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What are the various external factors which a company must take into account while devising a market entry strategy for a new country? Discuss these factors in the Russian context and in the actions taken by IKEA.

IKEA is one of the world's leading businesses. It is well known for its anti-corruption policies in its business procedures which they faced problem issues in Russia while entering and expanding its market. Despite the problems facing the company, its ethical standards have not been broken and solutions have been found to successfully expand their businesses. Instead of relying on independent businesses, it diversified its business by opening large shopping areas.

Factors to be considered while entering a new market are Political & Legal factors, Economic factors, Social and Cultural factors, Market Attractiveness and Capability of the company.

Political factors where the company should study the attitude of the government and people of that particular country and the government style that is whether it is a democratic or bureaucratic government and the legal system of the tax structures and tariff structures which are fundamental in carrying a business in that particular country. This factor had a great effect on the IKEA company while expanding and entering Russia market .The political authorities break the business operations as the company was not favorable towards bribes and corruption although the company tackled the problem and opened large business complexes within the country.

Economic factors which include the country's per capita income and the gross national product which shows the the customer who are affordable to pay the price of the product. A company should also consider the economic stability including balance of payments and currency stability. IKEA had investigated the consumers preferences and their affordability level through analysing the per capita income per individuals which helped the company in entering and expansion strategies in Russia with tailored prices to fit customers based on their income levels.

Market attractiveness which asses the market potential based on the revenue generated which determines the investment to be made .The company had attracted the interests of the customer initially on its entry day by targeting the middle class people trough provision of low prices on furniture by which it gained a competitive advantage and captured the highest market share.

Capability of the company where the company should be aware of its own strengths and weaknesses in order to have a competitive advantage in technology and product range for example experienced employees in the foreign market operation .The company was well known for its anti-corruption practices in its business procedures which with the continuous ethical standards it developed its trustworthy among its customers leading to its expansion and success.

Q2)What is the impact of strong and co-operative political machinery on the business prospects of an emerging market? In this context, discuss IKEA's Russian sojourn. What should IKEA's business strategy be in the future?

The essential part of having corporative and strong politics machinery is for business and economic market improvements across the country. The IKEA underwent immense struggles and successes in there Russia Journey. Political machinery can be explained as the political group that has a respected leader with the support from police and business that get respective allowances for their efforts, the power of the machine depends on the strength of the leader to earn votes from the people. The principal responsibility of a political machine is controlling the local government.

The IKEA went through many struggles before and after sits launch. The official in Russia from all levels managed to adjust with a good number of the barriers. One of the main problems to the IKEA was bribery which was in also every issue associated with the states. In the close analysis, bribery was termed as another reform of taxation, which was only to the benefit of political superiors. Bribery is a vital challenge to any market that wants to emerge. It is essential to take steps in any case to remove corruption for prosperity. At the same time, with the struggles of corruption, IKEA managed to open specific stores in time recorded. The IKEA is famous in Russia, in three well-established stores worldwide, two of them are in Russia. The successes of the IKEA fascinated other people, across the world, considering the achievements it had. The IKEA managed to explore new opportunities and emerged with new models in business, which are fundamental in strategies alliance that bases in the building of commercial complexes. The mutual objectives pursuit and business models assisted in maintaining high competitive edges.

In future, it is suggested that the IKEA invest adequate funds and time it the course of better political landscapes and entry plans. The plans and funds are meant to improve the effectiveness of the corporation between the government now and the organization. In less consideration of the research depth, markets that are emerging are a vital threat to an organization. The IKEA should also focus and try to spread worldwide and have transformation and the key driver in making sure there is a success. The IKEA should also be able to advance their relations in monetary relation, politically and socially in the country.

Q3) What are the strategies that a company should use to grow its business in an emerging market? How do you establish a strong market presence in an underserved market? Discuss IKEA's strategy of establishing large shopping complexes instead of standalone shopping centers.

An emerging market usually has a lot of dynamics that are not defined this; an organization needs to be strategic about entries and gather as much information that can be collected. Some of the strategies that can be used in emerging market are the creation of a risk management program that will assist the firm in surviving through any market shock or dynamics; in this case, the firm should be able to predict the expected risks. Another strategy is the adaptively, which will assist the firs in adapting and creating a competitive advantage in over the competitors.

A market that is termed as underserved is usually characterized by a few providers that are delivering solutions. In most cases, an underserved situation results in an oligopoly or a monopoly. In this case, there are several ways where a firm can establish a market presence in an underserved market, including providing quality services, having products that are differentiated by affordable pricing. Nevertheless, other factors can be included like the creation of an entertainment area and a massive advertisement for popularity. The organizational internal and external structures also play a significant part in making sure that the firm remains on strategic. Research is also essential in making sure that the firm produces products that are customized to the tastes and preferences of the targeted market.

After the IKEA discovered and tested several business models, it formed a strategy that will ensure the establishment of large shopping complexes is successful. The IKEA came up with a strategic coalition that provided the development of commercial complexes around the IKEA lands. A significant number of the promised stores had international connections, electronic sales, clothing, hardware and branded connections. The strategy of building the page shopping complexes was established in a mutual objective strategy, which also included joining the business ventures together with the IKEA stores and even venture business with them. The mutual objective resulted to brings together resources to creates and maintain a sustainable competitive edge. The Megamalls erected became an attraction centre attracting a lot of customers, who not only flocked in for the furniture but also for the experience. The malls were also meant to be a form of attraction across Russia.