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A Study of Semi Knock Down (SKD) Production and Sales and Marketing Strategy in the Russian Far East

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  • Eiko Tomiyama

    (Graduate Institute for Entrepreneurial Studies)

Abstract

The objective of this study is to reconsider strategies for entering markets in emerging nations by analyzing entry into emerging nations based on Semi Knock Down (SKD) production and the approach adopted toward local sales and marketing. Using case studies of SKD production in Vladivostok, Russia undertaken by the automobile manufacturers SsangYong of the ROK and Toyota and Mazda of Japan, this study analyzed and examined each company’s mode of entry and sales and marketing strategy. It ascertained that while SsangYong entrusts the whole of its SKD production to the local contractor, Mazda and Toyota of Japan have training staff leaders stationed there permanently to ensure thorough quality control; in addition, whereas SsangYong entrusts all of its sales and marketing to the local contractor, Mazda and Toyota have established wholly-owned subsidiaries to carry out local sales and marketing, demonstrating the importance that these companies attach to such activities.

Suggested Citation

  • Eiko Tomiyama, 2014. "A Study of Semi Knock Down (SKD) Production and Sales and Marketing Strategy in the Russian Far East," The Northeast Asian Economic Review, ERINA - Economic Research Institute for Northeast Asia, vol. 2(2), pages 39-50, October.
    • Handle: RePEc:eri:review:2:2:39-50
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    References listed on IDEAS

    as
    1. Erin Anderson & Hubert Gatignon, 1986. "Modes of Foreign Entry: A Transaction Cost Analysis and Propositions," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 17(3), pages 1-26, September.
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