GRINN Corporation

State influence:

1. Ownership type: Corporation GRINN owns hypermarkets chain «Linia», chain of restaurants, hotels, a trade and entertainment center, official car dealer business, logistics center.[38] The corporation is fully owned by the deputy of Kursk and Orel regions Nikolai Greshilov who is actively participating in political life of Kursk region; he also owns the newspaper «Drug dlya druga» (For each other) which he also uses for political purposes.

2. State support: the corporation is participating in construction projects of trade centers and hotels, a.k.a. objects of social importance. Theoretically speaking, the director can use its political leverage and connections, however, no support thereof was found in the press. In mass media it is said that the corporation usually constructs objects rather quickly and efficiently.[39]

Internationalization:

Country	The company is operating domestically within the Central Federal District of Russia[40]. It was founded in 1992 in Kursk[41]
Year of entry	-
Industry/ business area	«Linia» (Line) is an interregional hypermarket chain of «Cash & Carry» format; There are 22 food hypermarkets and 2 supermarkets.
Entry mode	-
Motives	No internationalization yet
Firm specific advantagesused on the foreign market	· Low pricing (due to efficient logistics); · Wide assortment; · Own bakery, confectionary, meat and fish production; · 24-hour service.
First mover or follower	-
Type of state involvementin the process of internationalization	No internationalization yet
Evaluationof the success of the internationalization	No internationalization yet

Business Car

State influence:

The structure of the company management shows that there are no state authorities involved in operations of the company.[42]

No reference for state financial (or other type of) support for LLC SP Business Car was found in open sources. However, various state regulations concerning vehicles transfer are involved in the process, so the state authorities mostly monitor and regulate the company business.

Internationalization:

Country	It is domestically operating in 14 dealerships Moscow, Voronezh, Kemerovo, Kursk, Astrahan, Krasnodar. It started business in 1991 in Moscow.[43]
Year of entry	-
Industry/ business area	The company is owner of Russia's largest network of authorized dealerships (one of the most dynamically developing companies in Russia and aborad): sales and servicing of Toyota Motor Corporation cars (Toyota and Lexus), sale of spare parts, accessories and paints; more than 20 years of experience in the automotive repair and service market; a leader in its field. Additional business activities include: car rental, trade-in, financial and insurance services, maintenance of industrial equipment.
Entry mode	-
Motives	No internationalization yet
Firm specific advantagesused on the foreign market	· Operations in accordance with the high standards provided by the manufacturer to the dealers: certificate of approval of the vehicle and warranty for 3 years or 100 thousand km; · Big space of show rooms with full range of cars; · High quality consumer service (numerous awards); · Issuing of the Business car magazine.
First mover or follower	-
Type of state involvementin the process of internationalization	No internationalization yet
Evaluationof the success of the internationalization	No internationalization yet

Centr Obuv

State influence:

1. Ownership type: Structure of capital of Centr Obuv is as follows: Sergey Lomakin and Artem Khachatryan (33%), founders of the chain Anatoly Gurevich and Dmitry Svetlov (controlling interest), Leonid Makaron (up to 10%).[44] The company is planning to conduct IPO in 2013 to attract financing and proceed its successful development.

2. State support: no significant state support as the industry is rather competitive.

Internationalization:

Country	The company is operating domestically in more than 900 stores and covers more than 300 cities in Russia. It started its business in 1992 as a shoe wholesaler, later shifted its strategy to develop as a retail chain. It also has stores in Ukraine (Dnepropetrovsk, Kiev, Krivoi Rog, and Kharkov) – the country has cultural and habitual similarities when it comes to consumer behavior; moreover, competition in such low price segment was attractive and lucrative as there were not so many players at the market. Further on the company is planning to enter Slovakian and Baltic markets.
Year of entry
Industry/ business area	The company is Russia's leading and largest shoe retailer with the 4.3% market share[45] (in segment fashion, according to the rating of Russian trade networks INFOLine Retailer Russia TOP-100, 2011); Two distinct brands: · family stores Centr Obuv, · Centro for youth shopping of the fast-fashion format. Complementary goods along with accessories can also be purchased in stores.
Entry mode	Franchising of Centro stores in Ukraine (100 stores), Poland (65 stores)[46] and Baltic countries (Latvia, Litva); the company is planning to proceed with foreign markets penetration using M&A strategy (the target is twice as many stores for year 2013[47])
Motives	The company was diversifying horizontally as it was successful at the domestic market in Russia; the format itself is rather promising at new markets as well.[48]
Firm specific advantagesused on the foreign market	· Fast turnover of goods and fast fashion concept (format of stores); · Low pricing, economies of scale and substantial purchasing power; · Strong marketing, high brand recognition in Russia; · Usage of specific software for supply chain optimization (namely inventory management)[49]; · High expertise while working with Chinese suppliers and smooth supply flows.
First mover or follower	Follower at the Ukrainian and Polish markets as shoe retail industry is competitive.
Type of state involvementin the process of internationalization	No or insignificant state involvement as the industry is rather competitive.
Evaluationof the success of the internationalization	This is a successful example of gradual internalization into countries of similar consumption patterns (Ukraine, Poland, countries of the Baltic region).

Globus

State influence:

1. Ownership type: The company Globus is a resilient international family-owned business that has been successfully operating since 1828. Hypermarkets in Russia (LLC Hyperglobus) are fully owned by the Globus company.

2. State support: state authorities monitor the company operations, proper licensing agreement fulfillment, conditions of storage of the goods and their sale, etc., so state regulations are necessary in this process.

Internationalization:

Country	The company is present in Germany, Czech Republic and Russia (5 hypermarkets: Moscow region (Klimovsk, Chelkovo), Vladimir, Ryazan and Yaroslavl); The business started from a small German private food store in 1828 and then the first supermarket opened in 1949.
Year of entry	2006 – entrance into the Russian market
Industry/ business area	A multinational retail chain of hypermarkets (37 stores), construction stores and hypermarkets of electronic technics (60) in Germany and trade centers, hypermarkets and construction stores in Czech Republic (13)[50]; Over 23 000 employees internationally
Entry mode	Five hypermarkets in Russia with 650-850 employees in each store – LLC Hyperglobus, fully owned subsidiary; In April 2012 LLC Hyperglobus attracted credit from EBRD in amount of 117,5 mln Euro in order to construct 4 hypermarkets in Korolev, Krasnogorsk, Zelenograd and Tver.[51] EBRD already lent 134 mln Euro to LLC Hyperglobus.
Motives	The company target is to become leading discounter at the market; the Russian market has a lot of potential in terms of the market volume and growth.
Firm specific advantagesused on the foreign market	· Family atmosphere; · Products of local manufacturers (especially fresh products), market-tailored assortment; · Format of discount hypermarket – low pricing and wide assortment; · Smart merchandising and navigation between trade zones; · Own meat, salad production, bakery and café; · High technology efficiency of business processes; · Additional services include consumer loans, exchange of goods, free transportation.
First mover or follower	The company is certainly a follower in Russia (so is in Germany and Czech Republic) as food store market has been always rather competitive starting from 1828 when there were specialty shops till now when there are chains of hypermarkets and discounters worldwide and in Russia in particular.
Type of state involvementin the process of internationalization	No or insignificant of state involvement due to competitiveness of the industry and German origin.
Evaluationof the success of the internationalization	This is an example of successful example of internationalization as the company could benefit from country-of-origin effect and competitive advantages in discounter segment.

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