Case Study : Emerging Markets – Ozon, The Amazon of Russia

Ozon.ru is Russia’s online retailer established 16 years ago. Even though Ozon.ru introduces itself as “The Amazon of Russia” there are still huge differences between the two retail stores. The first difference is seen on the modes of transaction used by the two retail stores. Majority of transactions at Ozon.ru are in cash while transactions at Amazon.com occur online. The second difference is on the delivery networks. Ozon.ru is setting up its own delivery network. It currently covers most of the cities directly, and only a few through the Russian Post. This strategy prevents it from reaching many customers. On the contrary, Amazon.com uses the United Parcel Service (UPS) and the American post that enable it to reach as many customers as possible (Rozhnov, 2012).

The Russian market plays a big role in these differences. Russian customers are not comfortable with online transactions and tend to avoid credit cards. They naturally prefer to pay by cash because credit card penetration is much slower in Russia than in the West. Additionally, Ozon.ru customers fear placing orders online. They prefer touching the good and ensuring that everything is in order before they can pay for goods that are later delivered to them by courier (Stone, 2011).

Businesses must learn that entrepreneurial strategy changes based on different markets. Businesses normally lay down strategies that can help them move forward to a positive future. These strategies must be changed according to the nature of competition in the market.  Every business must modify its business plan based on changes in the market condition. Therefore, Ozon.ru needs to look at Amazon’s strategies and adapt them for a better future (Robert, Peters, and Shepherd, 2005).

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