- •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
12. Evroset
State influence: Negative influence of Belarusian state requirements were noticed.
Internationalization: Currently Euroset manage more than 5000 outlets in Russia and in Belarus.
Country |
Belarus |
Year of entry |
2005 |
Industry/ business area |
Mobile phone retailer |
Entry mode |
Export. Outlets’ opening. |
Motives |
Promising market (in 2006 the subscriber base of Belarus increased several times). Growing demand, no competition. |
Firm specific advantages used on the foreign market |
Flexiblity of the company, which allowed to Euroset to rapidly advanced to a leading position in the market. High quality after-sales service, low prices. |
First mover or follower |
The company was the first mover. Wireless equipment retail market in Belarus didn’t have any serious competitors at the time Euroset appeared there. |
Type of state involvement in the process of internationalization |
Euroset faced the strict state requirements when it entered the market of Belarus. All mobile phones sold via the Euroset network were imported to Belarus legally in strict conformity with the Belarusian legislation. Time-consuming certification procedures in Belarus were also quite difficult for the company.31 |
Evaluation of the success of the internationalization |
Successful due to the profitability and business development in Belarus. |
13. Leroy Merlin Vostok
State influence: Leroy Merlin, founded in 1923 in France, is a part of Adeo group, which unites more than 300 supermarkets in 10 countries of the world.
Internationalization:
Country |
Russia |
Year of entry |
2004 |
Industry/ business area |
DIY (do-it-yourself) retailer |
Entry mode |
FDI. The company prefers to construct and open its own supermarkets (greenfield strategy) .However, sometimes it buys buildings for its supermarkets (brownfield strategy).32 Leroy Merlin supermarkets usually have the ares of 8 000 до 20 000 squared meters. |
Motives |
High potential of the Russian market. Increasing demand for the supermarkets where it possible to buy all the DIY goods. |
Firm specific advantages used on the foreign market |
Good geographical location, understanding of customer needs, high quality of service, low prices. |
First mover or follower |
Follower. One of the main competitors OBI entered the Russian market earlier. |
Type of state involvement in the process of internationalization |
No or not significant state involvement due to increasing competitiveness of the market. |
Evaluation of the success of the internationalization |
Successful. Leroy Merlin has 22 supermarkets in 11 cities of Russia. Russian customers visit these supermarkets regularly, thanks to the wide range of goods offered and low prices. |