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Strategy |
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The strategic goal of SITRONICS is to forge a position in the "Premier League" of world players in the high-tech field. We intend to become a global technological company, strengthening, at the same time, our leadership on the domestic market. As a supplier of technological solutions and innovations in the fields of telecommunication, information technologies, and microelectronics, we already hold a leading position on the markets of Russia, the CIS, and Central and Eastern Europe. Our business is also represented and is making solid progress in the countries of the Middle East, Africa, and South-East Asia. We are increasing the company's activities in those regions because we consider them the fastest-growing in the high-tech sector. A higher demand for IT services, as compared to the most developed countries, allows us to efficiently develop our business in this field. For instance, in Russia, the IT per capita expenditures are still three times lower than those in Eastern Europe and 15 times lower than in the USA. The penetration of Broadband and Internet networks in Russia is eight times and four times lower respectively than in the USA. According to the IDC's estimates, up to the year 2010, the IT service market in Central and Eastern Europe will grow by 17.2% and in Russia by 24.7%, while the forecast for the rest of the world is just 3 to 5%.
In addition to its organic growth, SITRONICS will pursue a strategy of mergers and acquisitions (M&A) to gain access to customers, markets, and technologies. When entering new markets, we follow a uniform principle of purchasing successfully operating companies. For example, in June 2006, we acquired a 51% stake in the Greek company, INTRACOM TELECOM, which enabled us to significantly consolidate our leading position in the countries of Eastern Europe and provide us with access to the markets of Southern Europe and the Middle East. The acquisition also allowed us to obtain product synergy, the possibility to offer new products on our traditional markets, as well as to access new technologies and extensive R&D activities.
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