Development of an Extension Strategy for a Distributor of a Russian Steel Company in the International Market

Steel industry is a key for many countries of the world, on which the development of the state economy and the socio-economic state of society depends. The crisis of 2020 caused by the pandemic dealt a serious blow to the global economy: a decrease in the economic activity of enterprises and demand for metal products, as a result of a decrease in production volumes, bankruptcy of enterprises, job cuts, etc. In the Russian market, the crisis was exacerbated by a sharp drop in oil prices in March 2020, which led to the devaluation of the ruble. The steel company Severstal in the current crisis is able to continue its activities without reducing production volumes and staff reductions. However, in today's Russian market, the company has several obstacles: a decrease in demand in the construction, energy and engineering industries, quarantine measures introduced at customers' enterprises, and a depreciation of the ruble. Against the background of the Russian market, export to Europe looks attractive, where the company already has foreign assets but occupies only 5% of the market. In this situation, Severstal has a good opportunity to increase its share in the international market, because the company has a competitive advantage in the low cost of production and geographical location, which allows for logistics along the Baltic Sea and contacts European countries. In order to ensure the efficient operation of Severstal in the conditions of the crisis of 2020 and additional growth of indicators, the company needs to reorient to export and strengthen its presence in the European market. This requires a well-developed development strategy in the international market. For international companies, a strategy is a key element of success in the global market. It is important to consider that when developing and implementing an international strategy, it is necessary to use additional and specialized approaches, methods, and tools of strategic management. The aim of this work is to develop a strategy for the distribution network of Severstal in the international market, for the competitiveness of the company and its further development. The work consists of three chapters. The first chapter reviews the methodology for developing a strategy, considers the approaches of the main authors of strategic and international management, and defines tools for analysis. The second chapter presents an analysis of the metallurgy market, including an analysis of the strategies of key players in the Russian and foreign markets. In the analysis, Germany was chosen as a strategically interesting metal trading market for Severstal. In the third chapter, a business strategy and recommendations for the management of Severstal Distribution on the development of the company in the German market are developed.