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Evaluate Quality of This Service with SweetStudy Review

Updated 11.05.2023

Based on 2 reviews

To decide what score each company deserves, we compare our team’s grades, academics’ ratings, and individual reviews. Opinions of LetsGradeIt.com team is worth 30% of the total grade. Academics’ ratings comprise 35%, and individual grades account for 35%. In cases when there are no individual reviews posted about a firm, academics have a say by 60%, while our team gets 40%.

All ratings, opinions, and reviews you see on this site do not necessarily reflect the official position of any other company, educational establishment, or employer. These reviews are always subject to revision and change. Please do not hold us to them — visit actual websites to make any decision.

  • Affordable rates for assistance
  • Clients could get help 24/7
  • Plenty of disciplines covered
  • Free summaries of various books
  • Clear privacy policy
  • Unclear revision policies
  • Negative old reviews of SweetStudy
  • Quality heavily depends on a tutor
  • Most older answers cannot be purchased
  • Lowest Price: $9
  • Minimum Deadline: 6 hours
  • Payment Methods: Visa, PayPal, Payoneer, Master Card
  • Guarantees: 24/7 support, Reliable helpers, Affordable prices
  • Discounts: No information
  • Types of Services: Answers to questions in a written form

There are multiple requests for a SweetStudy review because this resource is essential for students. It has a significant online presence, and it claims to provide high-level academic help. But few companies are as ideal as they market themselves to be. What’s the deal with SweetStudy? The first aspect you should know is that it used to exist under a different name. You might have already encountered it as Homework Market. This domain kept getting serious criticism from clients and employees alike, so it underwent a rebranding and became SweetStudy. Changing a name has a symbolic meaning: it can signify a start of a new life, but did it have a positive impact on this site’s performance? Stay tuned, and you’ll find out!

No one likes to pay. Students hope to find the best free essay websites that could supply them with top quality, and you know what? It’s possible. Some companies offer samples for free to help students with their tasks and entice them into placing an order later. SweetStudy isn’t from this category. It has multiple summaries of books and other resources, but there are no examples of its writers’ work, at least not for free.

This site falls into the group of homework help websites for college students with low prices. What became instantly clear in the process of SweetStudy review is how the company tries to limit its own services. It repeats several times that it doesn’t provide paper writing help, and if students want an essay written, they should go elsewhere. Technically, it is true: SweetStudy focuses on answering questions and explaining academic material, and this is the only option you’ll have as you are placing your order. But the collection of old answers reveals that it does create papers sometimes. This is confusing, and our team wasn’t certain why the company pretends like it doesn’t have this service.

For the most part, as our experience and SweetStudy reviews showed, students ask for help with specific academic questions. It could be a Math task, a Philosophy question, an assignment where you have to prove a theorem, etc. You ask your question, tutors offer their help, and you select which of them to hire. Another part of service is passive. This company posts numerous old answers from its tutors: if you find a question similar to yours, you can purchase a ready-made answer instead of paying a personal writer and waiting for them to complete your task. This is a great and convenient system, but only theoretically. When we tried to buy some answers, we discovered that the majority of them were inaccessible. We have no idea why SweetStudy didn’t remove them from its database. It looks like it tries boosting its usefulness artificially, pretending like it has multiple offers when in fact, none of them are available.

We noticed an interesting paradox: all students are intensely curious about prices, but most SweetStudy.com reviews don’t say a word about it. Don’t worry, we’re about to change this. Services are affordable at this company — they start at $9, and they can go up and up depending on what a specific writer charges for their work. It’s clear that the best dissertation service is going to be more expensive than help in a simpler Q&A format. We paid $10, $18, and $25 for three assignments with different complexity. These were good prices, though we wish discounts were present. They always inspire clients more. In turn, prices for answers available straight from the database are higher. But in the end, you’re the one making a decision. You could pick a writer with a lower bid or ignore expensive answers.

It’s difficult to determine what deadlines SweetStudy.com works with as its order form is too vague. From what we figured out, students should give their helpers at least 6 hours for complex questions. If your task is simple, assistance could be much quicker. There are no hard lines: one tutor might be ready to help in 20 minutes, while someone else could need hours to complete the same assignment.

We have no idea if SweetStudy offers any revisions or refunds. Its policy doesn’t mention anything about this, and when we tried to ask questions, we got vague answers. This is frustrating because we cannot approve or condemn this agency’s compensation policies. We simply don’t know enough about them because it didn’t specify them.

Confidentiality for Clients: Are They Safe?

Is SweetStudy good at protecting its clients’ privacy? Yes. It has a simple but detailed policy where it explains what data it collects and how its customers should behave when using its services. The only relevant piece of info you’ll have to share is your email address. Payment details remain confidential. Avoid sharing email, name, or phone number with tutors directly.

As several reviews of SweetStudy mentioned, tutors in this academic agency often come across as unprofessional. They make mistakes in communication, sound overly enthusiastic, and often try to talk clients into placing new orders. Two of the three tutors we tried here showed this exact behavior. They were clearly not native speakers, and they couldn’t have significant writing experience with the subjects we requested. The third tutor sounded more professional.

Speaking with Managers about Orders

We wanted to do a detailed SweetStudy review but were not able to reach customer support. Is SweetStudy effective in terms of communication? Not at all. In fact, SweetStudy is a nonexistent entity. If you attempt to contact their managers through social networks, you’ll face an uphill battle as they typically redirect you to their official website. While there are contact details such as phone numbers and email addresses provided below the FAQ section, the responses received there are mostly limited to specific DMCA requests, with rare replies to general customer inquiries. Your best chance of communication lies with the writers themselves. On one occasion, I managed to connect with someone resembling an operator, but our conversation was brief, as I was advised to discuss all the specifics directly with my assigned expert.

