Subject area:                      Competitive Strategy, Corporate Level Strategy, International Business Strategy, Sustainability & Development

Region:                                   Ukraine

Industry:                                Energy

Company:                              DTEK

Decision Maker:                Maxim Timchenko, CEO

Dilemma: DTEK is a Ukrainian private energy company that was founded in 2005 and operates in diversified businesses: renewable energy, coal production, electricity generation, oil and gas exploration and production, electricity distribution, electricity supply, and trading in power, gas, coal, and gas condensate.

DTEK is 100% owned by the SCM Group, whose major shareholder is Rinat Akhmetov. DTEK is run by the CEO, Maxim Timchenko and Executive Director Dmytro Sakharuk, who looks to continue DTEK’s Renewables Investment project. Despite the challenges DTEK is facing in its home country, the company feels that it is advantageous for them to begin expanding into the global marketplace.

As Maxim Timchenko continues to face intense pressure to keep Ukraine’s energy supply stable despite Russian attacks, he must also simultaneously devise a plan for the global expansion of DTEK renewable energy. With a wholly owned subsidiary in the Netherlands, DTEK is looking to prove its strength and leverage its industry experts to provide greater access to renewable energy. The decision to be made is how and where should DTEK expand its renewable energy business into?

Is the United Kingdom or South Korea a viable option for DTEK? Although DTEK is eager to expand its renewable energy segment outside of Ukraine, the company must consider numerous factors to ensure compatibility and alignment. A detailed analysis of DTEK’s core competencies, an in-depth market analysis, and potential market entry strategies will be vital aspects to help DTEK reach the best decision for international growth and sustained profits.