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Internationalization:

Country

Kazakhstan

Year of entry

2006

Industry/ business area

Gas pipeline maintenance

Entry mode

Export

Motives

While operating in USSR, the company was owned by government and took part in building and maintaining oil and gas pipelines across the whole country, so established relationship from the past were the reason to receive an order from Kazakhstan government.

Firm specific advantages used on the foreign market

Knowledge of technologies and experience and knowledge in working with this particular gas pipelines.14

First mover or follower

First mover as initially in the USSR this company was responsible for constructing pipelines.

Type of state involvement in the process of internationalization

Indirect. Good diplomatic relations promote to hire the company to make pipeline maintenance.

Evaluation of the success of the internationalization

It was successful as company fully did all the required work and will be involved in this pipeline maintenance in the future.

Mospromostroy

Founded in 1972, Mospromostroy has been the construction market leader in Moscow for 35 years. Mospromstroy offers its customers a full range of services, including construction, renovation, building planning and restoration of architectural monuments. It has built and renovated more than 2,000 structures of various kinds, and installed millions of square meters of living space. Mospromstroy currently holds a third of the construction market in the Russian capital.

The company constructs mainly in Moscow, built such objects, as the Russian Government Building, the State Kremlin Palace, the Cathedral of Christ the Saviour, the Bolshoi Theater Annexe and many housing. However, the geography of Mospromstroy’s business now extends beyond Moscow. They are developing regional projects for new industrial facilities, public buildings and dwellings. The Company’s order book includes reconstruction of oil wells in West Siberia, construction of a tourist complex in Krasnodar Region, and several hotel projects.15 They include a project made by “Astanapromstroy” in Astana, Kazakhstan. Nowadays most of the shares are owned by Michail Gutseriev (99.5% of shares).16

Internationalization:

Country

Kazakhstan

Year of entry

2009

Industry/ business area

Construction of commercial building

Entry mode

FDI through affiliate (“Astanapromstroy”), greenfield, wholly owned, license.

Motives

Strong established relationship with Mariott Hotels owners (Maspromstroy built several hotels in Moscow for the company), which order the next hotel construction.

Firm specific advantages used on the foreign market

Kazakhstan is former USSR republic, so, probably it was quite easy to establish business processes there. Well-known partner for the company, which ordered a construction, is Mospromstroy competitive advantage.

First mover or follower

Compare to other Russian companies operating in the same country and the same business area.

Type of state involvement in the process of internationalization

No, but at those times 25% shares of Mospromstroy were owned by Moscow regional government.17

Evaluation of the success of the internationalization

Successful.

LenSpetsSMU

LenSpetsSMU Group (member of Etalon Group) is one of Russia’s largest and oldest homebuilders which have been operating since 1987. Throughout its history LenSpetsSMU has developed and delivered over 130 buildings with a total area of approximately 3mn sq m. LenSpetsSMU Group’s primary focus is on developing large-scale residential real estate complexes targeting the lower middle class and upper economy price segments. LenSpetsSMU Group’s current focus is expansion in St. Petersburg Metropolitan Area, although it has some project in other Russian regions.

The company launched several projects abroad, but now it has no international businesses. In 2008 it planned to build 22 square meters of property in Bulgaria, and then it had some plans to enter Serbia18, but later in 2008 executive director Vacheslav Zyrenkov commented that the company was not going to continue expansion abroad and announced that Serbian project would be canceled due to war19. The company also had its branch in Ashkhabad, Turkmenistan, which was opened in 2009, but in 2011 final report of the year stated that the branch was closed.

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