This is a unitary enterprise in Russia, responsible for the production of coins and bank notes. It is under the full supervision of Ministry of Finance in Russia. Therefore, it does not operate in any other country except Russia.
Year of entry
Industry/ business area
Firstly, the company exported its production to some CIS countries, and it still does. For instance, the export share is about 48.9% in Ukraine, 30% in Uzbekistan and 6.4% in Belorussia.However, in 2011 the company acquired 55% of the Ukrainian plant PAO Bilek. Since then the company is has its production in Ukraine and plans to expand further, for example to Venesuela, Iran, Argentina, etc. However, there is no information available o the strategy they are going to following in these expansions.
The management of the company states that this particular market was chosen because it is the second largest market in the CIS countries after Russian. Also the company they bought has a developed technology and can improve the range and quality of production.
Firm specific advantages used on the foreign market
The company is one of the biggest pharmaceuticals producers in Russia and is well known and very trustworthy. It also has a number of licensed medicals, which compile its unique range of products (250 names). It has comparatively low costs and uses more advanced technologies comparing to those used on the Ukraine market by its potential competitors.
First mover or follower
We didnít manage to find the precise information but we suppose that they used the follower strategy in the competitive market
Type of state involvementin the process of internationalization
No, the state did not participate in the expansion process directly. However, the Ukrainian state could have participated, probably, indirectly, as one of the shareholders of Pharmstandard in Ukraine is the son of the Ukrainian minister of healthcare.
Moreover, both Russian and Ukrainian enterprises cooperate with state and fulfill state demand for pharmaceuticals. Therefore, states somehow subsidize both companies.
Evaluationof the success of the internationalization
Pharmstandard is one of the biggest medicals producers in Russia and in Ukraine. This is complicated to judge on the success of the internationalization, as the company does not split its revenues into regions. However, we can assume that cooperation with the local producer could only benefit the growth of Pharmstandard sales. Therefore, we believe thet the process was successful.