Market Analysis on the Russian Market

Russia is one of the fastest-growing and major markets in the world and it is even one of the most popular countries for foreign entrants interested in business. There are plenty of options to conduct business in Russia in general and especially in the area of acrylic glass or polycarbonate. Despite this, no concrete study has been conducted so far to determine the most feasible entry mode into the Russian market for a German company producing the aforesaid materials. Using the most recent data, this thesis screens and evaluates the Russian market for German companies which produce acrylic glass or polycarbonate and contemplate to enter the Russian e-commerce marketplace. It provides a tailor made solution for entering the Russian market and finally describes key success factors for such an undertaking. In the context of the analysis it was found that a rapidly developing e-commerce market opens up doors to attract customers. Companies expanding their business to Russia encounter two unequal developed e-commerce markets whose audience displays different purchasing behavior, preferences and expenditures. Additionally, there is an increasing but unequally distributed interest on the mentioned materials in Russian regions. Moreover, there are strong local rivals in the field of polycarbonate but weak competitors in the acrylic glass business. The most important findings indicate remarkable chances for companies producing polycarbonate and that the most promising undertaking is a combination of exporting and a wholly owned subsidiary. In this paper the reasons and implications of these findings are discussed in detail.