Ikea Entrando A Rusia En Ingles

IKEA: Entering Russia
Questions
1) Can you see any alternative entry strategy that IKEA could have applied when entering the Russian market? What would have been the advantages and disadvantages of these alternative strategies?
For IKEA there was alternatives strategy for entry the Russian market, as any other foreign market, the options for the company where:
• Exporting
• Licensing
•Joint ventures
IKEA can use any of these alternatives but there were not in the same line has the company wanted to be in Russia, so they didn´t use it and stay with the direct investment.
If the company used this strategies the advantages and disadvantages would be:
• Exporting
Advantages:
Cheapest way to enter and the company do not have to know a lot about the new market, other advantage isthe minimizing the risk and investment. Exporting strategy allows to have a speedy way to enter the new market and also maximizes the scale using existing facilities.
Disadvantages:
There is no company image transfer to the local market, also there is a limit access to local information and the company is seen as an outsider. By taking the export strategy the IKEA will have a lot of transportcosts and have to be aware of the trade barriers and tariffs that are always a disadvantage for the company.
• Licensing
Advantages:
The advantages that comes with licensing in that the company minimizes the risk and investment and a speedy entry in the market, like in the previous alternative, but it has a difference because in here the company is able to circumvent the trade barriers. Thisalternative also has a very high return on investment.
Disadvantages:
There is a lack of control over use of assets for the company that its lending the license, also there have been cases when the licensee becomes a competitor for the original company. Another disadvantage is the knowledge spillovers and the fact that a license period is limited.
• Joint ventures
Advantages:
One of the mostwanted advantage with tis alternative is the Know How of the other company, and also to overcome ownership restrictions and cultural distance. There is also other advantages such as the combine resources of the two companies, the potential for learning and the difference in the investment (less investment)The company is seen as an insider.
Disadvantages:
The first and most is the difficulty formanage the joint venture, also the dilution of control that comes with the same manage problem. Other disadvantage in that this alternative have more risk than exporting and licensing. Finally there is also the possibility that the partner may become a competitor.
2) To what extent do you think that IKEA´s entry strategy for Russia is based on adaptation and on standardization? How are thoseapproaches balanced?

IKEA in the strategy to enter Russia used both, adaptation in one hand and standardization in the other. IKEA wanted to transfer the IKEA culture and values in its arrive to Russia, with the mind set of taking the "IKEA way" to the new market . To do this Ikea first try to understand the market and know about the new market but it was an unsuccessful quest, so they have tochange the way that they were looking at the market and it was then that they started to know the new market.
There were also situations that helped IKEA (like staying in the market when every other foreign company were leaving the country) , but Ikea manage to be in the balance between standardization and adaptation, thanks to research and also the similar costumers between Russians buyers and theMalmo buyers.
IKEA used the standard values of the company and manage to change the Russian way of think when they look al furniture, now they know that they can buy nice quality furniture for cheap prices, and IKEA also manage to offer something for the new costumer, like adapt to offer products for small living spaces, and that was the key to the success (adapting and selling with the same...