Do you know who I am?How to differentiate and stand out from the crowd?

Know how and why the Latvian Government commis-sioned Bloom Consulting to develop a Country Strategy to attract FDI and increase the country`s visibility abroad.

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The challenge

Latvia's government identified the need to develop a project to increase strategic foreign direct investment.

The country was attracting a substantial amount of greenfield investment, however those investments were based on low-value strategic variables, such as available workforce, low cost workforce, low Taxation, good infrastructure or location.These variables were not considered strategic as there was no differentiation from its neighboring countries, and more impor-tantly, as time and development progressed, quality of life would increase in the country and these variables would no longer be available for investors. Salaries would rise, there would be a high level of employment and so on.

The challenge

Latvia's government identified the need to develop a project to increase strategic foreign direct investment.

The country was attracting a substantial amount of greenfield investment, however those investments were based on low-value strategic variables, such as available workforce, low cost workforce, low Taxation, good infrastructure or location.These variables were not considered strategic as there was no differentiation from its neighboring countries, and more impor-tantly, as time and development progressed, quality of life would increase in the country and these variables would no longer be available for investors. Salaries would rise, there would be a high level of employment and so on.

The approach

Bloom proposed to open a project focused on1 - Identifying unique variables of Latvia and how to "sell the country abroad”2 - Identifying and justifying which are Latvia’s strategic sectors to bring credibility to investors

Following our methodology, we researched what are the current perceptions in investors’ minds about Latvia, so we could understand what were Latvia’s unique selling propositions.

The challenge

Latvia's government identified the need to develop a project to increase strategic foreign direct investment.

The country was attracting a substantial amount of greenfield investment, however those investments were based on low-value strategic variables, such as available workforce, low cost workforce, low Taxation, good infrastructure or location.These variables were not considered strategic as there was no differentiation from its neighboring countries, and more impor-tantly, as time and development progressed, quality of life would increase in the country and these variables would no longer be available for investors. Salaries would rise, there would be a high level of employment and so on.

The approach

Bloom proposed to open a project focused on1 - Identifying unique variables of Latvia and how to "sell the country abroad”2 - Identifying and justifying which are Latvia’s strategic sectors to bring credibility to investors

Following our methodology, we researched what are the current perceptions in investors’ minds about Latvia, so we could understand what were Latvia’s unique selling propositions.

The Findings

Our findings among 300 Business leaders indicated that although Latvia had no connotations or was simply associ-ated with “price”, it was also perceived as a country with an excellent educational system thanks to it’s connotations with Russia and the former soviet union. With this positive perception, came the Latvian Universities that ranked very high in terms of perceptions.

Latvia’s perception Latvia’s University reputation

Other

Education

Positive

NegativeNone

Low

None

42% 27% 23% 8% 65% 25% 10%

The Strategy

Based on all findings from the research, Bloom Consulting developed a project called the Polaris Process - A conjointMethodology between Latvian Universities and the Investment Promotion Agency to provide research and sectorial know how to strategic foreign direct investors.

The Polaris process does not only involve two main stakeholders, but totals seven.

All seven stakeholders feed the Latvian perception of an “highly educated society” by delivering true knowledge and content to any strategic investor. This delivery is structured in the Polaris Process, where all Key stakeholders are interconnected and play a role in the entire process... Including the Investor, thus ensuring an engagement from an early stage of contact or lead.

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Strategy

Additionally to the process, Bloom Consulting designed the entire methodology with quantifiable objectives for the whole process and for each stakeholder. All objectives where thought out in two phases 1) internal and 2) external

The first one was about identifying what were the key success factors for the process to work efficiently The second one was about determining who could be a strategic investor and in what geographies.

All foreign representatives where instructed to approach only strategic sectors for Latvia and to introduce a sales speech based on research and sectorial findings from Latvian Universities. The focus for each foreign representative was to bring 10 strate-gic investment leads in the first Phase and convert it in real cases within 1 year

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Strategy

Additionally to the process, Bloom Consulting designed the entire methodology with quantifiable objectives for the whole process and for each stakeholder. All objectives where thought out in two phases 1) internal and 2) external

The first one was about identifying what were the key success factors for the process to work efficiently The second one was about determining who could be a strategic investor and in what geographies.

The Latvian Development agency was responsible for coordinating all stakeholders in the Polaris process, as well as structur-ing the organization to ensure the whole process would work. Moreover, they used Bloom Consulting research to choose 7 select sectors for development and attraction, introducing them in the National Political agenda and cabinet of ministers.

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Strategy

Additionally to the process, Bloom Consulting designed the entire methodology with quantifiable objectives for the whole process and for each stakeholder. All objectives where thought out in two phases 1) internal and 2) external

The first one was about identifying what were the key success factors for the process to work efficiently The second one was about determining who could be a strategic investor and in what geographies.

The Universities were coupled with the Latvian Development Agency in the Investor approach and all research findings and white papers on the 7 select sectors would be introduced in the process and delivered to the strategic investor. Moreover once the investor would decide to invest in Latvia, the University would offer free of charge research projects.

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Strategy

Additionally to the process, Bloom Consulting designed the entire methodology with quantifiable objectives for the whole process and for each stakeholder. All objectives where thought out in two phases 1) internal and 2) external

The first one was about identifying what were the key success factors for the process to work efficiently The second one was about determining who could be a strategic investor and in what geographies.

The Ministry of Economy needed to assure the strategic sectors were the recommended 7 and would meet each individual investor personally to inspire confidence

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Strategy

Additionally to the process, Bloom Consulting designed the entire methodology with quantifiable objectives for the whole process and for each stakeholder. All objectives where thought out in two phases 1) internal and 2) external

The first one was about identifying what were the key success factors for the process to work efficiently.The second one was about determining who could be a strategic investor and in what geographies.

All interested municipalities were asked to demonstrate their level of interest in receiving foreign investment and play an edu-cational role with the local community to explain the importance of FDI

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Strategy

Additionally to the process, Bloom Consulting designed the entire methodology with quantifiable objectives for the whole process and for each stakeholder. All objectives where thought out in two phases 1) internal and 2) external

The first one was about identifying what were the key success factors for the process to work efficiently. The second one was about determining who could be a strategic investor and in what geographies.

Most Latvian companies in the 7 select sectors (Wood processing, Metallurgical, Transportation and Logistics, IT, Healthcare, Life Sciences, Green tech) would express interest in receiving international investors or simply in cooperating and sharing sectorial information

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Strategy

Additionally to the process, Bloom Consulting designed the entire methodology with quantifiable objectives for the whole process and for each stakeholder. All objectives where thought out in two phases 1) internal and 2) external

The first one was about identifying what were the key success factors for the process to work efficiently. The second one was about determining who could be a strategic investor and in what geographies.

International Investors would express areas of interest with Latvian Development Agency to discuss with Universities and all Stakeholders know-how and integration needs.

Foreignrepresentatives

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Level of involvement

Chain process

Universities

The Projections and Results

Most stakeholders had quantifiable objectives to follow, and sectors were considered strategic thanks to solid projections.

Level of return

Chain process

Foreignrepresentatives

10 Leads/Y1 Investor/Y

20 visits/Y10 Investors/Y

10 Projects/Y Up to 5% GDP Increase

P/ Sector

TaxationEmployment

Investment Higher ROIMore research

Latvian Development

Agency

Ministry of Economy

Municipalities

Private Sector

Investor

Universities