IKEA's difficulties in entering the Russian market were typical of those encountered by businesses looking to expand internationally for various reasons. According to the World Economic Forum research, "different countries develop differently, confront unique infrastructure, socioeconomic, and regulatory issues, face unique environmental and geographic limits, and provide unique commercial prospects" (Derensky, 2017). Strategic management in emerging economies requires a distinct strategy due to the radically different factors affecting these markets. Due to various factors, what works in one's native nation may not operate in another region.

First analysis

When developing a market entry strategy, it is critical to consider external influences.

External considerations to consider when entering a new market include opportunities and incentives. IKEA has frequently demonstrated its capacity to identify and overcome strategic challenges (Chu et al., 2013). Russian markets were no exception. Local government corruption, authorities' reluctance to advance projects and other unexpected barriers were encountered when entering the Russian market (Deresky, 2017). Despite facing problems, IKEA was a master at overcoming them. IKEA waited until it had to retaliate. Those complicit in a corrupt transaction were fired when their superiors allowed it (Deresky, 2017). Because of the Russian market's complexity, IKEA's success here is almost sure to translate to other international endeavors.

Second analysis

Cultural distance, and more specifically, contrasts in how IKEA worked and the local Russian culture, all contributed to the company's success. A firm's members may develop an intriguing dynamic when their values, norms, languages, and religions differ. According to former IKEA employee Lennart Dahlgren, Russia's government was notorious for accepting bribes to accomplish anything (Faheem, 2017). Conversely, IKEA has repeatedly been named one of the "World's Most Ethical Companies" (Deresky, 2017). Due to these cultural differences, the Russian government and IKEA authorities had a significant cultural split.

First recommendation

The amount of competition in the current market should also be considered. Despite the founder's longing to expand into Russia, economic and political obstacles prevented it (Deresky, 2017). Opening in Khimki in 2000, IKEA attracted over 40,000 customers (Deresky, 2017). The anticipation for IKEA was intense. Local furniture stores struggled to compete with IKEA's low prices and limited product selection. Without real competition in Russia, IKEA's business strategy of "cheap labor with quick retail pricing" was a sure thing (Faheem, 2017, p. PCS-2).

The lack of local competition allowed for rapid success in a new market. There were many benefits but also drawbacks. IKEA overcame these obstacles thanks to the Russian government's corruption. Weird obstacles IKEA had in opening new stores in Russia included moving locations, getting approvals, and having problems days before opening (Deresky, 2017). IKEA overcame these and other obstacles. IKEA should be able to address local concerns while adhering to ethical business principles.

Second recommendation

Consider economic, social, and cultural, political and legal, market attractiveness, and corporate fit when entering a developing market (''5 Factors You Must Consider," 2014). After addressing these issues, a good strategy for entering an underserved market is required. IKEA created a plan to meet a specific Russian demand. Service was prioritized when opening stores in this new market. IKEA also ran a pilot project in Russia to test its new business strategy (Deresky, 2017). Thanks to IKEA's massive shopping center-style complexes, other businesses have been inspired to join in the groundbreaking structure design of enormous shopping malls.

The concept's simplicity permitted increased earnings for all.

Conclusion

While IKEA began in 1943 as a modest firm selling small items, it quickly expanded in terms of product line and geographic reach. IKEA applied some of those business strategies and began expanding after understanding the need to develop locally sustainable business. IKEA successfully handled the hurdles of growing into new regions by employing a sound strategy and a commitment to be flexible and adaptable. IKEA worked with government leaders from various departments to overcome obstacles and maintained its business strategy of simple design at a reasonable rate while adhering to ethical business practices (Deresky, 2017). IKEA's success in Russia may be attributed to recognizing local issues and overcoming them through best practices that will undoubtedly benefit the company.