This thesis is devoted to a Russian industrial distributor’s existing business strategy adjustment regarding a Taiwanese machine tool manufacturer. For this aim, company internal, external and SWOT analyses are performed; market segmentation is categorized into Chinese, Taiwanese, South Korean and Japanese/German machine tools; and formation of a new segment of Russian-made machine tools is detected. Major goals for current business strategy improvement are set. To reach a new customer type - state-owned corporations – the distributor’s organizational structure is adjusted, and advanced Taiwanese machine tools are addressed to this customer segment. To expand sales in the privately-owned customer segment, cooperation has begun with Chinese factories of a Taiwanese machine tool manufacturer. To enter the new Russian-made machine tools segment, assembly licensing strategy was implemented, and manufacturing licensing strategy was evaluated. Together these steps have already significantly improved current business, and further business development is forecasted.

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