1 THE INTRODUCTION OF SMARTCARDS IN SMALL EUROPEAN COUNTRIES: THE CASE OF CYPRUS Soulla Louca, Demetris Nathanael School of Business, Intercollege Nicosia, Cyprus Louca.s@Intercollege.ac.cy , d.nathanael@eac.com.cy ABSTRACT Countries that have pushed for the accelerated deployment of smartcards in an array of applications have witnessed how smartcards have contributed to the modernization of their economies and to a better quality of life for its citizens. As businesses move online, as administrative procedures are automated, as health care administration is computerized and as digital signatures and e-payments are introduced, the importance of smartcards has increased exponentially. This paper analyzes the marketing situational environment in Cyprus regarding smartcards and concentrates on a proposition of strategies that could be employed by a multinational organization for introducing multifunctional smartcards in the Cyprus market. A market research has been carried out within Cyprus, and a marketing plan for penetrating the Cyprus market is proposed. INTRODUCTION The global economy is creating business environments that differ radically from those of the past. An essential activity of all present-day firms is that they strive not only for profits but also for international growth. As a result, no local market can be protected from international competition for a lifetime. This does not mean that all companies should go international, but rather that all companies should plan for growth and survival in a world of global competition. It is especially important to plan for growth, both effectively and swiftly, when you are a manufacturer of a new technological product that is considered revolutionary in its field, such as that of the smartcard. Simply described, smartcards are plastic cards that have an electronic microchip embedded in them, which can store electronic data and programs that are protected by advance security features. Smartcards are described in detail in the Section that follows. Their introduction and continues developments are incontestably shaping the future technological market worldwide. The Barcelona European Council in 2002, called on the Commission to draw up an e- Europe action plan which includes security of networks and information, e-Government, e- Learning, e-Health and e-Business (Barcelona European Council, Presidency Conclusions, 2002). As a consequence of this Action Plan, Member States have agreed to provide all basic services online by the end of 2005. Thus, most of the European countries are already following this direction. The development, however, of secure and seamless access to e-government services depends on deployment of electronic authentication means, which smartcards are very effective in supporting it. It is emphasized that this type of products cannot be adapted to suit the requirements of one country or one culture. The product as well as the required IT infrastructure (hardware, software, intranets, extranets) must be standardized.