Essay on Creme Co’s Russian Expansion

We have to discuss that what are the major problems or challenges have face by the crème co in the Russia while starting business. In many areas company has to face problems like road transportation, procedures and laws, employees, interest rate, market supply chain and many others. The basic problem regarding this that for every variable Russia want proper documentation but company in regular not use too much detailed documents for any process. So company has to follow the procedures issue by the Russia and then start its business in its market according to new requirements. Company also face issue related to distribution of network because there are restriction for the international companies that they only capture a limited part of the market so company is going lost its major share of profit due to this limitation. With this company also has to bear a lead cost of inventory in high amount because a high demand considers in such countries and the transaction of company is going to expand at high level. So it’s the responsibility of the company to determine all the charges according to their limited budget and they properly start up the business. And best option for the company to make partnership with local LSP as the company has to face new market and it is not aware off all the pros and cons of the market in depth so it’s better for him to move with local entity to obtain all knowledge about the internal market and what strategies are going to used while working in the market. In Russia there are very difficult rules and regulations that create many problems for the company and they also produce and sell their product with great difficulties. Furthermore company takes some time to adjust in the environment of Russia.

Summary for presentation of Crème Co’s Russian Expansion

As we know that in Russia many strict rules and regulations have to follow all those organizations who want to do work in Russia and get proper earning. Because Russia has a great market and many opportunities so many barriers are also face by the company to obtain its market share in that country. A complete set required by the company to run its business and for complete set up each and every thing is important like labor, interest rate, transportation, delivery time and many others. These are all very important variables because without them no any company can move forward. Russia have very tough rules for all those companies who are come outside the country and also deal at international level because they want to promote their local products as compare to international products. So in this regard, they also limit the entrance of the company in the internal or local markets and they can only sell their products in the limited market which effect their profit and earning. So Russia not too much supportive for the international companies. We also know that Russia have in-depth strategies related to their markets and local marketers so company has better option to merge with the local company and enter in the market to get all the detailed information about the markets and also consider the strengths and weakness related to market. Company want to capture the market in positive way and also more and more customers so they must know the strategies and tactics that are going to used in the markets of Russia that enhance their profitability and also make their position strong and long lasting because it has a great market and many customers are going to attract in this market.