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36. Genser

State influence: Genser is a private Russian car retail company. Heirs of Igor Ponomarev and Vladimir Pronin own 51% of company’s shares. 28% is under control of the investment fund Volga River, 21 % of shares belong to the fund Solway Investment. In 2009 Genser attracted investments from Solway Investment, Russian private equity investment fund, located in Cyprus and specializing in international strategic investments. This step was done due to the significant decrease of car sales and lack of bank’s support in the debt conversion. 66

Internationalization: In 2005 Genset group started to realize its regional program aimed at creation of the commercial network in different Russian cities. Nowadays Genser’s outlets exist in 5 Russian cities.67 Genser doesn’t have any plans for expansion abroad.

Genser has a strong development potential. The company offers to its customers variety of cars in all price segments. The main competitive advantages of the company are: unique service base, highly-qualified personnel, who have trainings in specialized car producers’ centers, high technical level of all company’s outlets.

37. Amway

State influence: Amway is a private company founded in 1950s by Jay Van Andel and Rich DeVos.

Internationalization: Amway measures its success in a country not only with the amount of sales and profitability, but also with degree of its involvement in charity programs. Amway Russia is one of the largest corporate donors in Russia. Current Amway’s charity projects are aimed at both education and medical care. Five social and sport projects oriented at disabled children, orphanages, children in a difficult real-life situation are organized in Russia nowadays.

From 2007 until 2011 Amway donated about 76 million RUB for implementation of corporate social responsibility projects in Russia.68

Country

Russia

Year of entry

2005

Industry/ business area

Nutrition, beauty and household products

Entry mode

Export. OOO "Amway" is a member of the Russian Direct Selling Association (RDSA) that consists of direct selling companies operating in Russia.

Motives

Business development. Empty niche of ecological detergents in Russia. Growing understanding of Russian customers of necessity to care about the environment.

Firm specific advantages used on the foreign market

Opened in Moscow in 2008, Amway Training center helps to raise public awareness about Amway, its brands and services. Different media and corporate events occur there.69 The widely-known charity orientation of the company. Ecological essence of the products. Dedication to the environment.

First mover or follower

Amway has its own niche on the Russian market, where there are no significant competitors.

Type of state involvement in the process of internationalization

No direct state involvement in the process of internationalization. Social responsibility of Amway, however, creates a positive attitude toward the company, which might do a favor during the process of internationalization.

Evaluation of the success of the internationalization

The internationalization of Amway in Russia was successful. There is a huge base of loyal customers in Russia nowadays. Brand has a strong positive image and opportunities for further expansion in Russia.

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