IKEA in russia
IKEA IN RUSSIA
INTRODUCTION
Today, we present our analysis of the adaptation of a multinational in an emerging country. We chose to study the Ikea’s case because the company is the leader in the field of interior design and furniture. In addition, we chose to focus on the implementation of Ikea in Russia because the cultural differences between Russia and Sweden are important. This cultural distance shows the importance of brand policy and how it could have an impact on sales as well as its reputation due to poor market research.
Finally, it is interesting to see how a multinational company which is present in many countries could adapt to local culture despite its differences with it. This point is important to do business in Russia.
In this presentation, we will explain how Ikea is located on the Russian market and how society has become accustomed to Russian culture despite their differences of opinion.
Our choice was quickly clear as we have previously done a study in class about the difficulties of Ikea to adapt to the Russian corruption system, which appealed our attention. That 's why we decide to explore this topic.
I. Market analysis and Company introduction
SWOT
Strength: the brand acquire a good knowledge of their customers they constantly use innovations to drive costs down they have a supply chain integration the company get a famous brand reputation and a strong notoriety they offers diversified products to their customers which led a lot of choice
Weaknesses: their portfolio is composed of many standards products with a low durability their stores aren’t located in the city centre
Ikea’s stores are known to be such as labyrinth there is a long expectancy at the checkouts
Opportunities:
Growing of online sales (e-commerce)
Russia is a huge potential market with almost 150 million inhabitants
There is a growth of the average consumer income
Expansion to growing grocery market
The turnover of retail trade
INTRODUCTION
Today, we present our analysis of the adaptation of a multinational in an emerging country. We chose to study the Ikea’s case because the company is the leader in the field of interior design and furniture. In addition, we chose to focus on the implementation of Ikea in Russia because the cultural differences between Russia and Sweden are important. This cultural distance shows the importance of brand policy and how it could have an impact on sales as well as its reputation due to poor market research.
Finally, it is interesting to see how a multinational company which is present in many countries could adapt to local culture despite its differences with it. This point is important to do business in Russia.
In this presentation, we will explain how Ikea is located on the Russian market and how society has become accustomed to Russian culture despite their differences of opinion.
Our choice was quickly clear as we have previously done a study in class about the difficulties of Ikea to adapt to the Russian corruption system, which appealed our attention. That 's why we decide to explore this topic.
I. Market analysis and Company introduction
SWOT
Strength: the brand acquire a good knowledge of their customers they constantly use innovations to drive costs down they have a supply chain integration the company get a famous brand reputation and a strong notoriety they offers diversified products to their customers which led a lot of choice
Weaknesses: their portfolio is composed of many standards products with a low durability their stores aren’t located in the city centre
Ikea’s stores are known to be such as labyrinth there is a long expectancy at the checkouts
Opportunities:
Growing of online sales (e-commerce)
Russia is a huge potential market with almost 150 million inhabitants
There is a growth of the average consumer income
Expansion to growing grocery market
The turnover of retail trade