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Choice Factors for Market Entry Modes of International Agricultural Technology Manufacturers in Developing Countries by the Example of Claas and John Deere in the Russian Federation and Kazakhstan

Student: Thorsten emanuel Gutmann

Supervisor: Alexandra Zhukova

Faculty: Faculty of World Economy and International Affairs

Educational Programme: International Business (Master)

Year of Graduation: 2020

The topic of the research is choice factors for market entry Modes of international agricultural technology manufacturers in developing countries by the example of Claas and John Deere in the Russian Federation and Kazakhstan. The object of this research are foreign market entry modes. Its subject are choice factors for foreign market entry modes of international agricultural technology manufacturers in developing countries. The goal of this research is to find choice factors which are significant or insignificant for agricultural technology manufacturers in order to enter a developing country. The following research question was formulated: “Which foreign market entry mode do international agricultural technology manufacturers use to enter developing countries, and which choice factors influence the decision?” The missing pieces of the state of knowledge are choice factors specifically relevant to the agricultural technology sector. There has been conducted research for choice factors in similar technology-driven sectors, such as food processing or various types of machinery. However, there is a scarcity of research in the agricultural industry. The relevance of the topic is based on the necessity for managers to comprehend motivations for entering a foreign market in a specific way under the terms of a highly capital-intensive sector like agricultural machinery and a high-risk environment like a developing country. The determination of relevant choice factors and the assessment of their significance can be an essential point of orientation in order to successfully internationalize business operations. The foreign market entry mode is a key factor for the success or failure of an integrated strategy of an international company. In terms of literature, the theoretical part of the research relies on various authors who have covered theoretical or practical aspects of foreign market entry modes for different industries, including the specifics of developing countries as well as the agricultural technology sector. The methods of the analytical part in Chapter 2 consist of a survey (see also App. 3) and qualitative interviews in the context of case studies (see App. 4, 5). The thesis proceeds as follows: Firstly, theoretical aspects of foreign market entry modes will be provided. Secondly, the practice and data of foreign market entry of agricultural technology manufacturers in developing countries will be examined. In the end, the results of the research will be depicted and discussed.

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