Our experience
Developing strategic directions of Lithuanian exports
Foreign exports bolster economic growth. Enterprise Lithuania, an agency responsible for fostering Lithuania’s exports, had a fragmented approach, and wanted to increase its scale and impact.
PwC, Enterprise Lithuania, and other stakeholders prepared export strategies for six Lithuanian sectors (two target markets for each), that can be applied for continued development.
Client:
Enterprise Lithuania
Our role:
The PwC team developed export strategies for the most potential sectors in Lithuania: high-tech engineering, biotechnology and pharmaceuticals, information technology, traditional engineering, furniture, food and beverages. Export strategies provide long-term export directions, identified based on sectoral strengths and key trends in the target markets, as well as clear action plans to achieve specific export goals in each target market.
Country:
Lithuania
Setting the scene
Lithuania has lots of activity and potential in its biotechnology and pharmaceutical, information technology and engineering sectors. It is also known for its quality furniture, and its healthy and delicious food and beverages. International trade allows citizens around the world to enjoy these products. And the export of Lithuanian goods helps advance the country’s economy.
Enterprise Lithuania, an entrepreneurship and export development agency under the Ministry of Economy and Innovation, is a key contributor in developing the country’s business and export ecosystem. By facilitating trainings, sharing knowledge and helping micro, small- and medium-sized businesses improve their competencies, the agency aims to increase the country’s competitiveness in foreign markets.
The agency supports various sectors and markets across the country, but wanted to refine their targeted approach to ensure the highest added value and potential. Enterprise Lithuania recognised untapped potential to scale up and have a wider impact, so they identified six potential sectors and two target markets for each of them. Enterprise Lithuania then chose PwC to develop export strategies for each sector.
How we helped
Together with PwC Poland, PwC Lithuania developed export strategies for potential sectors, external target market experts and representatives from Lithuanian sectors and Enterprise Lithuania. Preparation, research and development of the strategies lasted from November 2019 to the end of March 2020.
PwC provided methodological guidance for Enterprise Lithuania to perform a SWOT analysis (strengths, weaknesses, opportunities and threats) for six Lithuanian sectors. Since many of the sectors were segmented, the goal was to determine the overarching strengths and weaknesses seen throughout the whole sector. Based on these findings, PwC analysed 12 target markets and established the framework for a further TOWS analysis (matching the strengths with opportunities, and threats with weaknesses). The TOWS analysis was coordinated with representatives from Lithuania’s sectors and Enterprise Lithuania.
The results of the two analyses shaped the strategy and enabled the calibration of different export visions of various stakeholders for each of the sectors: high-tech engineering, biotechnology and pharmaceutical, information technology, traditional engineering, furniture, food and beverage. PwC facilitated interviews and moderated various strategic sessions with key stakeholders to identify strategic export directions and set up specific goals and KPIs.
Clear action and communication plans to implement the strategies were developed.
We have seen the need to develop strategies with the help of experts in target markets and identified priority sectors, who best know the ways and channels to reach the customers and effectively communicate with them to be heard and noticed in such large markets. The acquired knowledge and methodology of strategy development will undoubtedly be used in the future development of export strategies for other potential sectors.
Impact and potential
Even though the export strategies have not yet been fully applied, they provide long-term export directions, identified based on sectoral strengths and key trends in the target markets, as well as clear action plans to achieve specific export goals in each target market.
Clear strategic directions of exports development will enable the Government of Lithuania to focus their limited resources on the most potential export markets, achieve sufficient scale, build sustainable growth and create an impact that benefits the society.
Like many other modern economies, exports are incredibly important for Lithuania and its economic growth. In 2019 alone, Lithuania shipped more than USD33 billion worth of goods around the globe, which translates to roughly USD12,000 for every resident in the country.
Simona Buziliauskienė from Enterprise Lithuania says we need to think about export strategically. “Lithuanian companies are flexible, innovative and can surprise the world with their products. To achieve great export results and spread the word about Lithuania, its businesses and solutions, we have to have a strategic approach and these strategies can help us fulfill it faster. We believe that these strategies will help not only Enterprise Lithuania, but also the companies and other stakeholders to target their actions in the same direction.”
By implementing these strategies, Enterprise Lithuania aims to:
increase Lithuanian export volumes
increase the share of high-tech sector exports in the overall export structure
increase the added value created by Lithuanian business
unite sector companies and encourage them to cooperate and work together to expand
carry out unified communication about Lithuania as a strong, innovative and cooperative country.
Birutė Purvaneckaitė
Director, Advisory services, PwC Lithuania
Ieva Šegždaitė
Senior Consultant, PwC Lithuania
