The environmental factors are aspects to take into account when companies try to enter in a new international market. Environmental factors are studied through the macro – environment, one of the tools used to analyze the macro – environment is the PESTEL (Political, Economic, Social, Technological, Environmental and Legal) model, this analysis provides thecompanies with a list of the possible success or failure when entering a new market.
So if Nespresso want implemented in a new international market, Russia, they should make an analysis of the macro – environment, industry and sector, and competitors.
Nespresso offers a distinguished product focused on a particular market segment. Market segment is a group of customers with similar needs that aredifferent from the needs of customers in other parts of the market. Nespresso should remember some questions about the segmentation of markets: consumer needs, market share relative to competitors, and how they can be identified and served market segments. Once Nespresso identify market segments must find their strategic customers are the people that the strategy is primarily directed (Jonhson, G. –Scholes, K. – Whittington, R. (2010): Fundamentals of strategy. Ed. Pearson, Madrid).
- POLITICAL AND LEGAL
Political environments vary rapidly between countries and can alter rapidly and Legal includes legislative restrictions or changes. Russia since the fall of communism has experienced frequent swings in favour and against foreign private enterprise. Nespresso should be noted that therating for Russia as a country risk is C, declined after the 2008 crisis risk country of B to C (COFACE, Trade risk under control, 2009). The fight against corruption as one of the main objectives in Russia. Despite all efforts by the government, the necessity of paying bribes to Russian aims to walk in all aspects of your life. Market access on the Russian state is taking steps to reform itsforeign trade. His next entry into the WTO will result in a relaxation of the system. It is a gradual process that will undoubtedly encourage the entry of firms in the country. As of July 1, 2006 Russia agreed to full convertibility of the ruble in international transactions and has eliminated restrictions on foreign currency transactions. In the Russian Federation establishes the following taxes andduties: federal, regional and local.
Nespresso has to take into account macroeconomic factors in Russia. Russia, Brazil, India and China according to Goldman Sachs could become dominant economies in 2050 due to its economic potential.
Bankruptcy on September 15, 2008 of U.S. bank Lehman Brothers blew up the global economy and Russia was not spared. Like the rest of the world, Russiaalso suffered from the crisis. The country's economy, seriously affected, shrank 7.9% in 2009, having recorded a growth of 5.6% in 2008, but the Russian economy is recovering from the crisis although it has not reached yet the activity levels the country had before (Rosstat, 2010). The OECD developed an economic study and concluded that this recession would be desirable to strengthen macroeconomicpolicy, improve the business environment, reduce corruption, developing tougher laws and increased energy efficiency.
At the annual conference of the Adam Smith Institute in London, the deputy ministers of Finance and Economy of Russia, plus the vice president of the Central Bank of Russia spoke on banking issues and provided a broad overview for 2011 in Russia. While most developed countriesare hard pressed by the huge public debt and large fiscal deficits, Russia has the best ratio of debt to GDP of all major countries. According to its GDP, Russia is positioned in the top ten countries all over the world (Appendix 1). Even a recent Goldman Sachs report says that in 2011 Russia could even eliminate the deficit and economic growth is a healthy 4% more than at least the next few...