Whether Natura, the Brazilian beauty company, based on biodiversity of Brazil, should expand its business in Russian market is the critical issue of this case study. However, it is necessary to inspect pre-issue before we evaluate the international investment strategy. After reviewing whether the company is capable of dealing with globalization, we move on to measure the Natura’s international marketing strategy. Is Russian the best next step for Natura’s international foot for? If yes, we propose the possible alternatives for entering this market by minimizing the political risk and operating risk. (1) Was the company ready to go globalization?
Evaluating criteria as follows: * …show more content…
* It took time to build up its own local network in stakeholders since there is no manager who can deliver the brand DNA knew the Russian market. * Mastering the delivery network in the Russian markets would be the potential problem for Natura. * Natura would face the challenges in global logistic while its products were manufactured, shipped from Brazil. The shipping cost, inventory management, timeliness of products, ordering system within subsidiary in Russia and parent company would be the key issue to expand business in Russia. * The weather in Russia is totally different from Brazil. It would be a main concern that Russian would not like to trust a brand from Amazon region. * The local regulation in cosmetics and skin-care should also be taken into account.
After assessing the key factors in entering Russian market, we can find that the Russian market is not mature enough to penetrate for Natura which was not equipped with sufficient experience in global business management and had a strong willing to preserve its brand DNA. Since Russian consumers were not respectful the nature and environment, the market did not attached to this brand DNA in that moment. Furthermore, due to the political situation and business environment, the experience in Russia could not duplicate or be applied after micro-adjustment in other western countries. (3) Following preceding question, if yes, what is the best