A Study of Semi Knock Down (SKD) Production and Sales and Marketing Strategy in the Russian Far East

Eiko Tomiyama
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Eiko Tomiyama: Graduate Institute for Entrepreneurial Studies

The Northeast Asian Economic Review, 2014, vol. 2, issue 2, 39-50

Abstract: The objective of this study is to reconsider strategies for entering markets in emerging nations by analyzing entry into emerging nations based on Semi Knock Down (SKD) production and the approach adopted toward local sales and marketing. Using case studies of SKD production in Vladivostok, Russia undertaken by the automobile manufacturers SsangYong of the ROK and Toyota and Mazda of Japan, this study analyzed and examined each company’s mode of entry and sales and marketing strategy. It ascertained that while SsangYong entrusts the whole of its SKD production to the local contractor, Mazda and Toyota of Japan have training staff leaders stationed there permanently to ensure thorough quality control; in addition, whereas SsangYong entrusts all of its sales and marketing to the local contractor, Mazda and Toyota have established wholly-owned 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 (search for similar items in EconPapers)
Date: 2014-10
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