Quality plays a major role in all evaluations. We pay the closest attention to it in essay service reviews we work on, and SweetStudy didn’t become an exception. There are few online reviews about it after rebranding, but when we combined them, we saw that they are mostly negative. Clients complain about failed quality, rude managers, and the impossibility of settling a dispute appropriately.

Did we find SweetStudy legit after placing our orders? Unfortunately, my personal experience with it was disappointing. Two tasks looked terrible. They had rows of mistakes and unnatural constructions; one was downright incorrect, while another one had an overly vague answer. The third task looked more or less good, but it wasn’t perfect either. Its content was superb, but we caught several considerable mistakes. Overall, we weren’t happy.

There are old and new reviews about SweetStudy. We looked at both, and they didn’t impress us. The majority are negative and voice numerous complaints.

There are very few reviews on SiteJabber about SweetStudy, which is why we focused on older comments that the company got before it changed its name. The majority are strongly negative.

This comment is more or less positive, but it also complains about managers. Other SweetStudy reviews are negative.

No individual reviews.

On the company’s own site, only glowing reviews are present. They sound fake — no client can be happy all the time, and the downright giddy language intensified our disbelief further.

After our review of SweetStudy we decided that we can assign it 3 stars out of 5. This academic platform has great potential: it helps with multiple questions and subjects, has a database with more answers, and charges good rates. In reality, it still needs to improve its work. Its quality is insufficient, and most of the posted answers are unavailable. We cannot recommend it. Go through our other reviews and find a better-rated agency. Leave your feedback if you want us to explore more services!

Not really. This platform has some awesome tutors who could answer any questions and help clients with their homework, but a big part of them are unprofessional. They barely know English, and their work has endless mistakes.

Yes, it seems safe. It warns its clients against sharing their personal information with tutors; it collects only crucial details like email and offers free use of its anonymous chat. If you follow its rules, you do not risk compromising your safety.

No, this company is real, and it’s been working for many years. It was previously known as a Homework Market. Don’t expect always to enjoy a high level of quality here, but unless you give out personal info to random people, you won’t be scammed.

All in all, not bad. But SweetStudy isn’t suitable for those who need urgent homework help. I could barely meet my deadline!

I have mixed impressions of my experience with SweetStudy. The website offers a wide range of study materials and resources that can be useful for academic purposes. The user interface is clean and easy to navigate, making it convenient to access the materials. However, I found the quality of some of the study guides to be inconsistent. While some were comprehensive and well-written, others lacked depth and seemed rushed. The customer support was generally responsive, but there were instances where their assistance could have been more prompt and helpful. Overall, SweetStudy provides a decent collection of study materials, but the varying quality may require careful evaluation before relying on them.

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sweetstudy reviews

Short overview

My SweetStudy review is going to differ from other evaluations I did on essay writing websites because it’s a learning resource first and foremost. You could find brief info on books, short stories, anthologies, and other materials you might encounter during your college studies here. Online help is an attractive option as well. It was difficult to understand when this agency was founded or how it happened, but everything went faster when I discovered that it used to call itself Homework Market. The service appeared in 2012, yet at some point, it faced harsh criticism from customers. The number of negative reviews turned overwhelming, and when spammers began their attacks, management decided to undergo a rebranding. SweetStudy has a big library, numerous experts and seemingly low prices, but its dubious past and some other aspects made me skeptical about quality it provides. As a result, I shifted my priorities and delved into research sooner than I expected.

  • You could get help in minutes
  • Prices are affordable
  • Extensive database with book summaries
  • Inconvenient website
  • Questionable reputation
  • Unstable quality
  • Lazily formulated policies

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Design, Layout, and Website Usability

Website serves as a business card of every company, including those that provide personal statement services along with college writing. Like clients of other services, students are anxious to find the best help, and reading SweetStudy reviews might not be enough here. Upon entering this platform and studying it, my opinion shifted closer to negative. Homepage has a generic image of a student working on something, but the more you read, the more inconvenient design becomes.  Check both screen shots: the first one depicts the website you’ll see once you access it. The second one shows how this picture is going to change once you start scrolling down. Text transforms and layout shatters, forcing you to do a series of clicks to see an entire page.

SweetStudy interface

Another thing I disliked about SweetStudy.com was an absence of clear sections. On a homepage, I saw only “home,” “help,” & “literature.” The detailed info on policies, subjects, and list of services is missing. Another odd thing is that the company states clients will only have to pay after choosing a writer: it makes a big deal out of this like it’s some generous gift. In reality, most agencies follow the exact same pattern. You placed an order, a writer accepted it, and then they got the money.

SweetStudy website

Services for Students: What Are Your Options?

SweetStudy offers a collection of answers to college and university questions. This feature differentiates it from most writing companies. There are no free examples of essays or paper writing services here: Q & A format is the main kind of help students should count on. The writers won’t assist you in other ways, and if you need PowerPoint presentation, paper, or editing, you won’t get it. Strangely, its database offers essays, so I had no idea what the problem was. SweetStudy serves a big variety of subjects, from English to Biology, Math, Chemistry, Business, Law, Computer Science, etc. I liked this fact.

