Avon Beauty Product Company

State influence:

1. Ownership type: there is a Russian representative office of AVON Products Inc.- a leading global beauty company, with over $11 billion in annual revenue. As the world's largest direct seller, Avon markets to women in more than 100 countries through over 6 million active independent Avon Sales Representatives. The company was founded in 1886 in the USA.

2. State support: there is no significant state aid as the industry is rather competitive; state authorities monitor the company operations, proper licensing agreement fulfillment, conditions of goods sale, etc., so state regulations are necessary in this process.

Internationalization:

Country	In 1993 AVON wholesale trade started in Russia; the country was considered as one the most dynamically growing markets[52]
Year of entry	1993 (Russia), company foundation in 1886 and further global expansion; 2004 – construction of AVON plant in Naro-Fominsk (Moscow region)
Industry/ business area	Avon's product line includes beauty products, as well as fashion and home products, and features such well-recognized brand names as Avon Color, Anew, Skin-So-Soft, Advance Techniques, Avon Naturals, and mark.
Entry mode	Wholesale import (1993), direct representatives registration (1995), construction of the plant (2004)
Motives	Substantial financial resources for implementation of global expansion; constant diversification of product portfolio and geographical diversification; Russia - fast development of the Russian consumption patterns and of the market – promising and a lot of potential.
Firm specific advantagesused on the foreign market	· Direct sales and wide outreach through over 6 mln. representatives, · Strong and catchy marketing (breast cancer campaigns, celebrities, etc.) and high brand recognition; · Early start at the Russian market.
First mover or follower	The company wasn’t the first mover at the market as Oriflame was already at the market since 1992 but it still enjoyed benefits of early start of the market penetration.
Type of state involvementin the process of internationalization	No or insignificant help of the government due to high competition at the market
Evaluationof the success of the internationalization	Internalization was extremely successful as the company decided to increase its presence at the market and sales revenues obviously boosted throughout the years of presence at the market.

ATAK

State influence:

1. Ownership type: The French chain Atac of discounters is fully owned by Groupe Auchan SA.

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 as well as in the process of opening the object for its utilization. For instance, there was a scandal when one of the supermarkets was factually already put into use without authority permission to exploit the object.[53]

Internationalization:

Country	They are present in 5 countries: France (Atac and Simply Market), Italy (Simply Market), Spain (Simply Market), Poland (Elea) and Russia (ATAK). All in all there are 2225 stores (726 own stores and 1499 franchisees).[54] ATAK Russia includes 72 supermarkets-discounters located in Moscow, Moscow region, Vladimir, Kaluga, Ryazan, Tver, Tula, Yaroslavl and Nizhnii Novgorod. Auchan was already present at the market.
Year of entry	AuchanSuper was opened in Russia in 2004; in 2005 the first supermarket appeared.
Industry/ business area	It is a chain of food discounters designed for customers who live within walking distance of shops. All shops are open daily from 9:00 to 22:00. Atac supermarkets generate 18% of turnover of Auchan Group; Over 28 000 employees internationally.
Entry mode	ATAK supermarkets are a part of and represent Auchan in Russia.
Motives	Auchan had already been successful at the Russian market (since 2002) that is rather lucrative and promising because of its size, growth and purchasing power of consumers. Moreover, Auchan parent company could use other markets as the benchmark and forecast success at the Russian market.
Firm specific advantagesused on the foreign market	· Discounter format – low pricing, relatively narrow assortment, fresh products; · Positioning - neighborhood stores within walking distance; · Private labels of Auchan.
First mover or follower	Follower at the Russian market as the industry of supermarkets is rather competitive at the promising Russian market.
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 an example of successful internalization into the Russian (and other) market (-s).

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