China-USA Business Review, ISSN 1537-1514 August 2013, Vol. 12, No. 8, 815-822 Analyzing of Investment Strategies of Local Companies in Azerbaijan: Problems and Solutions Fariz Ahmadov, Matanat Salmanova Azerbaijan State Economic University, Baku, Azerbaijan For businesses to be viable nowadays they must be able to invest successfully. Globalization insists that businesses track new innovations and remain open to the idea of change. In addition, businesses need to stay informed of new technological trends, retain the shareholders they already have, and be ready to invest in innovative technologies when they are introduced. Through these strategies, businesses can be competitive in the marketplace. Short- and long-term planning is necessary to identify the direction of both investments and new projects and project ideas. Two major obstacles to implementing these pre-planned strategies are insufficient in-house resources and lack of access to loans. Companies need to be realistic about what they are capable of and make sure that all new ventures tie into the existing capabilities instead of risking starting a product or service unrelated to the existing business. Projects that are undertaken must be thoroughly researched as alternative options in case the need arises to change direction. Companies should be prepared with a plan and be prepared to move to a secondary plan if the first plan meets with obstacles. In this way, companies can be well informed, prepared, and still versatile enough to meet the needs of the globalized competitive market. A proposed article describes details of the theoretical part of the business investment strategy. The themes of the research are mainly about identification of economical perspectives of the investment, type of investment, identification of investment strategy overview, and its components as well as forming of investment strategy stages. Afterwards, in proposed investigation taken place analyzing of investment risks that might be faced by companies focusing on business investment and their investment capacity based on exist strategy. Research methodology included survey, interview, and critical literature. At the end of research work, it provided expected results of the development of the investment strategy of local companies situated in Azerbaijan. Keywords: investment, strategy of investment, investment analyzing, local companies Theoretical Grounds of a Company’s Investment Strategy Until 80s of the 20th century, investment could only be come across in American and European literatures. Basic definition of investment activity was capital investment. However, capital investment is a narrow definition, as it only means investments in main foundations. Other economic resources such as information resources, securities, and material reserves were not considered as investments. Fariz Ahmadov, Ph.D., Associate Professor, Department of Economy and Business Administration, Azerbaijan State Economic University. Matanat Salmanova, Research Assistant, Azerbaijan State Economic University, Turkish World Business Administration Faculty. Correspondence concerning this article should be addressed to Fariz Ahmadov, Baku, H. Aliyev, str., 135, Azerbaijan. E-mail: farizazeri@yahoo.com; salmanova_m@hotmail.com. DAVID PUBLISHING D