Expansion of a heat pump manufacturer into Scandinavian markets
We prepared a full entry strategy for Norway and Sweden. We found 4 local distributors and negotiated cooperation terms that allowed the company to reach break-even in the new region in just 5 months.
In January 2024, heat pump manufacturer EcoHeat Tech was pushed against a wall. Polish competition and cheap imports lowered the company's margin to 11.4%. We set a clear goal: we go straight to the summit and enter Scandinavia, where efficiency matters, not just price.
The challenge
The company produced great equipment but had zero contacts abroad. In 2023, they sold 432 units, which barely covered factory costs. Every month without new markets meant 45,800 PLN in operating losses just to maintain technicians. The biggest barrier was the lack of knowledge about technical certification in Norway and Denmark and fear of logistics costs.
Our approach
We didn't play around with theoretical reports. We verify facts in 48 hours. We sent two Tatry Strategy Group analysts directly to Oslo, Stockholm, and Copenhagen. We sifted through a database of 82 potential distributors. We rejected 74 companies that had punctuality issues or poor service facilities. We focused exclusively on hard numbers.
The solution
We prepared a new logistics model that reduced transport costs by 114 euros on every pump sent. In 19 business days, we adapted the documentation to strict Scandinavian standards. We negotiated hard terms with 4 large distributors who provided advance payments for the first 145 units. Specifics instead of theory allowed for a lightning-fast start to sales.
Results
The project brought a real profit faster than management expected. The company reached break-even in the new region exactly 154 days after the first analysis. Currently, the margin on foreign sales is 42% higher than on the Polish market, and the factory is working three shifts to keep up with orders from Norway.
Timeline
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January 2024Financial audit and analysis of 82 distributors in 3 countries.
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February 2024Adapting technical documentation to EU-North standards.
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March 2024Sales negotiations and a tour of partners in Oslo and Malmö.
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May 2024Signing contracts and shipping the first batch of goods.
"Tatry Strategy Group didn't promise visions. They gave us a list of specific companies and negotiated prices. Numbers don't lie – now our pumps are heating houses in Bergen."