Business in Russia
Lance Erickson
Assistant Director
Center for Slavic and East European Studies
Initial thoughts
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What is the first thing that comes to mind when talking
about Russia?
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What are your first impressions of business practices in
Russia?
Center for Slavic and East European
Studies
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US Department of Education funded Title VI NRC
Provide support to all OSU students, faculty and
programs
Support all Ohio universities, businesses, communities
FLAS
Outreach
Support
Center for Slavic and East European
Studies
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Oxley Hall 303
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Career Services
 Job search, internships in-country, recruiter visits
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Conferences, discussion groups
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Cultural events
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Language maintenance and support
 Language tables, video library, lectures
Personal background
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Russian and East European Institute, Indiana University
(2005 - 2007) ~ top ranked program in US
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BA, Political Science, Russian & East European Studies,
University of Illinois
MA, Russian, East European and Eurasian Studies,
University of Texas
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Languages studied: Spanish, French, German,
Portuguese, Italian, Russian, Swedish, Ukrainian,
Lithuanian
Overseas work experience
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Sidvim and the Chicago Center (1997 – 1999, 2001 – 2005)
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Lived in Moscow, Russia; Kyiv, Ukraine; and Vilnius, Lithuania
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Traveled for business to…
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Russia: St. Pete, Kaliningrad, Chelyabinsk, Nizhny Novgorod,
Ekaterinburg, Irkutsk, Vladivostok
Ukraine: Lviv, Donetsk, Lugansk, Simferopol, Yalta
Lithuania: Kaunas, Panevesys, Utena, Klaipeda
Latvia: Riga
Estonia: Tallinn
Kazakhstan: Almaty, Astana, Karaganda
Austria, Belgium, France, Germany, and Sweden
Role within the company
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Manager of Faculty and Supplier Relations
Marketing Support Manager
Country Director – Ukraine
Regional Marketing Manager
Regional Marketing and Sales Manager
Director – Ukraine and Baltic offices
Sidvim / Chicago Center
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Private, Chicago-based
Origins: Siemens India, Universal Healthcare
Computers / Med Tech
Conferences
University of Chicago, Loyola University, Northwestern
University, University of Illinois at Chicago
Market entry
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Dental market overview
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Private vs. state-run
Cosmetic demand
Products available
Educational contacts
Training seminars
Conferences
Educational tours
Initial business plan
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Strategy
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Courses
Treatment
Rented facilities
Pricing
Inventory
Staffing
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Problems
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Establishing market
Providing follow up
Staffing
Breaking old habits
Clinical services
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Higher profit margin
Client referrals
Time spent working vs. teaching
Bringing in product
Success rate of difficult cases
Need to establish clinic for continued growth
Conferences
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International
Need for new and expanded fields
Increase network of contacts
Promote opportunities to western vendors
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More competition on the market
Pricing concerns
Investment in clinic
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Build state-of-the-art clinic
Combine with sales offices and training facility
Materials purchased in US and shipped
Key location
Set trend for private clinics in the market
Expenses and debt rose significantly
Ever increasing competition
Crash...
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Economy crashed in 1998
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Business struggles
Market empties
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State of the economy
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Bank defaults
Consumer market
Survival and Expansion
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Stayed in market
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Explored opportunities in Ukraine
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Moved into Ukraine, Baltics and Kazakhstan
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Moscow served entire region
Strain on resources
Conferences and Growth
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Moscow
EAO
Las Vegas
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Siberian Tour
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Logistical nightmare
Kazakh Tour
Headaches began…
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Trouble in the office
Differing objectives
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Staff purge
Client theft
Start of gray market
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Renewed customer service
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Client visits, visits, and more visits
New pricing structure
Move to Ukraine / Lithuania
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Russia stabilized
Young markets struggling
Key clients
Conference in Yalta
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Baltic market and EU entry
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Struggles
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Market competition
Pricing issues
Stock
Moscow always as priority
Expansion to India
Changing regulations
Move to Grushevskovo
Corporate espionage and crime
Orange Revolution
Current situation
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CCAD
Nobel Biocare Russia
Russia
Ukraine
Baltics
Kazakhstan
India
www.chicagocentre.com
www.nobelbiocare.com
Difficult business environment
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Office management
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Corruption and Blanket laws
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Customs
Computer software
Registration
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Company
Employee
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Shift away from democracy
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History and insecurity
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Romanovs – Soviets – Yeltsin – Putin – Medvedev - ?
Democracy vs. Kleptocracy
WTO
Life as an Expat in Russia
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Living conditions
Expenses
Travel
Time difference
Vacation time
Tight-knit community
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Exciting political and business scenes
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Are business skills enough?
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Importance of language skills
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Communication is key
Personal relationships
Networking
Importance of cultural knowledge
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Know your customers
Understand the market
History, politics, arts, literature…
Regions vs. Moscow
Why so much corruption?
Why so much red tape?
What can I do to prepare?
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EM course – amazing opportunity!
Work with Experts you have available at Fisher and OSU
Work closely with CIBER
Learn the language
Spend time in-country
Attend cultural events at OSU
Network with the local Russian community
Study the culture
Learn the language
Learn the language!
Questions?
Contact CSEES at any time!
Lance Erickson
erickson.107@osu.edu
Photos from CSEES, CIBER, CCAD, Nobel Biocare, and Microsoft
Map from CIA