Economics (cont’d) Tourism is currently on the rise Growth in alternative sources for energy Growing disparity between Talinn and the rest of the country Incomes of Talinn are significantly higher than the rest of the nation

Economics (cont’d) Inflation rate must be reduced to 3 percent before the Euro can be introduced Apart of the World Trade Organization Tariffs were put in place to protect agricultural businesses

Economics (cont’d)

Physical Infrastructure Shipping goods by sea from the United States to Estonia is relatively easy and available. Gateway country to Russia and the city of St. Petersburg. The M-box can get a lot of exposure to both the Tallinn and Helsinki markets ports of both countries.

Physical Infrastructure (cont’d) 968 kilometers of railway stretch across Estonia. 56,856 kilometers of roadways in Estonia – 13,000 kilometers are paved – 99 kilometers paved as expressways 19 airports are scattered throughout the country (CIA Factbook). – 12 of these airports have paved runways – 7 have unpaved runways (CIA Factbook).

Communications Infrastructure Programmers designed the program Skype 382 phone lines per 1000 people. 1,236 cell phones per 1000 people. 483 computers per 1,000 people.

Communication Infrastructure (cont’d) 760,000 internet users Many bars, cafés, restaurants, and lounges offer Wi-Fi access 3 broadcast stations 93 percent of households own a television

Market Assessment The video game industry over the next five years will be explosive growth. In 2005, the global video game market revenue of 29 billion U.S. dollars, By 2011, global video game market will reach revenues of 44,billion U.S. dollars.

Market Assessment (cont’d) Sony PS3 and strong growth as well as the Nintendo Wii game consoles But our M-BOX shall become the most important competitor in the future global video game market Our M-BOX can be aimed at Europe and the South African markets

Market Assessment (cont’d) X-box game consoles market share = 17%. Sony Playstation market share = 68% by the end of 2004 Nintendo's market share = 15%. U.S. video game market sales of 179 billion U.S. dollars in 2006 increased by 43%.

Market Assessment (cont’d) Sony's PS3 game console sales of million units. Nintendo's Wii console sold million units. Xbox 360 game consoles sold million units.

Global Markets Finland Borders with Norway, Sweden, and Russia. Finland's population is 5,300,000. Most of the population is living in the southern part of a more moderate climate GDP in 2002 is 139,700,000,000 Euros, per capita GDP is 26,800 Euros.

Global Markets (cont’d) Finland, "the world's most competitive countries." Finland developed economy, per capita income, which is easily accessible, well- developed of network, the most important thing is our target market Estonia across the sea, to facilitate exchanges.

Global Markets (cont’d) Today, Finland is not only an economically developed country, but also a high-tech and well-developed information society and the world-famous. Finland adjusted their economic and technological development strategies, making them a world leader. Finland's information industry is in development

Global Markets (cont’d) Russia World economic power. GDP reached trillion U.S. dollars, ranking tenth in the world. Rich in natural resources for agricultural and industrial development. Computer industry, aerospace aviation industry, the rapid rise of high-tech industries, as well as a strong defense industry. Therefore, Russia will be another important M-BOX market.

Market Entry Strategies FDI Pricing Strategy Developing a home or “domestic” market within the country. Strong Marketing Strategy. European Markets—”fair game”. Gateway to Russia

Future Outlook/Potential Convert from the Estonia kroon to the Euro. More investments coming from Russia and Spain. Solid Investments from Sweden and Finland. Tense oil relations with Russia. Slumped sales, but will recover in the future.

Recommendations Short-term Translate manuals and console menus into Russian, Estonian, and English. Price below PS3 and Xbox 360. Improve advertising. Develop Distribution channels. Establish tech support specialists.

Recommendations Long-term Take advantage of future growth. Offer a wireless console. Integrate Skype software. Expand into Russia and Finland. Improve manufacturing efficiency.