Choice of market entry mode, Case study: Kadant Johnson

ABSTRACT \nKYMENLAAKSON AMMATTIKORKEAKOULU \nUniversity of Applied Sciences \nInternational Business \nNepomilueva, Daria\tCHOICE OF MARKET ENTRY MODE, CASE STUDY: KADANT JOHNSON \nBachelor’s Thesis\t\t64 pages + 3 pages of appendices \nSupervisor\t\t\tPeter Zashev, D. Sc. (Econ.) \nJune 2010 \nKeywords\t\t\tinternationalization, market entry mode, rotary joint \nThis thesis describes the factors that should be considered in a company’s internationalization process. It gives information on different market entry modes as well as the factors that influence entry mode selection. The thesis focuses on the Russian corrugated cardboard market and defines the main market characteristics. The idea was to find out the optimal market entry mode for Kadant Johnson in the Russian market. \nThe material for the theoretical part concerning research fields in internationalization process was gathered from books, journal articles, research studies and Internet. The information for the case study originated from various press sources in the field and articles. The empirical part is based on phone interviews with potential customers located in Russia. \nThe research findings provide the company with a list of potential customers. It also concludes main advantages and disadvantages in the market and gives suggestions for the market entry mode that can be used when entering the Russian market. According to that, the company should use an agent as the entry mode at the beginning, but with the demand growth and stability, market expertise, knowledge and contacts, perception can change to foreign sales branch or subsidiary mode.