Individual Natura case study preparation paper
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: *
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However, for the rest of markets with totally different language, culture background, religion, regulations, Natura has no sufficient experience and knowledge to manage it. * Sufficient talents in global management
During this period, there have no sufficient managers with global vision and management expertise in Natura. Even though managers from other firms have the skill in running direct selling, they could not convey the company’s value and brand DNA. This shortage of human resource would be another obstacle for Natura’s globalization.
Sub-conclusion:
After analyzing Natura’s competences in globalization, we found that Natura was just at the beginning stage of globalization although it started its international business from 1982. From the financial result, we still could find out that Natura had no prominent performance in foreign market. (2) Was the Russia is the best choice to next step in Globalization? Is Russian experience valuable to the Naura’s globalization?
Assessment of Russian market * Bureaucratic system * Unawareness of product quality and unconcern about the environment and nature. * Russian was becoming familiar with the direct selling; therefore, the education cost for sales rep. and consumer would be relatively lower than other markets which have low acceptance in direct selling.
Assessment of Russian cosmetic and skin-care market * Consumer in Russia did not care about the natural products and knew nothing
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