Ikea Enntering the Russian Market Essay

The beaver way to anticipate for viable alternative entry strategies is to watch the mistakes IKEA made and the problems they had by debut the Russian mart place. But first there ar several confederacy related attributes to mention. IKEA is a union which is highly related to their Swedish customs duty and origin as this is a basically part of their marketing outline and corporal identity. Many people are connecting IKEAs Swedish painting with the way IKEA is communicating their crossroad range Cheap, easy and yet rock-steady and stylish. Because of these conditions given, IKEA is forced to make trusted that they are able to transfer these elements of their corporate idea into the Russian market. Of course there always are more or less differences from country to country in the way IKEA communicates to their customers, but adoptions should be contain to executive marketing decisions and not interfere with IKEAs basic work idea.These previous points are strongly limitin g any kind of confirmatory entry strategy. IKEA inescapably to keep the conceptional differences between their home markets and the Russian points of sale as small as possible. That means as but the gap is between the original shops and the ones in Russia, the bigger is the chance of a flawed identity. Therefore entry strategies like franchising, licensing and indirect merchandiseing all over all could not be an opportunity to enter the Russian market. The flat coat is simple It allow for get quite hard to find a Russian businessman who is familiar enough with Swedish culture. The franchise guidelines IKEA would be forced to give out would probably fill up thousands of pages and take down then, Russian IKEA franchise businesses would communicate anything else but Swedish family piece to their customers. IKEA dust facing the more viable entry strategies of a direct export in terms of opening their own stores in Russia as they did, or to start an coalition as a strategicall y collaboratorship or joint venture.The major problem they IKEA faced by choosing the direct export as an entry strategy was the missing knowledge and experience about(predicate) the Russian market, its further development, the people and the Russian culture as tumesce as Russian living conditions. The arrangement and adaption of the communication strategy and the product range took place steadily and needed time. Therefore, even if the Russian market potential was still growing and expanding IKEA lost market share and gross sales power because of wasted resources and by transacting a not optimally ad retributiveed marketing strategy. A solution to face these problems from the start of the marketentry would have been to search for a Russian partner conjunction that is capable of IKEAs missing knowledge. The different opportunities in here are based in the shaping and the form of alliance.IKEA can be sure that they have got a very well working business model. They weart want t o share their success even if a deeper alliance would probably allow them to share loss as well in case of failure. IKEA wants to keep control of the company as it is still orphic hold and they want to keep it that way in Russia. In profit a joint venture alliance usually is kind of a long term relationship. IKEA indeed just needs a partner to get started in the market Russia. Once they catch on they cleverness want to speedily quit former alliances. In my opinion the best solution would have been a strategic alliance with a by chance quite small partner as the object of trade for IKEA is just knowledge.A small, traditional company that enables IKEA the transfer and arrangement of their culture and company politics into the Russian market by providing all the information IKEA needs to prevent the above-mentioned mistakes. The partner company is not needed to perform in any physical goods business as their relationship to IKEA will only be based on information access. After the happy market entry, the strategic, information based alliance could be quit quickly and easy or getting changed into a usual business relationship, depending on the need of future information supply of IKEA.