(SKD) Production and Sales and Marketing Strategy in the Russian Far East*
The Northeast Asian Economic Review Vol. 2, No. 2, October 2014 39 A Study of Semi Knock Down (SKD) Production and Sales and Marketing Strategy in the Russian Far East* Eiko Tomiyama † Abstract The obective of this study is to reconsider strategies for entering markets in emerging nations by analyzing entry into emerging nations based on Semi Knock own (SK) production and the approach adopted toward local sales and marketing. sing case studies of SK production in ladivostok, ussia undertaken by the automobile manufacturers Ssangong of the K and Toyota and azda of Japan, this study analyzed and examined each company’s mode of entry and sales and marketing strategy. t ascertained that while Ssangong entrusts the whole of its SK production to the local contractor, azda and Toyota of Japan have training staff leaders stationed there permanently to ensure thorough quality control in addition, whereas Ssangong entrusts all of its sales and marketing to the local contractor, azda and Toyota have established whollyowned subsidiaries to carry out local sales and marketing, demonstrating the importance that these companies attach to such activities. Keywords: SKD production, CKD production, outsourced production, sales and marketing, value chain Introduction In February 2013, Toyota Motor Corporation (Toyota) began Semi Knock Down (SKD) production in Vladivostok in Russia’s Far East, at Sollers-Bussan, a joint venture between local automobile manufacturer Sollers and Mitsui & Co., Ltd. SsangYong Motor Company (SsangYong) and Mazda Motor Corporation (Mazda) have also been conducting SKD production at Sollers in Vladivostok since 2009 and 2012, respectively. In SKD production, the parts are first partly assembled into units and components in the home country, before being exported as a kit and assembled into the finished product locally.
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