- •St. Petersburg State University Graduate School of Management
- •Analysis of the Russian retail industry and companies’ motives for internalization.
- •Introduction
- •2. Magnit
- •3. Auchan
- •4. Rolf Group
- •5. M.Video
- •6. Dixi Group
- •7. Lenta
- •9. Eldorado
- •10. Svyaznoy
- •11. Avtomir Group
- •12. Evroset
- •13. Leroy Merlin Vostok
- •14. The Seventh Continent
- •15. Ikea Dom
- •16. Avilon ag
- •17. Sportmaster
- •18. Nezavisimost Group
- •19. Atlant-m Holding
- •20. Crocus International
- •21. Media-Saturn Russia
- •22. Real
- •23. Monetka
- •24. Grinn Corporation
- •25. Business Car
- •26. Centr Obuv
- •27. Globus
- •28. Avon Beauty Product Company
- •29. Atak
- •30. Pharmacy Chain 36.6
- •31. Roznitsa-1
- •32. Holiday
- •33. Oriflame Cosmetics
- •34. Azbuka vkusa
- •36. Genser
- •37. Amway
- •38. Major Auto
- •33 “Российские компании, которые получат господдержку. Полный список”.25.12.2008 http://ria.Ru/crisis/20081225/158098785.Html
- •63 “В Украину выходит сеть «Азбука вкуса»”. Building. 25.01.2013.. Http://building.Ua/V-Ukrainu-vyhodit-set-Azbuka-vkusa
34. Azbuka vkusa
Azbuka vkusa is a private retail chain opened in Moscow in 1997.
Internationalization: Company is not internationalized. However, Azbuka vkusa, the premium product retailer. has several competitive advantages, which build its potential for geographical expansion in Russia and in abroad in the future. The company plans to open its first outlets in Kiev soon. In 2007 Azbuka vkusa tried to do so, but denied the idea because of financial criris.
Country |
Ukraine |
Year of entry |
2013 (probably) |
Industry/ business area |
Food retailer |
Entry mode |
Company plans to open outlets in Kiev. |
Motives |
Business development of the company, potential of the Ukrainian market |
Firm specific advantages |
Focus on quality of products, atmosphere in the shops and time consumers have to spend in the shop, not on the discounts; the same structure of all supermarkets to make the shopping process more convenient; product division on several price categories ( premium (e.g. fruits from Japan), middle, low); eco-products62
|
First mover or follower |
There are several premium retailers which already exist in the Ukrainian market “Furshet Gurman”, “BK Select”, “Kosmos” “Spar Gourmet”. 63 |
Type of state involvement in the process of internationalization |
No, but the Regional program of development allowed to company to enhance its position in the Russian market till 2010, which allows to Azbuka vkusa now to expand abroad. |
Evaluation of the success of the internationalization |
There is no internationalization yet. |
35. OBI
Internationalization: OBI is German DIY (do-it-yourself) retail which was founded in 1970. It is privately owned by the Tengelmann Group. The internationalization map of the company is quite large. OBI supermarkets exist in 13 countries nowadays.
Country |
Russia |
Year of entry |
2003 |
Industry/ business area |
DIY retai |
Entry mode |
Franchising. Company has its own franchising center in Moscow64, which operates as a subsidiary of Tengelmann Group. OBI Franchise Center (OBI Franchise) is a retailer of home improvement products, based in Russia. It operates a chain of hypermarkets offering home building, repairing , finishing and gardening products.65 |
Motives |
Market saturation of mature markets made the company move towards emerging Russian market, which had a huge potential, no competitors and high demand ( many Russians have their own country-house “dacha”) |
Firm specific advantages used on the foreign market |
OBI was the first supermarket where customers could find all necessary goods for repair and gardening works. Before the opening of OBI Russian customers had to buy these goods in different smaller shops. |
First mover or follower |
OBI was the first DIY retail chain which came to the market. The grand opening of two supermarkets in Moscow in 2003 was extremely impressive. Being the first mover, OBI managed to attract big customer audience to the shops. |
Type of state involvement in the process of internationalization |
There was not significant state involvement due to the potential growth of competition. |
Evaluation of the success of the internationalization |
The internationalization of the company in Russia was extremely successful. The percentage of OBI’s sales in Russia is much higher than in the other countries. |