Russian market entry strategy: Case Wondside Oy

Abstract

Abstract

Windside Oy is a small Finnish wind turbine manufacturer which is interested in exporting its products to Russia. The harsh climate of the country, allied to the vast market potential it offers, makes Russia an attractive proposition for Finnish SMEs like Windside. However, the Russian market also presents various challenges and difficulties which can make it a daunting international market to penetrate.

The main goals of this thesis were to outline the challenges facing Winside if it wanted to successfully export its wind turbines to Russia, and to propose a market entry strategy for the company. Firstly, it was important to design a logical and practical research plan. Secondly, a PESTE analysis of the Russian market for Finnish exporters was carried out and finally, based on the results of this PESTE analysis and in-depth interviews carried out with a number of experts in the field of Finnish-Russian trade, a Russian market entry strategy for Windside was devised.

The PESTE analysis highlighted a number of political, economic, social, technical and environmental issues which would need to be addressed if Windside is to successfully develop a market entry strategy for Russia. After conducting a comprehensive Russian market research study, a local partner needs to be selected (either agent or distributor) and a strong working relationship forged with this partner. Working closely with an agent or distributor would enable Windside to best overcome the challenges and difficulties outlined in the PESTE analysis, as well as limiting its financial exposure. Windside would also be advised to set up and maintain a comprehensive Marketing Information System (MIS) for Russia to monitor and control its progress in the Russian market. This enterprise would initially require significant investment of both capital and human resources in order to succeed.