IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

European FDI for Emerging Market: The German Firm Strategy in Russia

  • Andrei Yu. Panibratov

    ()

    (Graduate School of Management, St. Petersburg State University, St. Petersburg, 199004, Russia)

This case focuses on the challenge of the Knauf Group strategy development for the Russian market. Knauf's active investment policy led to the growth of its brand recognition in the construction materials market and allowed for the creation of a strong premium brand. As a result, the company acquired a highly competitive position in the Russian market.Management had plans to increase investment in Russia, especially in the North-West region of the Russian Federation. However, in the year 2005 the company got rid of one of its most successful businesses, the Pobeda Knauf Masonry Mill in Kolpino just outside of St. Petersburg. The decision to focus on the production of gypsum products and related materials was made.Up to the moment of the sale of the Masonry Mill to a major Russian construction company LSR, the management of the factory had been conducted according to the same principles as were in force in Knauf's other businesses. The management focused on a strategy of quality, active marketing and improvement of the enterprise's organizational structure.After twelve years of success in the Russian construction materials market, Knauf sold its successfullyfunctioning manufacturing facility to its direct competitor, the Lenstroyrekonstruktsiya Group. This might either be evidence of the fact that Knauf is aspiring to more narrowly define its core competency via staying away from non-core activities, or perhaps, is an indication of the loss of its control over its affiliates and the decrease of its competitive positions in the North-West market of the Russian Federation.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=pdf&id=pii:S0218927510001350
Download Restriction: Access to full text is restricted to subscribers.

File URL: http://www.worldscinet.com/cgi-bin/details.cgi?type=html&id=pii:S0218927510001350
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Asian Case Research Journal.

Volume (Year): 14 (2010)
Issue (Month): 01 ()
Pages: 63-93

as
in new window

Handle: RePEc:wsi:acrjxx:v:14:y:2010:i:01:p:63-93
Contact details of provider: Web page: http://www.worldscinet.com/acrj/acrj.shtml

Order Information: Email:


No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wsi:acrjxx:v:14:y:2010:i:01:p:63-93. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.