Strategies of Internalization in the Industry of Mining Machines and Appliances

Izabela Jonek-Kowalska



Currently, the industry of mining machines and appliances in Poland, as a result of considerable economic improvement on the market of energetic resources, gains an incredible opportunity for further development. However, its use is dependent on the intensification of activity internationalization. Polish sales market, due to hard coal mining decrease and financial problems of mining enterprises, does not guarantee sales increase.Therefore, the basic objective of this article is to assess the currently used internationalization strategies of Polish enterprises performing in the industry of mining machines and appliances. In the article, in the theoretical part literature studies concerning enterprises internationalization are used. Next, the characteristics of the industry of mining machines and appliances in Poland are presented, ending with a SWOT analysis. In the part devoted to a strategy of internationalization, the results of a questionnaire research conducted in the group of producers of mining machines and appliances in the 2012 were used. According the research results, Polish enterprises from the industry of mining machines and appliances in the internationalization of their activity use the simplest strategies that do not require engagement of capital on foreign markets. Some examined enterprises have been functioning on popular markets, offering the same products. Other ones conquer new markets and/or modify the products in order to adjust them to geological-mining requirements of target markets. Diversification strategy is not used because of high risk. The examined enterprises are not able to use dumping, due to global competitors and Chinese producers. It is not profitable to use direct investments either in exploration and penetration. The reason is mostly a lack of recognition of markets remote geographically and culturally, as well as low domestic production cost which cause that Polish producers choose a focus strategy instead of a diversification strategy.


internationalization; internationalization strategies; industry of mining machines and appliances

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