IKEA in Russia

1.What are the main motives for Ikea to enter the Russian market? acquaintance of the motives for Ikea to enter the huge Russian market was that its founder Ingvar Kamprad sincerely yours believed that the country has massive raw material base and alert level of education can make the obvious fruit centre for a global furniture company. They also had a company that they were furniture from Russia for more than 20 years, but without a presence on their market. The motive and a really thought-provoking goal is to supply all the global market with Russian-produced furniture. It power be also that economic crisis and the devaluation forced authorities to clear for foreign investments and Ikea caught the right moment. My opinion is also that they learned a lot from previous failed set ups and they knew how to approach this sophisticated market. 2.Taking into retainer Ikea?s business model and the industry they operate in, what do you see as the main challenges facing Ikea in the Russian market? In other words, what will be the holding success factors for the company in Russia?We are commenting this in 2008 and the check out was from 2003. Like Mr Dahlgren says that IKEA is still losing money in Russia and does not take care to turn a profit until 2005.

To be profitable, they would have to pressurise locally produced furniture from 13% now to more than 30%. After Ikea set?s up the infrastructure, those objectives will be definitely reached (or are already now in 2008). Ikea is grasp its 60-plus suppliers equipment and granting credit for investment and working capital, because Russian companies? are having declamatory! problems with inability to borrow from the local banks. Some quotes in the phrase by Mr Dahlgren: ?You have to think long-term in Russia. The biggest stigma other... If you want to get a full essay, order it on our website: BestEssayCheap.com

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