State influence: Stroyservis is owned privately[11], there is no state influence through ownership. Stroyservis operates both in metal-roll and coal industries. Since company both extracts and then realize extracted coal, it is subjected to the Russian regulation in the area of selling natural resources. But nevertheless there is special tariffs, that regulate coal export[12]. Therefore there is no state influence.
Internationalization:
| Country
| Turkey, East Asian Countries (Japan, Korea, China) and East Europe (especially Poland)
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| Year of entry
| 2005, 2009, 2005 respectively
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| Industry/ business area
| Coal supply
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| Entry mode
| As other company of the natural resources extracting industry company export its coal.
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| Motives
| Nowadays Stroyservis owns 4 fields in Russia. Due to high competition in Russia and market saturation, Stryservis decided to go overseas. Because Kuzbass Region situated in the center of Russia, it doesn’t matter where to supply - East or West. Therefore company was demand oriented and firstly moved in the Western direction to the East Europe and Balkan countries. After supply strengthening in this direction, company moved West.
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| Firm specific advantagesused on the foreign market
| There is no local supply of coal.
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| First mover or follower
| Because the product itself (coal) is not so new in the market, it is impossible to be first mover. Despite the presence of the other companies in the region, the export market is still not saturated.
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| Type of state involvementin the process of internationalization
| There is no state involvement in the process of coal export.
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| Evaluationof the success of the internationalization
| This is almost the only entry mode for the Russian extraction companies into the foreign market is export. It is not risky – we supply until we have demand for our product abroad. Therefore it is quite successful.
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R-Farm
State influence: R-Farm is a Russian pharmaceutical distributor and producer, set up in 2001. The company is privately owned[13]. At the beginning, the key aim of this company was to conquer the leading position in this segment of the pharmaceutical market and further establish its own pharmaceutical manufacturing enterprises. This sector is subject to the laws and regulations of the Russian state, as other medicine distributors[14]. As well as mentioned above medicine distributors, R-Farm also participates in federal programs[15].
Internationalization:
| Country
| United States
|
| Year of entry
|
|
| Industry/ business area
| Pharmaceutical
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| Entry mode
| R-Farm created R-Pharm Overseas, Inc. in San Diego (CA) to provide R-Pharm with cutting-edge R&D technologies, discovery platforms, drug development strategies in the US, Japan, China and Europe.
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| Motives
| By creating it in San Diego, the aim was hire top-notch scientists (from California, Massachusetts and other states). Training scientists and healthcare professionals in the US for R-Pharm was really important for the firm. Moreover, this creation promoted partnering of drug candidates and drug discovery and development technologies with US-based Pharmaceutical, biotech and Venture capital companies, and implemented US-arm strategies of partnered molecules and projects.
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| Firm specific advantagesused on the foreign market
| Its specific advantage is that R-Farm is at the same time a supplier an a producer, with a huge expertise. To enter the American market, the Trace International Certificate they have was also a huge specific advantage.
|
| First mover or follower
| First mover.
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| Type of state involvementin the process of internationalization
| Since 2011, Russia is providing a significant investment of €4.5 billion up to 2020 to boost its healthcare industry. The goal is creating state of the art production facilities, launching innovative medicines and increasing exports and R-Farm has benefited from this program.
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| Evaluationof the success of the internationalization
| It’s a success for this company because R-Farm carried out license manufacturing of hospital and specialty care products for multinational pharmaceutical companies. Thanks to this creation, it also benefits from in-house scientific and research facilities and supports joint research and pre-production projects with leading international academic scientific institutions.
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