World Export Development Forum (WEDF)



 

Discussion brief for the Export Strategy-Maker

Export Development in the Digital Economy

Right e-solutions lead to new customers and the increase of competitiveness

A case study

By Sigitas Brazinskas
Lithuanian Development Agency
(
www.lda.lt)
(Not edited by ITC)

Introduction

In the exporters database (www.lda.lt/db) of the Lithuanian Development Agency which has around 500 members, 27 % of companies have their own web-site. The percentage of these sites that are oriented to use Internet as a marketing tool is, howver, quite low. The majority of companies use their sites just for initial presentation purposes. They are not suitable for handling an "online transaction". Local companies, therefore, need to be trained for e-business.

Case Study on DVARCIONIU KERAMIKA

The company, Dvarcioniu keramika (DK), is a model for other companies to base the development of their e-commerce strategies.

AB Dvarcioniu Keramika

  • Producer of glazed ceramic mosaic tiles, glues, ceramic roofing tiles, unglazed ceramic tiles
  • Turnover: 11 342 500 USD/1999
  • Export capacity: 36 %
  • Contact person: Raimundas Meilus, Sales representative for Western countries
  • Phone: +370 2 317411 Fax: +370 2 317558

DK signed an agreement with the IBM which allows to offer e-solutions to other tiles producers. This agreement confirms the high level of knowledge available within DK and the demand of such solutions among other Lithuanian companies.

The first page of the DK web-site demonstrates the company's ability to work in three languages (Lithuanian, English and Russian). This enables DK to have, theoretically, quite a big market. The CIS countries are second after the EU countries in importance as Lithuanian export partners and these two markets are fully covered by DK's presentation of product information.

Confirmation that DK holds a ISO 9001 Certificate assures prospective buyers that the company has a relevant quality management system in place.

The second page provides information on the location of local commercial contacts in Vilnius. The menu contains options on PRODUCTION (after activation presents full pallet of products) and TRADE.

After activation of the TRADE page information is available on main wholesale and retail contacts.

From this stage, a customer can make order on-line. The menu provides an ORDER facility which the customer can access after activating and a entering password to the main stock of the DK.

The company took the decision to provide passwords to only major wholesalers.

A customer gets full information according to the all products and different qualities available at the time in the stock. After completing a very clear and simple form and submitting a purchase order, the client's receives an order confirmation and the order is processed through the system for shipment.

Prices are not shown on this form and they are agreed separately.

DK is working works to develop the system to automatically issue invoices, transport documents, packaging list and other export documentation.

This new solution has already led to identifying new customers in the UK, Germany and Norway.

Best practices:

  1. The company knew what it needed to achieve in order to start selling on-line.
  2. DK management are capable to set own goals and are not reliant on the ISP.
  3. The web-site is used as a marketing tool and CRM (Customer Relationship Management): - three languages; easy navigation; exhaustive product presentation; features.
  4. Providing main wholesalers with their own password emphasizes the company's focus on good relations and maintaining a market-oriented attitude and emphasis on delivering value through Internet.
  5. The easy ordering system is of key importance
  6. Emphasis on further developing the site (and internal e-systems) is essential.

Posted 23 October 2008  

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