SweetStudy services

What I liked less was the lack of clarity on which services are really available. Reviews of SweetStudy never mention this and the website is not helpful. Even when placing an order, you’ll only see such options as “homework” and “essay,” and as you see from a screenshot, if you pick the latter, your request will be denied. This is confusing. Another big service is a collection of free as well as paid materials. Students could see 100+ books that professors frequently test them on. By clicking on the title, they’ll see stuff about the writer, plot summary, and publication date. It is a useful collection, but you could find the exact same thing on Wikipedia. Paid answers are replies and essays that writers worked on for other customers. If the topic is similar to yours, you could buy such an answer, but there is no guarantee of its quality.

SweetStudy book summary

What SweetStudy Does and Doesn’t Promise

To create detailed SweetStudy review, I hoped to cover this company’s guarantees in depth, but I was disappointed. It doesn’t seem to care about privacy, confidentiality or quality reassurance because the info it provides is scarce. The only answers can be found in FAQ, which isn’t enough by a long shot. This is what I learned: SweetStudy strictly discourages its clients from using papers or answers they purchase as their own. It flippantly warns them against sharing their data and states that it can use the material you bought for other people’s need. It promises high quality yet it is ambiguous about revisions or refunds. I felt extremely dissatisfied and unsafe as a customer.

Do Operators Exist Here?

Is SweetStudy good at communication? Nope. Because it doesn’t really exist. You could try speaking with managers via social networks, but good luck with that — in most cases, they will redirect you back to the company’s website automatically. There are phone number and email below the FAQ section, but people there reply to specific DMCA requests and rarely answer general customer messages. The best bet is communicating with writers. I got to speak to someone resembling an operator only once, and our conversation was short: I was told to discuss all details with my expert

SweetStudy privacy

Quality of the Essay I Paid For

Since Sweet Study reviews are mixed if you count the ones from Homework Market, I was curious about the quality I’d get. In the end, I was torn between utter dissatisfaction and skeptical acceptance. I decided to ask for a question on Business. The writer had to deliver it in 14 days. I paid $14, which is good enough for the volume I requested. After 2 weeks, homework was in my inbox, but even though the content was adequate, language issues horrified me.

Grammar and punctuation were a nightmare. In case of this SweetStudy.com review, I guarantee that my writer wasn’t a native English speaker — sometimes I felt like they made some mistakes on purpose because surely no one could be this illiterate. Style was also problematic as hell: overly short sentences made the text sound like a child wrote it. But ideas were surprisingly correct and even supported by credible sources, so I couldn’t dismiss the work entirely.

SweetStudy quality

How Do You Place an Order?

No matter what college essay editing service reviews say about quality, almost every service succeeds in one thing: they make placing an order a simple task. This wasn’t what I encountered during my review of SweetStudy. The process is confusing.

  • Log in . Before accessing order form, you need to provide your full name, share email address, and confirm it by following a link.
  • Provide first details . Type question title, the question itself, & upload files you feel are relevant.
  • Expand details . Select a type of help you need. Like my SweetStudy reviews show, it’s either homework or paper. If you choose the latter, you won’t be able to place the order at all. Point out your deadline, field of study, keywords, and settle on your budget. You could tell the company what university and course you’re undertaking for finding a better writer, but I recommend against it. This practice is unsafe.  You also need to confirm that you’re doing your own work on this assignment, another element I found distasteful. The company reminds you that despite paying, the product you get won’t belong to you alone.
  • Review offers . No reviews of SweetStudy explain this process, but it is not difficult: see writers’ profiles, communicate with them and accept one of the offers.
  • Pay for answer . Make a payment for the sum you and your writer agreed on.

SweetStudy ordering process

How Much Does SweetStudy Help Cost?

The minimal price for an answer is $9. It seems great, but there is an issue: writers dictate their own terms. You might not find anyone willing to answer your question about this price, and if you do, price might not correspond to volume. From greater news, you’re calling the shots as well! Clients can select their budget and try finding an expert willing to work with it. Prices for ready-made answers differ, ranging from outrageously expensive to milder options.

SweetStudy prices

True Level of Writers

What do SweetStudy reviews say about writers? People’s opinions differ while mine is mixed. Like I said before, my expert had terrible language skills. They understood my subject and gave a good answer content-wise, but everything else was abysmal. I can only conclude that like in the majority of agencies, SweetStudy provides a lottery. Good writers compete with untrained ones, and luck determines which of them you’re going to get. That you can communicate with them before hiring them is a plus. But many essay writing websites have this feature nowadays.

Revision Specifics: Effective or Useless?

None of SweetStudy.com reviews I saw discussed revisions, though it is a vital element. Since I had complaints about my homework, I asked my writer to correct it. They agreed, and three days later, a new version arrived. It looked slightly better, but it still had over 100 language errors. The company could benefit from proofreaders and editors.

Extra Offers for Clients

The company has answers to questions and summary database. You could also have a look at this blog articles. These are good aspects, but I found no information about loyalty program; answers are costly and summaries are useless in a bigger context. Everything they mention can be seen online within a minute. If you’re looking for the best plagiarism checker and proofreader here, you won’t find them.

The Truth Behind SweetStudy Reviews

Reviews about Homework Market are largely negative, but I wanted to focus on SweetStudy after rebranding. This is where I ran into a problem: very few comments exist for this domain. Here are some.

SweetStudy sitejabber

All reviews are positive, but this platform has just 6 of them. I wasn’t certain what to think. Compare two comments above: the first one sounds ridiculous in its saccharine fakeness. The second is more authentic.

SweetStudy trustpilot

There is only 1 review here and it is negative. But I don’t trust it because reviewer uses it to promote another company.

