IKEA in russia

1322 WordsFeb 20, 20146 Pages
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…show more content…
When Ikea set up his first store in Moscow in 2000, expectations about the purchase behavior of customers do not occur: instead to focus on the accessories and small items, the request immediately focused on product categories rather unexpected, such as kitchens. Another objective was to implement IKEA production center in a low cost country. The Group therefore wishes to use the capacity of the country to supply its global network of stores. Under these conditions, a partnership is needed with Russia, which holds a quarter of global reserves of wood, but also has significant potential with regard to plastics and aluminum; interest also goes to the reactivation capacity dormant for textile and ceramic industries. To allow Russian suppliers to purchase industrial equipment needed, the group spent $400 million. In addition, he opened his own production unit in St. Petersburg. In comparing the website of the company in Russia and in France, we saw that there were a lot of similarities between the two countries. In fact, the two websites have the same structure, the same ads and offers the same products. Furthermore, the website offers a delivery service. However, we mentioned some differences between the two countries. First, the language isn’t the same. The Russian website is written in Cyrillic. In France, it’s possible to buy a product online whereas in Russia we only could consult it. At least,
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