This website uses cookies to ensure you have the best experience. Learn more

International Market Entry For The Mobile Telecommunications Market In The Russian Federation

4194 words - 17 pages

Grenoble Graduate School of Business: International Marketing MBA AssignmentInternational Market Entry for the Mobile TelecommunicationsMarket in the Russian FederationPatrick PetitProgram Lecturer: Paul Gaffney professor at Grenoble GraduateSchool of Business and Oxford Brooks Business SchoolAbstractThis paper presents and analyzes of the findings from a research diary (provided in an appendix),which aims is to explore the market entry and development strategies for the mobiletelecommunication market in the Russian Federation. The research diary uses references fromrelevant academic sources, trade journals and online publications that are available in theReferences Cited section. The diary ...view middle of the document...

In addition, Russia is a young and dynamic market(Smith, 2006) capable of rapid changes leading to risks as well as opportunities for new entrants.Other incentives for entering the Russian market include the country's large natural resources,potentially exploitable technologies and a well educated workforce. It is undeniable that dealingwith Russia's sometimes difficult to understand business environment has caused problems formany foreign companies. The difficulty to understand Russia's business environment can also be anadvantage as it serves as an entry barrier that assists those who do enter and learn how to operateeffectively to reap higher returns (Fallon and Jones, 2004; Fey and Shekshnia, 2008)The economic environment of the Russian FederationThe Russian Federation is the largest country in the world with a population of 142 million peoplescattered throughout eleven time zones. This country has large natural resources (gas and oil),whose industries account for nearly a quarter of the country's GDP and one-third in tax revenues ofthe state incomes. However, until 2000, doing business in Russia was hindered by poor03/28/08 1 © Petit P. 2008Grenoble Graduate School of Business: International Marketing MBA Assignmentmacroeconomic performance, its structural economic weakness, and the absence of political andinstitutional support for business (Fallon & Jones, 2004). Sustainable market growth has becomemore possible since the election of president Putin in early 2000. He introduced the new economicreform program by June 2000. The program, based on free market principals, called for anextension of fair business activities, guarantee property rights and the elimination of bureaucraticconstraints on businesses. Reform objectives included: taxation, budgetary measures, legal andcorporate governance, labor laws. It resulted in undeniable success, despite oligarchs' attempts toblock reforms, which helped create a market environment in which successful economic transitionand western businesses investments would become possible (Fallon & Jones, 2004).Business analysts have revised Russia's credit ratings upward, reflecting the growing confidence ofthe country's political stability, along with an increasing enthusiasm from western businesses andinvestors. Following Moody s and Fitch's upgrades in October 2003 and November 2004respectively. S&P s finally agreed that Russia warrants an investment grade rating BBB-, stableoutlook. (PCM, 2005)In effect, with one of the world's fastest GDP growth rates is estimated to 6.3% for 2008 (7.5%from 2001 to 2005), and a substantial average growth in purchasing power of more that 400 % from2001-2005, Russia has definitely become an attractive destination for foreign investments (Fey andShekshnia, 2008).This represents a dramatic investor confidence change from the mid-1990 when Russian marketwas perceived by analysts as a high risk market. However, challenges remain. Many analysts thinkthat the...

Find Another Essay On International Market Entry For The Mobile Telecommunications Market In The Russian Federation

Advantages of technology in the international market

654 words - 3 pages Technology plays a major role in international trade. Databases, overnight delivery and faxes have opened the world market to not only larger companies but small ones too. To add to this globalization, companies and even competitors are combining and forming alliances to cut cost and increase the profit margin. Chrysler, General Motors and Ford have formed an alliance in research and development to avoid duplication. These alliances are not only

Old Navy In The International Business Market

1849 words - 7 pages effectively in increasingly competitive international markets. Strategy are the same for both domestic and international companies they must determine what products to produce, where to produce them, and where and how to market them the biggest difference lies in complexity. Companies considering international production need to select many potential countries, each likely having more than one possible location. Whether it is being considered as

Nokia and the mobile phone market

2673 words - 11 pages in the mobile phone industry.-Nokia holds a strong position in the market based on an impressive rate of brand awareness, a healthy financial position and know-how.-The transformation from a small clothing company in Finland to an international giant in Mobile- and telecommunication is an absolute success-story.-Nokia has shown character and compassion in their "Corporate Responsibility" policy-Nokia's products are for everyone!-The key word in

International Market/Product Profile for Ornamental Fish in Japan: Analysis and Recommendation for the Producer/Exporter

3099 words - 12 pages recommendation for the producer/exporter of ornamental fish will be discussed after the analysis of the international market and product profile.1.2 Brief Description of Ornamental FishOrnamental fish keeping is emerging as one of the most popular hobbies in the world today, resulting in a steady increase in ornamental fish trade globally. In Asia, the most popular type of ornamental fish is called the Asian Arowana. Asian Arowana are long, sleek, streamlined

