This report stresses that Magnit and Cityline are the Russian organizations that do not have any kind of international presence. Huge popularity and high market share in Russia influenced these two organizations to decide to go for global expansion strategy. Magnit is one of the leading retail chains in Russia. On the other hand, Cityline is one of the largest internet service providers in Russia. Magnit is trying to target potential target customers in India as it is true that the demand for consumption of consumer goods in the retail chain has increased significantly among the target customers. On the other hand, Cityline is trying to follow B2B business model as the organization is trying to target the business units and organizations to provide high speed internet prices in competitive package prices. It is clear from above discussion that both the organizations can capitalize on several favourable external environmental opportunities.
This paper makes a conclusion that the external threats are quite minimal for both organizations. It is important for both of these organizations to develop an effective market entry strategy as the future performance in India is highly depending upon the developed market entry strategy. It is important for Magnit to follow Joint Venture Model in Indian market as it will help the organization in initial stages. The associated venture will help Magnit to get required business capital and operation resources in low cost. On the other hand, it will be effective for Cityline to follow Franchisee business model as it will help the organization to reduce initial political risks and high operation cost. The franchisee owners will help the parent company or franchiser or Cityline to develop effective customer base. ...Show more