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Russian Standard Vodka: An Analysis of the International Expansion Strategies into the UK Markets - Dissertation Example
Author : abernathyjensen
Pages 11 (2761 words)
This research seeks to examine the reason behind Russian Standard's success in its international expansion strategy into the UK. It will seek to answer how and why Russian Standard managed to attain such a huge market share in the UK in such a short period of time. …
This study discusses that Russian Standard Vodka was launched in Russia in 1998. That year was the height of the Russian financial crises. After the Soviet Union collapsed in 1991, Russia went through a period of administrative chaos which affected various sections of the economy. “There were fluctuations, breakaways, a fall in the Ruble and a massive fall in quality standards”. This trend is somewhat logical because the collapse of the USSR led to the independence of various states that were part of the Soviet Empire. This came with a lot of unstructured changes and decisions. Some of the problems were connected to the inefficiencies inherited from the Commuist regime. Others were as a result of the transition from the one-party bloc of nations to a free market economy. As the crises increased, the Russian currency fell drastically and quality standards that had gone through a period of strain under Soviet rule were absolutely inadequate. Thus, one of the Russian entrepreneurs named Roustam Tarik decided to include something in his portfolio that could withstand the economic pressures. In 1998, Tariko's company, Roust Holdings decided to consolidate his hold on something that could be identified with Russia and could be produced according to high standards. “Tariko wanted to set up something that could be to Russia what Coca Cola is to America, Mercedes Benz is to Germay and Sony is to Japan”. Roust Holdings therefore settled on a Russian Vodka brand that people could identify with their country. They also sought to connect their brand to the highest standards. ...