Foreign Market Entry

2246 words - 9 pages Foreign Market Entry 1.0 Objectives The author’s objective in this article is to discuss on the effective modes of entry for businesses that is planning to venture into international market. The entry modes methods discussed are aimed to help businesses to formulate an effective international business strategy and to position themselves to be successfully established in the global market. 2.0 Central Theory The central theory

Foreign Market Entry

921 words - 4 pages method, difficulties can come from franchising too. With a good business strategy, managers are able to reduce the negative effects associated with international business. Franchising usually works well for a company that has a solid brand name established already. It will prove to grow a company, thus, an increase in profits will be seen. Benefits to foreign market entry can be seen at all levels. Not only does it help an organization to expand on

Market Entry Strategy

3554 words - 14 pages collaborative joint ventures can tie up capital for a number of years.6)Long-term profit objectives.It is important to consider the growth of the market in the future when choosing a strategy.Having considered Quests current position in the Irish market and the resources available for this expansion, I have decided that licensing is by far the best market entry strategy available. Licensing is a system in which a licensee pays a commission or royalties

Market Entry Methods

707 words - 3 pages IntroductionOrganisations have a choice of a wide range of market entry strategies in order to expand their operations internationally. The mode of entry into an international market is a reflection of the relative importance assigned to the following criteria:The level of control the organisation wishes to exercise over its interests/concepts overseasThe amount of resources it is willing to commit to international expansionThe flexibility it

Vietnam Market Entry Decisions

982 words - 4 pages worth the risks inherent in investing in the region.Is it too late for U.S. companies to enter Vietnam?No; in fact, many firms have wondered if it is still too early, given the problems with dealing with a communist government, wide-scale corruption, lack of infrastructure and a retail market still in its infancy. However, early entry can be advantageous in that it would enable U.S. firms to gain exposure to the market (via exporting or

Russian Standard Vodka: Strategies for global branding and expansion into the US Market

2573 words - 10 pages ' consumers increase. On the other side, the vodka consumption, while being culturally important in the local market, is mainly on an on premise basis. Indeed, Russian Standards encountered some difficulties to enter the bar market. It's now taking benefits of new bars and night-clubs openings in big cities to broaden its distribution. International market Other large markets, such as the US, are now available for Russian Standard, in addition to

Understand and Critically Evaluating Entry Modes of Businesses in International Market

1209 words - 5 pages international market and whether that choice is a good or bad decision for the future of the company. The first part of the paper will explain in the details types of entry choices, the second part will be about advantages and disadvantages of chosen mode and at the end after researching and evaluating literature review a conclusion will be reached. Part One In 1977 Swedish researchers at Uppsala University came up with a model/theory how businesses

Similar Essays

The Mobile Phone Market Essay

3567 words - 15 pages 2020 companies could see continued growth within the market if they manage to adapt mobile phones for the individual and workplace. Companies could see a shared value of almost $38 billion. (Keeble, 2013) Yet as emerging markets may be an opportunity to innovate something for the population’s price bracket, on the western side of the world there hasn’t been many new devices being created. In 2012 there was an abundance of new and diverse devices

The International Bonds Market Essay

1026 words - 5 pages bonds: peseta (now euro)-denominated bonds which are issued by non-Spanish borrowers in the Spanish market. Functions of the International Bonds Market Shoprite can use the international bonds markets for diverse purposes during expansion in foreign markets. Firstly, Shoprite can issue bonds in foreign markets as it can attract a bigger and richer customer base rather in its domestic region. Therefore, having more demand for the Shoprite’s bonds

International Market Entry And Development In Russia Personal Computers

3644 words - 15 pages necessarily bad if you play the game and you know the right people.Rivalry in PC market in Russia is moderate (Datamonitor, Dec2008) and forecasted growth in PC sales make this market very attractive for the Market entry. The Russian market is big and fast growing so the benefits overweight the risk. Personal computer market is expected to continue to growth in the future and the Russian market is one of the fastest growing PC markets in the

Market Analysis For Juice In Singapore This Is Market Analysis For A Potential Entry Of An Australian Juice Company Called "Nudie" Into The Singaporean Market

1211 words - 5 pages for a better quality and pure freshly squeezed juice without the addition of water, preservatives, additives or sugar (Nudie 2008).International manager Mathew Barlow is quoted in reference to expansion of operation to Singapore that, "Singapore is a great export location for us at the moment because they have similar trading regulations, a sophisticated English speaking market, a cafe and deli food culture and there's no major trade restrictions