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Module 2.
Understanding our possible competitors is something that must be looked into with great detail. As mentioned before, we plan on introducing our products by having them distributed by well known and successful Russian stores. If our products are successful, then we will move forward and try to introduce our first actual Target store in Russia. This could be a problem because the stores that we would use to distribute our products at first would become our competitors if we try to open a Target store. .
The first and major potential competitor for Target is Ramstore. Ramstore provides Russian consumers with a "superstore" that provides all types of products and services similar to Wal-Mart. The prices are slightly below normal Russian levels. Ramstore has a distinct competitive advantage in the location of the stores. They are almost always located near metro stations for easy access. They also offer huge parking lots, food supermarkets, wide selections of consumer goods, and adjacent boutique malls so consumers can do all their shopping in one place. There are seven Ramstore outlets in Moscow alone, all smaller in size and selection. Ramstore would be an ideal store to use as a distributor of Target products because it is similar to Wal-Mart. Wal-Mart is very similar to Target on the reasoning that it offers quality products at low prices. Also, Ramstore's locations and popularity are very key because it is important that Target products are distributed by stores that are popular and have a strong background in Russia. Ramstore would be an ideal distributor, however they would also be a tough competitor for us if and when we plan to introduce the actual Target stores into Russia.
TSUM is the second potential competitor for Target in Russia. It is one of the largest and most successful department stores in Russia. TSUM, which translates as Central Department Store, is a cheaper alternative to most Moscow shops.
