Introduction 4
1. General characteristics of the organization external and internal environment 5
1.1 Company overview 5
1.1.1 History 6
1.1.2 Business model 10
1.1.3 Organizational structure 14
1.2 Key success factors 16
1.3 VRIO analysis 18
1.4 Situation on the tool market 20
1.5 Reason for building new supply chain 23
Conclusion to chapter 1 24
2. Selection of foreign market 25
2.1 International market selection procedure 25
2.1.1 Preselection 25
2.1.2 Preliminary screening 27
2.1.3 In -depth screening 27
2.1.4 Final selection 33
2.2 PEST analysis of Kazakhstan 39
Conclusion to chapter 2 45
3. Strategic recommendations 46
3.1 Exploring possible ways to building a supply chain 46
3.1.1 Transport companies 47
3.1.2 Local company 48
3.1.3 Opening a New Legal Entity in Kazakhstan 49
3.2 Financial part 51
3.3 Risk assessment 53
3.4The final choice option to build new supply chain 55
Conclusion to chapter 3 55
Conclusion 56
Reference 58
In the wake of the recent geopolitical tensions, the Russian power tool market has faced significant disruptions, with several major international brands withdrawing their operations. This has presented a challenge for "Baltopttorg," a big player in the industry, to adapt and build a new supply chain that can ensure the continued availability of high-quality professional tools for its customers.
The primary objective of this paper is to outline the strategic approach that "Baltopttorg" is taking to establish a new supply chain within the framework of the current sanctions’ environment. The company aims to maintain access to the in-demand European-manufactured power tools that are crucial for its business operations.
The paper will delve into the specific steps and considerations involved in this supply chain transformation, addressing the logistical, regulatory, and financial challenges that "Baltopttorg" must navigate. It will also explore the potential benefits and risks associated with the proposed supply chain model, and will guide the company's decision-making process. To achieve this goal, the following tasks will be addressed:
1. Provide a comprehensive analysis of the company's external and internal environments.
2. Identify potential markets suitable for the solve of the managerial problem and select the most promising ones.
3. Explore possible options to import and choose the most suitable for Baltopttorg.
4. Formulate an import plan that aligns with the company's objectives and resources.
In the first chapter, we will provide an overview of the Baltopptorg company's operations in the domestic market, identify its key success factor and analyze the resourses using VRIO framework. In the second chapter, we will provide international market selection through analyzing factors which can influence the possibility of building the supply chain, utilize the PEST analysis to analyze potential of the chosen country. This will help us determine whether it would be prudent for the company to start working with this market. Based on the findings from the first two chapters, we will present possible strategies for entering the selected markets in the third chapter. We will assess the risks and costs associated with each strategy and provide recommendations for building new supply chain based on our analysis.
In conclusion, this document provides a detailed analysis of the strategic approach used by Baltoptorg to overcome significant disruptions in the Russian power tools market caused by recent geopolitical tensions. Through careful analysis of both the internal and external environment, potential markets and strategic options, we have developed a comprehensive plan for building a sustainable supply chain that ensures the continued availability of high-quality professional tools.
Our analysis began with a thorough examination of Baltoptorg's activities in the domestic market using Key success factors to identify strengths of the company, the VRIO system to identify key resources and opportunities that contribute to its competitive advantage. This fundamental understanding has played a crucial role in identifying the strengths that Baltopttorg can use to transform its supply chain and the reasons to build a new supply chain.
We then conducted an international market selection process using a number of criteria that allowed using PESTL analysis methodology to assess the feasibility and potential of Kazakhstan market. This thorough analysis helped us justifythat the market of Kazakhstan is suitable for building a supply chain.
Based on the results of the market analysis, we have proposed several strategic options for entering the selected markets. Each strategy was evaluated in terms of its associated risks, costs and compliance with the goals of Baltopttorg. In the end it was recommended to use transport companies in order to start building new supply chain. Our recommendations have been developed in such a way as to balance the need to maintain access to in-demand European-made power tools with the problems associated with the current sanctions.
Thus, the strategic approach outlined in this work provides Baltoptorg with a roadmap to overcome current challenges in power tools market. Systematically eliminating logistical, regulatory and financial obstacles, Baltopttorg has every opportunity to adapt to changing conditions and further provide high-quality professional tools to its customers focusing on domestic market.
