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Published since 2002
Frequency: 4 issues per year
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Issue 3, 2015

Medvedev A. G. Strategies and Business Operations of Global Tyre-Makers in Russia (Case Study).

This case describes business strategies and operations of world leading tyre-manufacturers in Russia. They are Germany-based Continental, Japanese Yokohama and Bridgestone, Finnish Nokian Tyres, Italian Pirelli, French Michelin, and US-based Goodyear. This case is focused on the issue of how decisions on operation modes and roles of business units in the target country were made by firms managers. It reports the results of a comparative case study based on secondary data. It considers the set of factors which, being taken into account in using separate tools of the strategic analysis, impact the consecutive decisions on an operation mode, facility location, suppliers, marketing channels, etc. It shows that competing firms operating in the same industry may apply various patterns of making business operations in the same host country. The case helps trace how a selected business mode corresponds to the nature of the industry (global value chain structure, product differentiation, technological solutions, suppliers position, demand structure, and others), corporate characteristics (firms country of origin, firms history, top-managers mentality, responsibilities of local management), and the target country environment (distances between countries, peculiarities of national markets). The data presented in the case is sufficient to simulate the process of strategic analysis of a firms internationalisation which provides insights into comprehensive management decisions made by multinationals in the tyre industry. This study provides historical context for recent trends of internationalisation in the mature sector and onfirms the fact that industrial features and firm characteristics rather than host country environment matter, an illustration of a visible gap between modern corporate practice and traditional international business theories. Keywords: multinational corporations, tyre industry, strategies of foreign expansion, global value chain, foreign operations modes.

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