The Russian Car Industry in the Conditions of Globalisation: Factors, Features, Development Strategies

M anagement 2013, 3(7A): 1-7 DOI: 10.5923/s.mm.201310.01 The Russian Car Industry in the Conditions of Globalisation: Factors, Features, Development Strategies Diana V. Arutyunova*, Vlada G. Orlova Department of M anagement, Southern Federal University, Taganrog, 347930, Russia Abstract In Russia new fields of activity have arisen along with new goods, methods of business and development of enterprises as a result of globalization. Conditions of global markets with their h igh dynamics demand the other understanding of the choice strategy and this is the objective of our study. There the analysis of situation in domestic and foreign auto industry is held, the importance of strategic management in the process of actions choice is proved, methodology of forming strategic scenarios is defined in the present study. The ma in attention is paid to the analysis of the automotive industry in Russia, to the tendencies of its development and to the main points of growth. Special attention is drawn to domestic strategy of Russian car industry and to the influence of global co mpetition upon positions and strategies of the national companies. Be ing bas ed on the SWOT- analysis of automobile branch of Russia, strategies of the further development are chosen and scenarios of their realization are presented. Ke ywo rds Globalization, Development of automotive industry, Global strategy, Strategic choice, SWOT- analysis renders an essential mu ltiplicate effect on development of 1. Introduction other branches of economy and is the "engine" of export-oriented development. Modern analysis of the industry and enterprise In particular, a significant event in the development of the development process requires consideration of the trend of domestic automobile production was the emergence of the globalization. Th is is evident the mos t clearly in Russia, as it industrial assembly plants. e xis t e d in a c losed economy for a long period. At the present stage of development of the Russian car The necessity of Russian industry integration to world industry there is a strategic transformation of for ms and economics puts the problems of conformity of enterprise and methods of its management: its product to the world standards. - The internal regulators and influence mechanis ms of But, at the same time, a problem of identification of companies are being changed at regional, federal and strategic targets and optimization of control systems is put interstate levels; forward. - There are new relationships between car factories and Thereupon the importance of developing a strategic line component suppliers; of behavior and improvement of management in Russian - Economic communications between separate enterprises companies with new business concepts in a changing are being optimized; environment influenced by globalization is increasing. - Dealer s ystems are changing. As an object of research one of the mos t dynamica lly In the process of decision-making by transnational developing sectors of economics of Russia - mechanical corporations (TNC) on the placement of its production many engineering and in part icula r motor industry has been parameters are taken into account. In addition to market chosen. conditions and resources the s ecurity of the working The development of the automotive industry shifts the environment and infrastructure is important. T NCs are emphasis fro m the extractive industries into the d irection of interested in locating production close to the global transport efficient industrial production, investment, access to routes, in the first place - to the sea routes[1]. international markets. This proves the concentration of assembly p lants in certain The world e xperience of the advanced countries in the places: In the area of St. Petersburg, there are s even plants of development of a competitive auto industry showed that it different brands: «Toyota», «Nissan», «Ford», «Hyundai», «General Motors», «Scania», «MAN»; in the area of Azov * Corresponding author: [email protected] (Diana V. Arutyunova) Sea - 2 great enterprises («TagAz» and "RoAz"). Published online at http://journal.sapub.org/mm The industrial structure is being changed under the impact Copyright © 2013 Scientific & Academic Publishing. All Rights Reserved of globalization: the new companies appear; seaports 2 Diana V. Arutyunova et al.: The Russian Car Industry in the Conditions of Globalisation: Factors, Features, Development Strategies industrial areas are developing. But the development is industry. He evaluates their impact into the country's exit accompanied by manifestations of a different orig in: there is fro m an economic crisis, but also defines negatives of their the increasing international competition and the need to get activity during the postcrisis period (min imu m part icipation over global crisis that requires the situation analysis; the in R & D, importing of unmodern technologies and the development of a new vision and competition strategy equipment). He noted the current vector of motor industry alternative. development is different: transition fro m quantity to quality Global c risis has narrowed the market, therefore the indicators demands innovative transformat ions in ma jority of the industrial enterprises have difficulties of production. methodological, methodical and informational support of In line with the strategy of development of the automotive decision-making. industry in Russian Federation up to 2020[5] the toughening Thus, the aim of this study is to determine the elements of of conditions of industrial assemblage takes place. It a strategic choice and to reveal strategic init iatives in demands more active introduction of high technologies in Russian car industry under the impact of globalization and production. It promotes creation of new strategic alliances access to international ma rkets . in motor industry, that in turn requires additional To achieve the objectives several tas ks will be considered: investments and revision of e xisting investment projects[6]. 1 – Overview of researches on development of Russian One of p riorities of Strategy of development of a car and foreign car industry; industry is stimu lation of workings out and manufacture of 2 – De finition of strategic management methodology in a innovative vehicles and automobile components, creation context of the analysis and the choice of global strategy; new and modernisation of operating manufactures in 3 – Analysis of Russian motor industry and revealing of territory of the Russian Federation. basic tendencies of the market; Necessary condition of competitiveness of the enterprise 4 – Substantiation of strategy of an entry of the is not only the unique technological process, but the clear international companies to the Russian ma rket; orientation to the consumer and to the full application of 5 – Influence of a global competition on competitive ma rket ing strategy. positions and strategy of the national companies. S. Karpova and I. Rozhkov[7] proved this thesis and stated Meeting thes e objectives will identify trends in the further that during the post crisis period it is necessary to activate development of the Russian automotive industry in the ma rket ing strategy; to improve vehicles design constantly; to context of g lobalization and justify specific strategic develop more perfective types, making them not only solutions for enterprises engaged in this field. ecologically sound, but also cost-effective. Besides the subject of innovation can not only be new products and new technologies that are usually ta ken into 2. The Methodology of the Analysis of account but also new ma rkets , new management techniques, the Situation and Strategic Choices new organizational structures, etc.[8]. There the analysis of methodological foundations was At a choice of object of an innovation it is necessary to conducted in the first stage of our research for to solve the start with analysis of potential and resource possibilit ies of allocated problems. the mu ltinational corporation: SWOT-analysis of internal Co mple xity, d iversity and importance of effective and external factors, a choice of global strategy of functioning Russian motor industry had generated great functioning, working out of functional strategy of activity of interest among researchers. the company (financia l, innovative, marketing, investment, Intensive formation of strategic alliances, including etc.)[9]. technological ones with the participation of different Thus, globalizat ion conditions form new requirements to countries became the feature of economic development of development of organizations and, hence, define . the last decade of the XX-th century [2]. In recent years in management system changes, to improve competitiveness by order to save manufacture scales there the global focus on new for ms and methods of deliveries, manufacture automotive industry alliances are created fo r carrying out and distribution. perspective joint scientific researches as well as for The importance of strategic behavior of the organisation providing design works. sharply increases under thes e conditions. There is a change The influence of this process on motor industry of admin istrative paradigms: the priority of current results is development in Russia is considered by A. Dagaev[3]. In replaced by the goal of the further development. In this the paper there is the ana lysis of objective preconditions for connection, the methodology of carrying out of the strategic formation of the international

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