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:
* Organization structure culture
Natura’s unique organization cultures are open-minded for opinion-expressing, transparent decision-making process, and intimacy with its stakeholders. The strong corporate value shared by every individual within this group make the expatriates from this company could convey the brand DNA in foreign market. * Brand visibility in global markets
Natura has a strong market position in Brazil, and continued building up the brand image in Latin American countries. However, it brand visibility is not strong enough in the rest of world and the brand image is weak in the European countries as well. * Global resourcing and distribution network
The raw material, production, product development is all in Brazil. Natura has yet built up the global logistic network; therefore, the distribution cost and inventory management would be the major problem for the company while it steps out globally. * Insufficient experience in expansion of global business,” dealing with different cultures, different social structure, and different consumer behaviors” Much of the international business experience of Natura is limited in Latin American countries. Although there is diversification in culture, consumer...