Moda Textile Factory: Bishkek, Kyrgyzstan.

Topics: Planned economy, Market, Corporation Pages: 2 (611 words) Published: February 19, 2013
Moda Textile Factory: Bishkek, Kyrgyzstan.
1. How have Sergei and Olga’s lives change in Soviet days? Are their lives better? After the collapse of Soviet Union, Kyrgyzstan’s economics was slowdown since they was moving to market-based economy. Sergei and his wife lost their job and moved to capital. They borrowed money from family and friends starting business outside of the capital. After long period of time doing business over China, India, and Turkey, they did a better job and had enough capital for a largest department store in town. Their business was getting better and they built their own sewing factory of high quality apparel. The clients are wholesale traders who sold their goods to retailers in Kazakhstan and Russia. They had many difficulties in raising capital, exporting to new market, and many small local competitors. Even still having many challenges, their lives were much better than the period of Soviet Union.

2. What is Moda Textile Factory’s competitive advantage? How can it be used to expand the business? Firstly, Moda Textile Factory had a good relationship with their customers. Sergei had worked with most of his customers for many years, some of them were old friends of family, and also friends he knew during buying trips to Turkey. These loyal customers could bring him a lot of orders. Secondly, Moda Textile provided customer high quality products. They also had planned to make fashionable Italian imported cashmere coats. Different with other sewing workshops, Moda Textile want to develop their market not only in Kyrgyzstan but also in USA, Russia, and Europe. With a bigger target market, they will have more opportunities to expand their business.

3. What kind of people should Sergei and Olga look for as business partner to help them to expand their market outside Kyrgyzstan? How should they find a partner they can trust? What can they do to build trust with person? The best way to enter an outside market is looking for...
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