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Industrial trade networks in Bulgaria

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Industrial trade networks in Bulgaria

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Samenvatting

The purpose of this report is to investigate the industrial trade networks of Bulgaria for the manufacturing of machines, parts, tools and mechanical equipment. It was assigned by the marketing consultancy KommaNet in order to find out why its main client, the Dutch Centre for Promotion of Imports (CBI), has been unable to make connection with Bulgarian companies and include them in its industrial trade network. The research aims to help CBI in deciding whether there is a potential for cooperation between the participants in its Export Coaching Programme 'Engineering Products' and Bulgarian companies.

It becomes clear that after the collapse of the Soviet market, crucial
production networks broke down. The challenge of the reorganisation of the production process and developing a new industrial trade network placed Bulgaria in an unequal position when exposed to the fierce competition of the integrated European market. Even though the European Union had a positive effect on the market orientation and trade, Bulgaria was unable to fully adjust to the competitive environment of Western Europe and make connections. After the crisis experienced, the output of machines, tools, spare parts and equipment has been growing, as the demand for engineering products. There are a great number of manufacturers of the above-mentioned products which are potential clients of CBI. However, the Soviet legacy has
led to lack of knowledge and experience, which has affected the current situation of the Bulgarian trade and networks. As a result, Bulgarian companies have missed the opportunity of purchasing supplies from developing countries and their main export target has become neighbouring countries of Bulgaria.

The paper concludes that there is a potential for cooperation between
Bulgarian companies and exporting clients participating the CBI programme 'Engineering Products'. The problem of finding Bulgarian companies that CBI has had can be attributed not to the lack of such, but to their Soviet past and the difficult reorientation of their production network and trade to the West. Connecting the exporters of the CBI programme with Bulgarian companies would certainly be of benefit for them in order to find European buyers and develop their trade. On the other hand, buying supplies from developing countries would contribute to the cost efficiency and competitiveness of the
Bulgarian manufactured goods.
CBI is recommended to contact Bulgarian companies and connect them with its
exporting clients of engineering products from developing countries. It is advisable that the exporters start their export activities to Bulgaria through intermediaries. After they have gained experience and knowledge of the Bulgarian market, CBI should provide its clients with contact information of manufacturing companies. They can be found through a variety of sources, such as associations, online databases and events. In addition, CBI should prepare its clients for export to Bulgaria through the
information provided on market access requirements and Bulgarian business
culture.

Toon meer
OrganisatieDe Haagse Hogeschool
AfdelingESC Europese Studies / European Studies
Jaar2010
TypeBachelor
TaalEngels

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