Peculiarities and Implications of Market Entry Strategy Choice for Metallurgical Companies on the Post-Industrial Markets on the Examples of NLMK and Severstal in Europe and America

In the modern globalized market, metallurgical companies and steel producers utilize strategic marketing in general and market entry strategies in particular. Selecting the right entry strategy is crucial for a steel maker who wants to sell their products overseas. However, the existing research of entry strategy choice by metallurgical companies is insufficient. This research paper covers the peculiarities and implications of the choice of market entry strategies by metallurgical companies on post-industrial markets. For that purpose, case study on two Russian metallurgical companies - NLMK and Severstal - on European and American markets has been performed. The result of case studies show that the most suitable strategies for American market are brownfield strategies due to governmental protection of local steel producers and intensive industry consolidation in 2000s. For European market, direct export and greenfield strategies were effective in 2000s when there were fewer restrictions and larger volume of steel import from outside the region. However, later on as this import volume decreased and import duties were increased metallurgical companies began to favor brownfield operations in Europe.