Entering market in St. Petersburg, Russia– Kärävä Oy
Tsirkunov, Aleksandr (2013)
Tsirkunov, Aleksandr
Hämeen ammattikorkeakoulu
2013
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2013112818790
https://urn.fi/URN:NBN:fi:amk-2013112818790
Tiivistelmä
The company commissioning this thesis is Kärävä Oy. This company was founded in 1988 and since then they focus on producing timber of different quality and size. Their clients are wholesalers of timber and wood products, along with sauna manufacturers. Produced products are used for interior finishing in commercial and public areas. More-over, Kärävä Oy is also producing interior materials for saunas.
Main purpose for this thesis is to analyse if entering Russian market will be profitable and safe for company Kärävä Oy. In order to understand if internationalization to Rus-sia is profitable this thesis will analyse theory in order to understand most suitable ways of going international. Main theoretical background is based on literature and articles which can be accessed with Google.Books and Hamk E-brary. Theoretical research will focus on three main areas: internationalization, market entry theory and cultural differ-ences between Finland and Russia. Practical approach will focus on market research which will include price research, competitor/partnership analysis, PEST analysis and survey which will target potential customers. In order to get relevant data for practical research were used sources dated 2007 the latest. Sources were checked for their validi-ty with double check of information and Google.Scholar.
Main results achieved from analysing practical research show that it is profitable to go international for Kärävä Oy. Best starting point is to get in contact with K-Rauta and agree on exporting. Moreover, it is important to know that Russian sauna is called banya and it is different from sauna known to Finnish people. Potential customer survey showed that market of St. Petersburg is open for more companies producing saunas/banyas and people are willing to buy high-quality Finnish products for an extra price, because customers feel that Finnish products and materials have very good price-quality ratio. Majority of Russian customers are ready to pay up to 2000 euro for sauna and 25% of questioned are able to afford even more expensive sauna. These numbers should be satisfying for Kärävä Oy and should motivate company to start internationalization process.
In conclusion, if Kärävä is going to accept these results then company should invest more resources into market research and start negotiations with K-Rauta for first export possibilities. It is important to remember cultural differences between Russian and Finn-ish culture and for the best results it is almost mandatory to find Russian person for managing internationalization process.
Main purpose for this thesis is to analyse if entering Russian market will be profitable and safe for company Kärävä Oy. In order to understand if internationalization to Rus-sia is profitable this thesis will analyse theory in order to understand most suitable ways of going international. Main theoretical background is based on literature and articles which can be accessed with Google.Books and Hamk E-brary. Theoretical research will focus on three main areas: internationalization, market entry theory and cultural differ-ences between Finland and Russia. Practical approach will focus on market research which will include price research, competitor/partnership analysis, PEST analysis and survey which will target potential customers. In order to get relevant data for practical research were used sources dated 2007 the latest. Sources were checked for their validi-ty with double check of information and Google.Scholar.
Main results achieved from analysing practical research show that it is profitable to go international for Kärävä Oy. Best starting point is to get in contact with K-Rauta and agree on exporting. Moreover, it is important to know that Russian sauna is called banya and it is different from sauna known to Finnish people. Potential customer survey showed that market of St. Petersburg is open for more companies producing saunas/banyas and people are willing to buy high-quality Finnish products for an extra price, because customers feel that Finnish products and materials have very good price-quality ratio. Majority of Russian customers are ready to pay up to 2000 euro for sauna and 25% of questioned are able to afford even more expensive sauna. These numbers should be satisfying for Kärävä Oy and should motivate company to start internationalization process.
In conclusion, if Kärävä is going to accept these results then company should invest more resources into market research and start negotiations with K-Rauta for first export possibilities. It is important to remember cultural differences between Russian and Finn-ish culture and for the best results it is almost mandatory to find Russian person for managing internationalization process.