Nokian Tyres

Country

Finland

Year of entry

2005

Industry/ business area

Tyres producer

Entry mode

1964 - Export to Soviet Union

2000 – «Vianor» retail chain (2001 - first stor in Russia; 2006 – 70 stores)

2002-2004 – joint venture with «Amtel» Holding (was dissolved)

2003 – acquisition of retreading plant «Euroban-dag»

2005 - plant in Vsevolozhsk

• the largest investment project in the region with 150 mln €.

• 300,000 tyres were made there the same year

Motives

1. To continue being an absolute leader in home Nordic region.

2. Russia is closed to Finland

3. The weather conditions are the same

4. Big market (15% annually, income growth)

5. Growth of car sales

6. Export in Russia was about 25% of total sales in 2006

Firm specific advantages used on the foreign market

1. High quality of product

2. Good reputation of company in its segment

3. Company had enough knowledge of market to internationalize.

First mover or follower

In a point of view that Nokian Tyres offer such high quality product (especially for winter) it was new for Russian market, but in common there were several home players who sells tires for lower segments and Michlen who sells in high segment. So, follower strategy.

Type of state involvement in the process of internationalization

1. Authorities gave considerable support:

2. Company was provide with advisory services concerning the choice of an appropriate land plot

3. Help with lend acquisition and construction works

4. Company was granted a 10-year tax holoday, income tax rate was lower for 4 %

5. Import duties were also abolished

Company saved as about €80M

Evaluation of the success of the internationalization

At the end of 2012, plant performance Nokian Tyres Vsevolozhsk reached 12.5 million units per year. It had 1252 employees. Tires manufactured at Nokian Tyres Vsevolozhsk are sold in Russia, as well as being exported to Scandinavia, Central and Eastern Europe, the Ukraine and Kazakhstan - just more than 40 countries. ¹¹

Country

Russia

Year of entry

1992

Industry/ business area

mineral fertilizer producer

Entry mode

Export

Motives

1. Big capacity in Russia (620.8 thousand tons of fertilizers a year, 24938,8 mln rubles profit)

2. All resources which is needed are also in Russia (concentrated near the sources of raw materials and markets)

3. Strong chemical industry and opportunity to use different technological advantages

4. The Russian market of mineral fertilizers is going through hard times. The crisis in the banking sector is almost completely paralyzed credit market. Purchase of fertilizers traditionally carried out on the credit money. Difficulty obtaining credit does not allow us to make even rough estimates of new orders. So company had to export¹²

In 2011, the situation in the global fertilizer market most of the year was favorable for fertilizer producers. Global demand is fully recovered from the crisis, which contributed to the growth of production.

Firm specific advantages used on the foreign market

Increased competition in the global market due to the introduction of new production facilities, most of which are usually concentrated in regions with low natural gas prices. Increased competition in production and sale of fertilizers creates a potential risk that the Company will not be able to compete with producers. But the gas in Russia is quit chip and company can be more compatible.

First mover or follower

Follower

Type of state involvement in the process of internationalization

The Russian government wants to encourage fertilizer supply to the domestic market. This may be introduced export duties and other restrictions on exports of products of this type to contain the increase in prices on the domestic market.

Evaluation of the success of the internationalization

It is successful. The volume of production in 2011 amounted to 24,938.8 million rubles. An increase in the level of 2010 by 5989 mln., Or 31.6%. Exports accounted for approximately 76% of commercial products.