SweetStudy site reviews

The company has reviews on its site, but most of them look artificial. Check these examples out. They have similar style, vocabulary, and enthusiasm. No negativity in sight.

Social Media

SweetStudy has Facebook and Twitter accounts, but they are old and abandoned. Twitter hasn’t been updated since 2015 and both still exist under its old name. No relevant comments there.

Is SweetStudy legit?

Yes, this is a legit study resource for students who want to access academic materials and find answers to their homework questions.

Is SweetStudy safe?

No, it’s really not. The company largely dumps responsibility on you: it refrains from disclosing how it can or can’t use your data.

Is SweetStudy reliable?

It can be helpful if you need quick info on some popular books. Answers from its experts vary and depend on their level of professionalism, which differs from one writer to another.

Is SweetStudy scam?

No, this agency operates for real and it could help you answer different college questions. But quality and timeliness of these answers can be below expectations.

Additional Features

Payment methods.

I didn't like the way they wrote my essay. There are a lot of mistakes, and it was difficult for me to understand what was written there. This service's website is cumbersome and complex, making it difficult to place an order or contact customer support. The site was missing the information I needed and was poorly organized, making it difficult for me to find the information I needed. In general, think carefully before placing an order on this service.

I had a unique experience with the essay service I used. The writer provided an essay that was well-written and met my requirements, but it was not exactly what I had in mind. However, the customer service team was incredibly helpful and worked with me to ensure that my concerns were addressed. While the essay was not perfect, the level of customer service I received was exceptional and made up for any shortcomings in the essay itself. Overall, I would say this service is a decent option for those in need of an essay, but their outstanding customer service truly sets them apart from other services I have used in the past.

All the time there are problems with this or with that... will I find at least one service in which there will be no problems with delivery and quality?

Regina is the rude customer agent try to make me pay unnecessary payment for their fault in the system.

My History essay turned out not very good. I was very sad and cried because I relied on your help!

Since I work and study, I didn't have enough time to write an essay. I turned to this place for help, but I got even more problems that took a lot of time and nerves

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Sweet Study: Get Paid for Tutoring Students Online (Worldwide)

What is sweetstudy, signing up as a tutor on sweetstudy, reasons why sweetstudy may reject your application, how much can i earn with sweetstudy, more reading for you….

SweetStudy is a platform that connects tutors and students . Students present their work to tutors who can proficiently offer guidance and answer them. The website has been in existence for many years. It was formerly known as homework market before changing to SweetStudy. Definitely a cuter name.

The site is highly ranked with reliable services in academic related tasks. SweetStudy allows you to connect with students all over the world helping them through tutoring.  

What will you be teaching at SweetStudy?

As a tutor, you can sign up to teach one of the various subjects and get paid for it.

The site offers helps in innumerable subjects that include the following: 

  • Mathematics
  • Computer science
  • Business and finance
  • Health and medical studies
  • Statistics 
  • Research Papers
  • Dissertations 
  • General writing

After signing up, you are offered a chance to choose the subjects that you can comfortably tackle. Thus, as a tutor, you will be able to research a question provided by the student, then answer it proficiently and get paid . 

You can only select something you’re proficient to handle. Customer satisfaction is paramount to the site owners. As such, you should be able to keenly understand the question and provide an answer. 

Academic dishonesty is unacceptable as per the rules and regulations. They also forbid tutors from exchanging their contact information with students. If found, a tutor is fined or their account suspended for good. 

The website accepts tutors worldwide . Their application is usually online due to the magnitude of students visiting the site. 

The site also sells reference answers, and this is why they advocate for work to be free from plagiarism. Reference answers can be purchased even by tutors while helping on other tasks. 

After working on a task, the student rates you according to their satisfaction . Ratings help tutors to rise above the ranks and get more students to request for their help. Thus, ensure that your account is always on a 5 stars rating. 

sweetstudy signup form

The signup process for SweetStudy is easy to follow with only three steps . Depending on your availability, you can choose tasks that you can comfortably handle in their deadlines. Here are the steps to follow when applying as a teacher on SweetStudy:

  • Visit SweetStudy application landing page for tutor through this link to become a teacher . You can choose to use a social media account or signup using your email. 
  • Then, fill the form, enter a preferred username and a password. Enter your email and verify and complete the signup process . Ensure that you successfully upload your ID and KYC . Also, check that the image size is similar to one described in red. 
  • Their team will review the application within a week except for weekends and holidays, accepting or declining it.

The SweetStudy team is strict about deadlines and quality . As such, you have to complete the tasks they assign to you appropriately and timely to be a verified tutor. Some of the reasons they decline application include: 

  • Bad grammar and punctuation
  • Fake documents provided- education and ID
  • Multiple accounts
  • Spam /links to other websites
  • Omitted application instructions
  • Failed T/F policy questions
  • Vague information 

At SweetStudy, you can earn from $5 to $20 for every assignment . It pays its tutors through Payoneer , Western Union , PayPal and TransferWise . 

Tutors are paid 75% of payments made by each student for their assignment . Hard work and consistency are the only way to make more money from SweetStudy while at home. 

Reviews and payment proofs

SweetStudy has received positive reviews from students and other tutors. Students who have used the platform claim tutors offer adequate resources and answers. This shows that the SweetStudy team only accepts tutors offering top-notch services. The SweetStudy team are strict on confidentiality and disallow tutors from taking payment screenshots. 

some reviews of sweetstudy on trustpilot

Thus, there aren’t any payment proofs available on the Internet. But as you can see from the reviews above, it is a 100% legit platform. You will also find some people telling you that it is a scam, and will never pay you. But upon deeper research, it turns out that these are the people that copied answers and ended up getting banned by them.

