The document discusses key success factors for entering foreign markets. It identifies challenges incumbents face from technological changes, regulation, and customers. Options for incumbents include organic growth, acquisitions, and integrating divisions. Entering new markets requires identifying opportunities, assessing required resources and strategy, and creating competitive advantages. Developing markets offer opportunities but also challenges around regulations and infrastructure. Macro factors like politics, economics, technology and society must be considered. Acquisitions can gain competitiveness but require post-integration to realize synergies. Key factors for success in Hungary include its market size, penetration rates, prices, regulatory environment, local management and incentives.

1. An Overview of Key Success Factors in Entering a Foreign Market Nicos M. Timotheou CEO, CYTA 21 st September, 2006

5. The Entrepreneurial Cycle Must first Identify a Market Opportunity Assess Resources & Strategy Required in order to enter the market & exploit the opportunity Keep up with Market Dynamics Avoid x-innefficiencies Generate Unique Resources Combinations so that to achieve Sustainable Competitive Advantage

7. Correlation between EBITDA Margin and Revenue Market Share Reference: Dr. M. Reif, T-Mobile International, M&A in the Communications Industry Conference, Prague, May 2006

25. Thank you for your attendance For more information please contact [email_address] See also CYTA’s website at www.cyta.com.cy