13 specialists working with UKTI’s regional and global networks to raise the profile within the high growth markets of UK capabilities and to facilitate engagement by mid-corporate companies (employing 250+ employees)
Develop and implement a campaign to inform UK-based companies of HGM opportunities and how these can be accessed
Provide a more intensive level of support to targeted companies that will act as “trail blazers”
Recommend new UKTI research to underpin wider policy development on high growth markets.
Entry to WTO still not achieved – increasing transparency (Russia now rates better than China and India on business risk)
Widening national economic base beyond primary industry - issue of regeneration of older industries or concentrating on knowledge based economy
Expanding development to neglected areas of the country – notably the South and the related problem of ethnic minorities
Boston Matrix for Russia Ltd Adapted from “Foreign Direct Investment in Russia”, Paul Fischer, MacMillan 2000. US Department of Commerce Data Market Growth %/y Import Penetration 100% Cash cows Rising stars Problem Children Dogs GAS WOOD OIL TEXTILES CONSUMER ELECTRONICS WHITE GOODS BIOTECH ENVIRO PHARMA IT (Hardware and Software) TELECOMS 10% 0 FOOD DEFENCE MACHINERY METALS CARS FURNITURE CLOTHING AEROSPACE BUILDING MATERIALS CHEMICALS PAPER HEALTH CARE 1 10 100 RETAIL 19/05/10
Russian industry is retooling as 70% or equipment is now obsolete
Growth in economy has meant that formerly empty factories are now active often with new dynamic small companies
Defence factories are now moving into civil markets for oil and gas equipment and infrastructure projects
Aerospace- civil aircraft are now mostly imported but defence market strong and some new civil projects. Russian companies looking to work with foreign machining companies to win orders from Boeing and Airbus.
Oil and Gas – equipment and services market around $3.5B growing at 20% with 30% imports