As long as you follow all the guidelines and do your job ethically, SweetStudy will definitely pay you. If you are interested in finding out more sites that pay you for academic help, check out this megalist of Homework Help Sites (Remote, Worldwide & Legit) .

  • SuperPay: This Platform has the most number of Surveys/Offers out of them all (Payment Proofs Included)
  • Viewfruit: A Global Survey Panel with multiple ways to earn (Payment Proof Included)
  • This Site Pays upto 46$/hour for Grammar and Spell-checking of Documents (Accepts Worldwide)

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Tutor Stellar Geek is the best

Simply the best assignment help experience. I was assisted by a tutor named Stellar Geek. She was quick to respond, handled all my concerns diligently.

Date of experience : March 01, 2023

Great tutors , rude admin

Great tutors there. But very rude and inhumane admin (a lady)

Date of experience : December 14, 2022

It is a scam!! Stay away!! Course Hero is the best!

It is a scam! Stay away. They pretend not to see your payments and have you pay 3 times. They never respond until a dispute is submitted. The scammer only was focusing on the user to resolve the dispute. assignment was not delivered after a week and a half.

Date of experience : November 02, 2022

No support, I recommend Essaysmarket.net

This website is good enough and I had a writer working for my class, however, when a dispute a came up, it took two weeks to get it resolved. I promise their support wont help in case of any issue. I found another company that has instant support and 24/7 help. I like it better. Essaysmarket net, I will recommend it for anyone who wants service without stress.

Date of experience : May 19, 2022

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HomeworkMarket.com (SweetStudy.com now) Review

SweetStudy review

Rating 1/10

Table Of Contents

Paper Quality

SweetStudy Service

Prices and Fees

Price vise, this is an average service, just like many other online services. They charge 19 USD per page and offer some first-order discounts (though, don’t expect to find any progressive discounts or promo codes). However, the price-performance balance is definitely broken. In my humble opinion, they charge too much for the writing quality, meaning that they are not worth the price. Even if you go with the available Top Writer option, this won’t change too much and your paper is not going to be any better.

HomeworkMarket (SweetStudy) Guarantees

Service Review and Online reputation

HomeworkMarket reviews

Customer Support

No records of a regular call center with live agents are available on their website. One cannot call this company and place an order, ask questions or express concerns. It is only possible to engage in a live chat dialogue with administrative personnel (only available on workdays during daylight hours) or send an email, which is said to be answered within two business days. To my mind, both options are not convenient and are way too slow.

Types of Services

HomeworkMarket Types of Services

Ordering Process

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Corruption in Russia: IKEA’s expansion to the East (A)

introduction

In 2000, IKEA, the world’s largest furniture retailer entered the Russian market. The Swedish

retailer wanted to be part of the gold rush fueled by the emerging middle class in Russia after

the fall of the Iron Curtain. The company was preparing to open its first flagship store on the

outskirts of Moscow, only the first of several planned projects. After substantial investments in

infrastructure and logistics, IKEA focused on marketing, but quickly faced a sudden

complication. Its major ad campaign in the Moscow Metro with the slogan “[e]very 10th

European was made in one of our beds” was labeled “bad taste”. IKEA had to stop the

campaign because it “couldn’t prove” the claim.1 Soon Lennart Dahlgren, the first general

manager of IKEA in Russia must have realized that the unsuccessful ad campaign was going to

be the least of his problems: A few weeks before the planned opening, the local utility company

decided not to provide their services for the store if IKEA did not pay a special service fee.2

What should IKEA and Lennart Dahlgren do? Was there any alternative to playing the game the

Russian way, and paying?

This case study was prepared by Urs Müller of ESMT European School of Management and

Technology. Sole responsibility for the content rests with the author(s). It is intended to be used

as the basis for class discussion rather than to illustrate either effective or ineffective handling

of a management situation. Copyright 2016 by ESMT European School of Management and

Technology, Berlin, Germany, www.esmt.org. ESMT cases are distributed through Harvard

Business Publishing, http://hbsp.harvard.edu, The Case Centre, http://www.thecasecentre.org,

and Ivey Publishing, https://iveycases.com. Please contact them to request permission to

reproduce materials. All rights reserved. No part of this publication may be reproduced, stored

in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means -

electronic, mechanical, photocopying, recording, or otherwise - without the permission of

From a small company to a global player

IKEA was founded in 1943 as a general mail-order company in a small village in Southern

Sweden. By then end of 2000, the privately owned IKEA Group was operating 151 stores in 29

countries with a turnover of about €9.5 billion (see Exhibit 1 and 2).3 IKEA continued to carry

out its mission of providing quality furniture with an innovative design at an affordable price to

average income consumers, in particular to families. IKEA had described its vision and business

plan as such: At IKEA our vision is to create a better everyday life for the many people. Our

business idea supports this vision by offering a wide range of well-designed, functional home

furnishing products at prices so low that as many people as possible will be able to afford

them.4 As early as 1955, IKEA established its innovative business model of self-assembly by the

customer and flat packaging for easier transport. IKEA founder and owner Ingvar Kamprad

described this as an optimal method “to avoid transporting and storing air.”5 IKEA opened its

first flagship store just outside of Stockholm in 1965. Opening a store close to Stockholm, IKEA

proved that the company’s new idea of producing and selling low-cost furniture could succeed

in a metropolitan market. With the innovative concept came the new idea of self-service in an

industry that had traditionally been dominated by large numbers of salespeople.6 In the mid-

