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The Seventh Continent

GRINN Corporation | Avon Beauty Product Company | Pharmacy Chain 36.6 | Oriflame Cosmetics |


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State influence: The owners of the company are Alexander Zanadvornov (74,81% of shares), the fund of the family of the deputy of the State Duma Vladimir Gruzdev (10%). In 2008 the company was included in the list of companies which get the State support during the crisis.[33]

Internationalization:

Country Belarus
Year of entry 2006 (till 2011)
Industry/ business area Food retailer
Entry mode Joint venture with Triple group. Later the company increased its share till 51%. However, in 2011 The Seventh Continent sold its shares with a small profit form initial investments. This was done mainly because of the different goals and vision of two companies.[34]
Motives To develop the business of Triple, one of the largest trade and industrial groups of Belarus.
Firm specific advantages Experience of the company, leading positions in the home country.
First mover or follower Several competitors had already existed on the market.
Type of state involvementin the process of internationalization Till the year 2007 the deputy of State Duma had the significant amount of shares of the Seventh Continent, which indicates that the company had a state support when it entered the Belorussian market.
Evaluationof the success of the internationalization Failure.

IKEA Dom

State influence: Having being the non-listed private company, IKEA had a significant advantage over their listed competitors, whose main focus was on shareholders’ equity maximization.

Internationalization: Due to the high import tariffs IKEA had to rely on Russian supply chains (and not on their global supply chains). In 2002 IKEA sourced goods, which cost 50 million USD in Russia, after having invested 400 million USD into their Russian supply chain.

The IKEA’s aim was not only to gain Russian market share, but also to receive the access to valuable resources and production capacity (wood, plastics, textile) for its later use in the global IKEA network.[35]

Country Russia
Year of entry 1991 (the first supermarket was opened in 2000 only)
Industry/ business area Home furnishing
Entry mode Greenfield FDI. All stores are fully owned ventures by IKEA
Motives Rapid growth of the emerging Russian market. Move to Russia was seen as a long-term investments by IKEA’s management.
Firm specific advantagesused on the foreign market Positive attitude of customers who recognize the furniture of IKEA as cheap, easy and yet reliable and stylish.
First mover or follower IKEA was the first mover in the Russian market which opened the furnishing supermarkets.
Type of state involvementin the process of internationalization The main principle of IKEA has always been not to give bribes. There were several scandals with Russian authorities, which made it problematic for IKEA to develop its business in Russia. Anyway, the company is successfully operating in Russia.
Evaluationof the success of the internationalization Extremely successful.

Avilon AG

Avilon AG is a joint-stock company and it is fully owned by shareholders. State does not participate firm’s activities and does not support it.

Country Russia
Year of entry  
Industry/ business area Retail
Entry mode It is joint-stock company, which operates in the Russian market.
Motives Firm is not presented in foreign markets.
Firm specific advantagesused on the foreign market NOT PRESENTED
First mover or follower NOT PRESENTED
Type of state involvementin the process of internationalization State was not involved into the process of internationalization of this company and is not supposed to, as it does not fit its interests, and this process can only be caused by company’s and partners’ ambitions.
Evaluationof the success of the internationalization NOT PRESENTED

Sportmaster

The group of companies "Sportmaster" - a Russian company, a retailer that specializes in retail and wholesale sporting goods. Owner of the sporting goods store chain in Ukraine, Belarus and Kazakhstan. Headquarters - in Moscow.

Owners and management (allegedly the same): Chairman of the Board of Directors of GC "Sportmaster" - Fartushnyak Nicholas. The members of the Board of Directors - Fartushnyak Vladimir and Doyhen Dmitry. General Manager - Strakhov Leonid.

State is not involved into firm’s activities and does not support it.


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