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Penetration strategies of international company to the russian market

Student: TENSINA MARIYa

Supervisor: Pavel Karpus

Faculty: Faculty of Management

Educational Programme: Bachelor

Year of Graduation: 2014

<p>This paper examines the penetration strategy of&nbsp; the Japanese company Shimano. The topicality of this research is based on&nbsp; fact that new markets can provide companies a sustainable competitive advantage in a globalized economy. To obtain this competitive advantage international company needs to develop a penetration strategy that meets the requirements not only of the environment, but its own capabilities as well.</p><p>The overall goal of the &nbsp;research is to develop some elements of the penetration strategy &nbsp;for Shimano entering &nbsp;Russian market through &nbsp;detailed environmental analysis of the company. Based on the results &nbsp;obtained, a list of recommendations &nbsp;will be provided to improve Shimano&#39;s strategy.</p><p>According to the contemporary strategic management theories, a strategy developing model was adapted for the Shimano company, based on the analysis of external and internal environment of the enterprise. Through the&nbsp; portfolio analysis a penetration strategy of the fishing tackle was justified.</p><p>The industry rivalry has been studied using the Porter five forces analysis. The results showed that Russia&#39;s fishing tackle market is attractive, that is why Shimano should prefer aggressive strategy aimed at strengthening the competitive position, increase market share and expand sales channels.</p><p>The macro-environment was examined using PEST-analysis. Some opportunities and threats&nbsp; caused by political, economical, social and technological spheres of Russia were identified.</p><p>All the results were systemised by SWOT- analysis and main elements of the penetration strategy were identified. The list of recommendation provided includes the following elements: the dealer network improvement and&nbsp; marketing plan development. The author has suggested that the creation of the company&#39;s own sales offices in Russia can adapt better Shimano strategy for environmental requirements.</p><p>Finally it is important to emphasise that this study is very practical and its results can be useful for a Shimano strategy development.</p>

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