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Factors Influencing the Success of International Market Entry Strategies of Russian Aircraft Companies

Student: Sofya Shakhova

Supervisor: Ekaterina A. Makarova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: World Economy (Bachelor)

Year of Graduation: 2019

The aviation industry is one of the key industries of Russian industrial production. However, after the collapse of the USSR, domestic manufacturers have lost their niche in global aircraft production and now they have to solve a difficult task of returning to their previous positions and conquering a market which is already being dominated by the two largest Western manufacturers, Boeing and Airbus. This paper aims to address main directions of formation of strategies to ensure the interests of Russian aircraft manufacturers in the world market. The study showed that the growth in the production of Russian aircraft in recent years, combined with the low utilization of capacities, as well as the ratio of systemic problems and development prospects, indicate a significant export potential of the Russian aircraft industry. However, taking into account the fact that the global aircraft manufacturing market has a pronounced product differentiation of manufacturers and is virtually completely monopolized, in the foreseeable future it is almost impossible to destroy the duapoly of American and European manufacturers. Nevertheless, when choosing effective external strategies and implementing them (developing cooperation and cooperation with leading global aircraft manufacturers, expanding the product line and improving the practice of post-sale service, modernizing production, etc.), the planned increase in the share of Russian aircraft in the world market might be possible. This study might be contributive both for further research on efficient strategies for aircraft building companies and for the formation of state's policy in this area.

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