1960s, IKEA began its international expansion, first to its Scandinavian neighbor Norway and

then moving into Denmark. In the next two following decades IKEA opened stores in much of

Western Europe, expanding into Germany in 1974 and France in 1981. Having opened stores in

Australia in 1975 and Canada in 1976, IKEA took on the US market almost ten years later,

opening its first store in Philadelphia, Pennsylvania in 1985.7 During its rapid expansion, IKEA

targeted young people between the ages of 20 and 35. Demonstrating its family-friendliness

and marketing savviness, IKEA launched the Family Card in 1984, a customer card giving

discounts and special deals to cardholders, including a free cup of coffee anytime one came into

the store.8 IKEA served the coffee in its own in-house restaurant, the first of which was opened

in Sweden in 1960.9 And of course, IKEA became famous for running small playgrounds and

offering child care while parents strolled through the exhibition halls. IKEA’s founder Ingvar

Kamprad stepped down as CEO in 1986, but as owner and honorary chairman, he maintained

significant influence on the company’s strategy and culture. The company culture and strategy

was often described as highly cost-cautious, sometimes even as stingy. 10 IKEA always sought

out the lowest possible production cost to provide the most competitive price.11 Accordingly,

the company’s internationalization was not only driven by the desire to sell more products to a

broader customer base but also the search for low-cost production opportunities and

capacities. IKEA turned into an international business early on.

Behind and after the fall of the Iron Curtain

Long before 1989, IKEA recognized that buying supplies from countries behind the Iron Curtain

would give them a competitive cost advantage, the Swedish retailer was already holding

contracts with factories in East Germany, Poland, and Yugoslavia. In the 1970s, supplies from

Eastern European contractors made up for around 20 percent to 25 percent of the company’s

total needs, even during the political turmoil and changes in 1989, around 15 percent of the

supply came from Eastern Europe.12 After the dissolution of the Soviet Union, IKEA quickly

seized the opportunity to expand its concept into Eastern Europe, first opening a store in

Budapest, Hungary, in 1990, and then moving into the Czech Republic and Poland the following

year.13 IKEA’s immediate success in these markets demonstrated that Eastern European

average income consumers really had a demand for stylish and budget-friendly furniture.

Between 1990 and 2000, IKEA opened a total of five stores in Poland, two stores in Hungary

and Czech Republic respectively, and one store in Slovakia. A move further eastwards to Russia

seemed like a logical next step. In 2000, IKEA planned to open its first store in Moscow. By

entering Russia, IKEA wanted to tap into a huge and potentially highly attractive market of

around 146 million consumers.14 Between its foundation in 1943 and 2000 IKEA had already

entered (and conquered) most of the established, developed economies and had even started

to move into emerging markets such as Malaysia (1996) and China (1998). Additional growth

was seemingly only possible by capturing market share in additional emerging markets – and

given its size Russia appeared to be an obvious choice, especially since IKEA had already

sourced raw-material and finished products from Russia before. In 2000 Russia was still

perceived as the Wild Wild East. In the decade after the fall of the wall, the country had been

going through political and economic turmoil including a slight decrease in its overall

population (from 148.3 to 146.6 million inhabitants from 1990 to 2000) and periods of

extremely high inflation and negative GDP growth.15 Only in the last few years before 2000 the

situation had gotten more stable even though inflation was still at 20.1%.16 But the economic

indicators seemed to point into the right direction and the country was still far behind the

European average consumption for furniture, with the expenditure rate estimated at €7 per

person in 2000. Compared to up to €300 spent annually per person in Germany, there was

certainly the prospect of a large and growing market, especially if a company could successfully

reach out to the emerging middle class.17 A Russian emerging middle class was eager to

improve its standard of living, including making changes to the interior design of its homes.

Little improvements had been done to apartments since Soviet times, with old-fashioned

cupboards and tables often being mixed with homemade essentials. Sovietmade furniture was

large and heavy and often filled almost all of the little space in small Russian apartments.18

According to the New York Times, Russian households seemed to be “a goldmine of need” for

durable goods.19 Russia, indeed, seemed to be a must for international retail chains in general.

Problems before opening the mall in Khimki

Soon after the decision to enter Russia, IKEA learned that doing business in this country

required some adjustment. The company had some initial successes, for instance in resolving

the issue of the calculation of import duties on furniture.20 However, IKEA soon struggled to

get hold of a prime location at the necessary low cost to fit into the business model. After an

unsuccessful search within Moscow, IKEA decided to open the first store three miles outside of

the city in a place called Khimki.21 Scouting the site, development, and construction took two

and a half years, but new issues came to light. After IKEA’s disastrous ad campaign, the city of

Moscow blocked the construction of an overpass that was supposed to ease the traffic to the

new store. The region’s officials were reported to order IKEA to build the overpass, but after

already investing $4.5 million, and with only two pillars left to build before the structure was

complete, the city of Moscow stopped construction. The city had control over a street that also

had to be passed, as the day of the opening came closer and closer, the traffic issue remained

unresolved. Finally, a few weeks before the grand opening of the first IKEA in Russia in 2000,

the local utility company reportedly approached the company’s management and gave an

ultimatum: Lennart Dahlgren, general manager of IKEA in Russia, could either pay a special

service fee or proceed without electricity.22 Already under pressure from the previous

challenges associated with the grand opening, Dahlgren had to act fast. Could IKEA afford to

postpone or even completely cancel the opening in Khimki? Or should he just pay whatever was

Corruption in Russia: IKEA’s expansion to the East (B)

Introduction

In line with IKEA’s image as innovative company, the organization came up with a creative

solution vis-à-vis the local utility company’s demand for a special service fee. Instead of paying

a bribe the global furniture retailer simply bypassed the utility company by renting diesel

generators to power the outlet.1 But IKEA will soon have learned that corruption in Russia was

systemic and could not be easily defeated through innovation or creativity alone.

