Irkut's Expansion Strategy


Code : COM0019

Year :

Industry : Aircrafts and Ship Building

Region : Russia

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: With the collapse of the erstwhile Soviet Union in 1991, IRKUT Corporation (IRKUT), which was established in the 1930s to manufacture military aircrafts in Russia was witnessing formidable problems.

IRKUT was privatised in 1992 and with the decline of defence expenditure of the Russian government, the company decided to focus on manufacturing commercial aircrafts. To raise the necessary funds required for its new venture, IRKUT decided to launch its Initial Public Offering (IPO) by the end of March 2004, the first ever IPO in the defence industry of Russia.

Pedagogical Objectives:

  • To discuss the expansion strategies adopted by IRKUT to transform itself from a state controlled military aircraft manufacturer to a profitable commercial producer.
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    Keywords : IRKUT Corporation; Irkutsk Aviation Plant; Alexey Fedorov; Su-30 and Su-27; Irkutsk Aviation Industrial Association; Kaskol Group; Multipurpose unmanned aerial system; Multirole transport airplane; BE-200; United Aircraft Manufacturing Holding; Growth Strategies Case Study; Yakovlev; Hawkins and Powers Aviation; Yak-130; European Aeronautics Defence and Space Company; Rolls Royce

    Contents :
    The Inception
    Up, Up and Away
    A Flight to the Future

    Case Introduction >>

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