9. Eldorado

Country

The company is operating domestically: Eldorado stores are open in all Russian cities with population of 500 thousand residents and in over 90% of cities with population of 250-500 thousand; it was founded in 1994 in Samara.²¹

Year of entry

-

Industry/ business area

The company is within top five retailers of consumer electronics in Europe and top 10 retailers in the world (700 stores);

Electronics of the private label Elenberg (about 10% of sales) are produced in China and Turkey and then assembled in Kaliningrad;

«HiTechnic» is Eldorado service direction (Russia's largest professional services company: installation, connection, setting and repair of household appliances and electronics);

Specially equipped HiTouch show rooms of premium segment innovative and exclusive goods;

The company acquired the chain of consumer electronics Beringov (28 stores in 27 cities in the Central district) in 2012;

In 2005-2009 Eldorado developed the chain of cellular shops but they were sold to MTS due to financial complications;

Over 15 000 employees.

Entry mode

-

Motives (potential motives for future perspectives)

The company is rapidly growing and has the potential to diversify geographically; moreover, the company ownership by the foreign investor allows to enter international markets; another question concerns whether the same brand should be used abroad.

Firm specific advantages used on the foreign market

• Wide assortment of high quality electronics (over 20 000 items) of leading international brands;

• Strategic partnerships with leading international electronics producers (Bosch, Philips, Samsung, Sony, Panasonic, LG, HP, Nokia, etc.);

• Loyalty consumer programs (over 6 mln. participants);

• Strong marketing campaigns, intensive repositioning activities.

• Innovative format of new hypermarkets: design, goods display, WOW- and Live zones.

First mover or follower

Follower in import activities

Type of state involvement in the process of internationalization

No significant involvement of the state due to the competitive industry and the governmental regulatory function

Evaluation of the success of the internationalization

Successful import of leading international brands of electronics, except for the occasion when the company was convicted to use fictitious distributors in order to increase import tariffs (significant threat).