IKEA’s successful grand opening in Khimki

The opening of IKEA’s first store in Russia was an enormous success. When the diesel

generators started operating in the morning to provide the necessary electricity for the lights,

computers, and cash registers, customers were already lining up outside to get in. About 37,000

people crowded the 31,000-square-meter store on the first day. But due to the unresolved

issues with the city of Moscow, the planned overpass to the store was still missing its last two

pillars. Consequently, the line of cars that were trying to exit the highway to IKEA was close to

five km long by noon. And even though 70.

ESMT. percent of the 265,000 people entering the outlet during the first weeks were only there

to take a gander, the remaining 30 percent of visitors (i.e. almost 80,000 people, which is more

than 6,500 per day) had already started adapting to the IKEA way of living. The company’s

assessment of the market proved to be correct: Most Russians were in need to upgrade the

interior of their apartments. Only three percent of all purchases were paid by credit card, and

the large number of middle-class cars in the parking lot demonstrated that it was not just the

upper class that could afford to buy IKEA.2 Hopes and plans for more IKEA stores on the base of

a huge potential market demand across the country were high. And things even looked

brighter: After realizing that IKEA was not going to play the corruption game, the utility

company caved in and started providing the necessary electricity. Nevertheless significant

challenges remained during the opening of the next spate of stores. During subsequent new

openings in Russia over the following years, IKEA reportedly faced similar bribing attempts from

utility companies. Then the retailer followed the established pattern of renting diesel

generators to provide enough electricity for the large shopping malls in which the IKEA stores

were located. And IKEA executives took pride in having found a creative solution to the

demands for bribes. In a newspaper interview, Lennart Dahlgren commented: “We Swedes are

poorly educated in corruption. Whoever complains about corruption should know one thing:

Without anybody giving, there is nobody to receive.”3

Plans for expansion in Russia

As of the end of 2008, IKEA had opened eleven giant shopping malls, called MEGA malls, in

Russia. MEGA malls housed not only IKEA stores, but also other retailers, restaurants, and

entertainment facilities like skating rings.4 Three IKEA outlets were located in Moscow, where

the first two stores were opened in 2000 and 2001. St. Petersburg followed in 2003 and

received another store in 2006. In 2006, IKEA opened a total of three stores, the most in any

single year, and then slowed down its expansion, opening just two stores in 2007 and one in

2008.5 IKEA had planned to expand more quickly in Russia; the declining rate of openings

reflected an increasing level of problems, most of which had to do with administration and an

opaque Russian bureaucracy. Like the issue with the half-finished overpass, IKEA repeatedly

encountered more bureaucratic challenges. A classic example was the planned construction of

a MEGA mall in Samara. The construction began in 2007, but local officials repeatedly

prohibited IKEA from opening the Samara store due to the violation of “numerous safety

regulations and other rules”.6 Apparent problems like this continued to put a damper on IKEA’s

rapid expansion plans. Despite the slowdown in opening new stores, Russia already accounted

for almost five percent of IKEA’s global business at the end of 2008. The company initially grew

at a rate of 20 percent per year in Russia and enjoyed an increasing popularity with the general

public, making it necessary for emergency vehicles to be on the scene of grand openings of new

stores.7 IKEA clearly wanted to be in Russia, and to grow even faster than their current rate.

Russian customers, in turn, wanted IKEA products. But external circumstances seemed to

hinder the company to grow.

A growing concern within IKEA

After several years of business in Russia, the focus moved from external to internal issues.

Refusing to give in to the seemingly systemic corruption in Russia, IKEA continued to rent diesel

generators whenever a local utility company tried to solicit bribes to provide electricity. This

tried-and-true method worked for years and seemed to be the ideal solution for getting around

the bribes. The company once again rented diesel generators when confronted with the

request to pay bribes from utility companies before the opening of two malls with IKEA stores

at the end of 2006. The stores opened on schedule and just in time for the year-end shopping.

But still at the end of 2008, generators were still supplying electricity for both malls, because

the companies asking for special fees proved to be stubborn.8 At the beginning, IKEA did not

notice the skyrocketing rental costs for the diesel generators but over time, the first signs of an

underlying issue surfaced. In 2008, when IKEA became aware of the high costs, the board hired

a private investigation company based in London. After examining the Russian operation, the

investigators identified a former employee who testified that a Russian IKEA executive in charge

of renting and managing the generators was responsible. Apparently, the manager was taking

substantial kickbacks in the form of weekly cash payments from the diesel generator rental

company. Allegedly, the generator company charged IKEA a much higher than normal rental

price. This suspected fraud might have been occurring for more than two years, and IKEA

estimated the damage to be around €135 million. When confronted with the allegations, the

IKEA executive denied any wrongdoing, and the owner of the generator rental company argued

that the high costs were due to the fact that the generator had been rented as standby power

source, but had supplied the two MEGA malls continuously for years.9 While the diesel

generators were still buzzing after two years in operation, and while the customers were still

rushing into the 11 Russian stores, IKEA had to turn its attention inside its own organization.

