Adaptation of Market Strategies of TNCs in Russia

B.A. Kheyfets, V.Yu. Chernova2
European Research Studies Journal, Volume XXI, Issue 3, 192-205, 2018
DOI: 10.35808/ersj/1053

Abstract:

The policy of import substitution carried out in Russia objectively affected the interests of leading transnational corporations (TNCs) operating in the Russian markets. The restriction of imports of intermediate goods and the fall in the purchasing power of Russian consumers have formed for TNCs both new problems and new opportunities. The analysis of the integration of TNCs in the Russian policy of import substitution is carried out in the article; their role in the development of industries and agriculture is revealed. It is revealed that the strategies of TNCs are characterized by great flexibility, which allowed them to reduce the negative impact of sanctions and geopolitical tensions. TNCs widely use the strategy of acquisition of popular Russian brands. The weakening ruble and the cheapening of labor costs became additional decision-making factors for the localization of production and selection of local suppliers of intermediate goods, investing in modernization of production facilities, the establishment of added value chains with the involvement of national producers that contributed to the successful embedding of TNCs in the policy of import substitution.


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