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Published byMarion Lambert Modified over 9 years ago
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-The DACH market -Business development: past and present -Opportunities -Future plans -DACH subsidiary -Location -Setup and Structure -Business Strategy -Funding Opportunities -Staffing and Area Management -Timeline -Cost and Development Projection Agenda
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The DACH market CountryInhabitants (Million) Extension (sq km)GDP ( USD) Germany82.73570272.8 trillion Austria8.2838590.3 trillion Switzerland7.3412850.4 trillion United Kingdom592438202.3 trillion - Germany: 3 rd largest Microscopy Market estimated at 90-150 million GBP - Home market of two major microscope manufacturers (Leica, Zeiss) - Large micro-technology sector employing over 680000 people in total - Strong manufacturing sector in the areas of other optical technologies - Micro-technology market as a whole shows strong growth
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Prior in the DACH market
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Opportunities Growing the business in the 3 rd largest market for microscopy Further Establishing Prior as market leader in microscope automation Product Development through new OEM contracts Increasing Profits by selling directly Setting up local support structure
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Future DACH Subsidiary Advantages Local representation Better position against competition Local support and contact point Purpose Grow business and turnover Become important profit source for Prior Further establish Prior as market leader
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Location - Central Location in Germany - Good infrastructure - Important centre for optical industries - Long history as centre for optical innovation - Well known University - Fraunhofer and Max-Planck Institutes - Business Centre for Micro-Technologies www.tip-jena.de
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Setup and Structure Independent business entity GmbH (Gesellschaft mit beschränkter Haftung) –good reputation –legal form of choice for many traditional, privately owned businesses. –limited liability of all partners –ability to conclude contracts –ability to regulate profits by adjusting transfer prices from the UK –ability to invoice management charges from the UK and to thereby decrease tax liability in Germany
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Business Strategy OEM Accounts - Key Accounts - Product Development - Customer Focus End User Accounts - Product Range - Prior Brand Name - High Margin Distributors - Complete Solutions - Market Share - Marketing Regional Management - Regional Technical Sales Specialists - Key Account Management - Jena Office Technical Support - German Language, OEM capacity Marketing: German Language Literature, Website, Manuals Marketing Partner, Dedicated Campaigns
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Funding Opportunities EU funding 50% of total payroll for 2 years Eligible if locating in Eastern Germany Availability of funding confirmed by consultancy before setup Local funding Up to 70% of rental cost for 3 years when setting up in Jena Technology Centre Access to workshop, meeting rooms and other facilities
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Staffing and Area Management Jena Office: H. Ruchatz Technical Support Specialist Sales Administrator Field Based Sales Specialists: North/West: Dortmund South: Munich
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Timeline 456789101112123 20072008 Business Strategy Finalised Start legal process of setting up GmbH GmbH registered, start of EU funding application Office Opening Staff Recruitment EU funding strategy approved
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Cost and Development DACH Turnover and Forecast 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 1000000 GBP Turnover 140000200000340000420000540000690000880000 2004/52005/62006/72007/82008/92009/102010/11 42.527.827.528.623.570% growth
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Quarterly Sales Forecast
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Break Even Analysis Year 1
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Break Even Analysis Year 1-4
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DACH Profit Forecast GBP2007/82008/92009/102010/11 Q1219691126820069.54650 Q2-17525-10144.511519.510050 Q3-11081406717679.537882.5 Q413855.518029.511147.520257.5 Total17191.5332206041672840 Turnover420000540000690000880000 % of TO4.16.28.88.3 Transfer to Prior Ltd.46620585007200090000 Subsidies44280111960680160
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Summary Sales in DACH have risen by 70% last year Very good potential for growth in 3 rd largest microscopy market Local subsidiary based in Jena to open September 2007 New subsidiary will be profitable in 1 st year and subsequent years Early recruitment of sales and support staff possible through EU funding schemes
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