Evaluation Of The Market Entry Modes For The Scottish Market For The Company

Evaluation of the Market entry modes for the Scottish market for the company.

UAB Uostamiesčio Langai is a Lithuanian limited liability company producing aluminium and uPVC solutions for windows, doors, curtain walls and conservatories. The company has been established in 2003 and is owned by a single shareholder Gintautas Kurlavicius.

The company offers a wide spectrum of thermally insulated aluminium and uPVC profile products for all market segments. The aluminium and uPVC profile solutions that are produced by the company are recognized due to high quality and high burglar resistance levels. The company has projects in Lithuania and Latvia. The company employs 15 employees.

During the last four years the company’s turnover has been growing fast. The growth resulted in response to improving economic situation in the world, new markets entered and growing trust among company’s customers. The growth can be seen in the financial performance indicators of the company (see table 1).

The uPVC profile windows that are produced by the company might be grouped into three different categories: Ultimate 70, Ultimate 62 and Eurologik. The Ultimate 70 are considered as trustworthy and economic window systems that reaches the thermal insulation level down to 1.4 W/m²K. Unfortunately, such window frames are available only in white colours and meets only the minimum burglar resistance level (class 1). Meanwhile the system Unilogik 62 is known due to its outstanding thermal insulation (down to 0.77 W/m²K) and the high burglar resistance level (class 4 available – triple glazing). Such window frames are available in multiple colours. Lastly, the Eurologik profile window systems are considered as very close substitute to aluminium profile system 59. It is an economic solution with a low thermal insulation level and low burglar resistance level. Such systems (as well as concept 59) fit best for indoor placements, winter gardens or for the projects at the warm climate zones.

UAB Uostamiesčio Langai seeks to enter the Scottish market. The company wants to reach the Aberdeen and Edinburgh cities as their households have the highest disposable income in the whole Scotland. According the report published by accountancy group UHY Hacker Young (Roland, 2014), Aberdeen city households in 2014 had the highest increase in disposable income since the Global financial crisis in. Additionally, Aberdeen and Edinburgh cities have been ranked as the second and third top cities in UK to live and work according to the report from PwC and think tank Demos (McArdle, 2014).

Scottish market is attractive for the number of reasons. According to Scotish residential market forecast (Rettie, 2014) the price of residential properties in both cities are on average the highest in the whole Scotland and the total amount of residential property is expected to grow by 5.3% in 2015. In addition, Aberdeen and Edinburgh residents have the highest disposable income in the whole Scotland (Scottish Parliament Information Centre, 2014), therefore, the company assumes that majority of households are not price sensitive and are willing to pay premium for the higher quality goods. In addition, the company can easily identify the Scottish consumers’ needs in contrast to window profile systems as Scotland’s weather and climate is relatively similar to Lithuania’s. Furthermore, majority of company’s employees have good English language skills that are essential for negotiations and keeping a good relationship with customers.