After findings of alleged corruption within the organization, IKEA faced a new issue: internal

corruption. Which next steps should the company have taken in the short and long run to

address those problems?

Corruption in Russia: IKEA’s expansion to the East (C)

Introduction IKEA decided to follow through its no-corruption policy, after the discovery of

signs of corruption within the organization. IKEA terminated the contracts with the diesel

generator company and with the purchasing manager, even though both insisted on their

innocence. The former IKEA employee accused of accepting kickbacks denied any wrongdoing,

and claimed instead that IKEA’s country managers were trying to cover up their own expensive

incompetence by blaming Russian subordinates. He also argued that the Russian police

investigated and cleared all IKEA’s allegations1 .

The blindfolded Justitia in Russia

Once so proud of their innovative solution to bribery attempts in Russia, IKEA executives were

forced to recognize that the systemic problem had not been solved. Christer Thordson, an IKEA

board member and global director of legal affairs, publicly admitted that IKEA was slow in

recognizing the soaring rental costs for generators. He blamed IKEA’s “pell-mell rush to expand

After this experience, IKEA executives might have wanted to regain control. In addition to the

termination of the contracts with the diesel generator company and with the purchasing

manager, IKEA went to court and claimed compensation for fraud. However, instead of

receiving reimbursement for the alleged €135 million in damages from the kickback scheme, an

arbitration appellate court in Moscow ruled in June 2009 that IKEA had to pay €5 million for

breach of contract to the diesel generator company.3 IKEA appealed, but had to deposit the €5

million in an escrow account, to be paid to the head of the generator rental company only if the

appeal was lost as well. In another instance, a lower court ordered that the money also be

directly withdrawn from IKEA’s account. At this point IKEA had paid out €10 million – twice as

much as the initial ruling, although the appeal process had not started yet.

Opaque and absurd

While the denial of corruption in Russia was widespread, the country’s politicians started to

admit that the country was having a problem. Several high ranking politicians repeatedly

criticized corruption as a significant impediment to foreign investment. They were also urged to

take action from non-government organizations such as Transparency International (TI). TI

published an annual Corruption Perception Index, which measured in a composite index the

perceived levels of corruption in various countries and which ranked Russia (together with

Bangladesh and Kenya) in 2009 at place 146 (seven places behind Pakistan) from 180 countries

in the area of “clean government and business” (see Exhibit 1).5 Despite public statements,

Russian leaders did not seem to have an answer to corruption by 2009. In the same year,

Russian President Dmitri A. Medvedev enacted a law prohibiting surprise inspections from state

employees, a practice often used by fire fighters and health department employees as a decoy

for extortion. This law also required that spouses of bureaucrats disclosed their income and

assets so that tax evasion and money laundering within the family became more difficult.6 TI’s

reaction was cautiously optimistic. And while TI applauded IKEA’s position regarding corruption,

the NGO also said about the larger context: “[I]f companies like IKEA don’t see results in their

daily business practices, it’s sad news for Russia.”7 The National Anti-corruption Committee

estimated that one-fifth of the annual GDP in Russia, almost $200 to $300 billion, was paid out

in bribes to bureaucrats. Lennart plgren, first general manager of IKEA in Russia, had stepped

down in 2006 and written a book titled Despite absurdity: How I conquered Russia while it

conquered me.8 In this book he remembered that there were often so many bureaucrats in the

IKEA offices that it was impossible to tell them apart from employees.

When a market is almost too attractive

Russians needed furniture. It was as simple as that. A legacy from the Soviet era had been a

lingering deficit of durable consumer goods, including furniture. The growth rate within Russia

averaged 20 percent for IKEA for most of the 2000s, which definitely made it easier to ignore

the challenges of doing business in what the New York Times described as “a maddeningly

opaque but potentially lucrative market of 140 million people.”10 And despite all their

struggles, IKEA managed to open their 12th store, another 25,000 sqm, in Omsk in 2009.

By this point, IKEA seemed able to overcome graft, corruption, and an opaque bureaucracy with

persistence and adherence to company policies and, more importantly, with creativity. The

Moscow Times quoted Dahlgren as he described the necessity of getting more than 300

separate permits to build a store: “If we had waited to receive them all, we would have lost

years.”11 Accordingly, the company had seemingly always looked to come to agreements with

local authorities so that they could begin construction and receive the permits “in the

process.”12 But the problems had not only spilled over from external to internal challenges:

After the court’s ruling and the double withdrawal of the €5 million, it seemed as if the

problems also extended beyond the business arena into the judicial system, which unveiled an

even larger societal issue. On the one hand, IKEA seemed to be alone in this fight, but on the

other, the Swedish retailer had to wonder if there was anything that the company could do to

enable its continuous operation in a market that seemed to be toxic. How could IKEA continue

to do business in a country placed in a cluster of the 20 percent most corrupt countries in the

world, and in which even the legal system apparently failed to provide the necessary level of

security for business? The average Corruption Perception Index of all countries into which IKEA

had expanded since its foundation per decade had fallen from 8.7 in the 1950s-1970s to 5.4 in

the 1990s. In 2009, Russia scored only a shockingly low 2.2 (see Exhibit 2). Had IKEA, in its

decades of geographic expansion, grown too far?

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  23. Discussion

    in a metropolitan market. With the innovative concept came the new idea of self-service in an industry that had traditionally been dominated by large numbers of salespeople.6 In the mid- 1960s, IKEA began its international expansion, first to its Scandinavian neighbor Norway and then moving into Denmark.