IKEA BUSINESS CASE

 

Corruption is endemic in Russia and it is baked into the culture. Culture and corruption are central themes in this week’s case.

Detailed write-ups should include at least the following:

1) Current situation – this section should include a brief summary of Ikea’s strengths and an thorough analysis of the current situation (challenges and opportunities in Russia).

2) Alternatives – this section should consider different alternatives Ikea might have considered when expanding in Russia.

3) Chosen strategy – what strategy did they chose to deal with corruption and to still be successful in Russia and was it the right one? What should they do next?

4) Lessons learned – what are some lessons learned from this venture into Russia and how might they be applied to other scenarios.

Sample Solution

IKEA Business Case

IKEA which is privately owned, has been in Russia for 15 years and is now the leading furniture retailer with a 20% share of the market, according to Euro monitor data. It operates 14 stores and is looking to open a new one in Moscow, its fourth in the Russian capital. The expansion problems faced by the retailer in Russia highlight the extent of petty and systematic corruption among local officials. Last month, officers from the Moscow Region’s Economic Crimes Unit searched IKEA Russian headquarters in Khimki Business Park in connection with a recently opened criminal investigation into a long-running dispute over a plot of land. Its whole business model revolves around selling their product at the lowest price possible. IKEA business model revolves around their vision which is offering a very wide range of well-designed, functional home furnishing products at so low prices that as many people as possible will be able to afford them.

Social media and technology play a significant role in everybody’s lives. It has revolutionised the world we live in, in many ways. One being the fashion industry. This has been impacted by the rise of bloggers and social media influencers who have made social media a career and marketing strategy. One major platform is Instagram. This has helped brands and bloggers promote products and lifestyles that will appeal to a wide audience and entice customers which not only benefits the brand but also the “business” of the blogger. Social media has had a direct impact on digital labour and consumer culture as it has provided a platform to see what is desired by an audience and what there are gaps in the market for. There has also been a development in body image and how bodies that differentiate from the norm is not scrutinized anymore but is accepted and praised. For women, the stick thin barbie doll body type is not the trend anymore and curvy bodies are more realistic and common in contemporary western society. Social media has provided a feel-good service for society as people feel more accepted and confident for who they are. I will be looking into how much of an impact social media has really had on many different aspects of the fashion industry including body image, marketing, acceptance within society and the rise of bloggers and influencers. I decided to investigate a high-street brand and a high-street, online retailer to see if how they utilised social media differed. The high-end brand I chose was Burberry as they are heavily advertised by celebrities throughout their campaigns. I then chose to research Pretty Little Thing as my high-street brand as they use social media influencers and bloggers to promote their products a lot in their brand. I chose both brands because although their products and consumers may be very different, they still have similarities in the way they work.

The purpose of this study is to explore the impact that social media is having on the fashion industry. The reason for my interest in this topic is that I have grown up with the development of social media and have always been very interested in fashion, therefore I wanted to see how the two impacted each other. I will look into any evidence I find to see if there have been many direct effects on the fashion industry. In terms of the range of material that I managed to find, there is several articles and scholarly sources that have looked in to the changes that social media has had on the fashion industry. The data in these sources wa

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