IKEA's Globalization Strategies and its Foray in China

  
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR173 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

-
Case Length : 16 Pages
Period : 1995-2005
Organization : IKEA
Pub Date : 2005
Teaching Note : Not Available
Countries : China
Industry : Furniture and Home furnishings

Abstract:

The case discusses in length about Sweden based IKEA's globalization strategies and its foray in the Chinese furniture market. The basic assumption behind IKEA's global strategy was 'one-design-suits-all,' which meant that the company did not adapt to the local markets.

The case presents how IKEA was forced to change some of the elements of its global strategy in the culturally diverse Chinese market. It highlights the importance of striking a balance between the implementation of global polices and the need for higher degree of localization for IKEA to be successful in markets like China. The interrelationship between IKEA's culture, structure and strategy and its responsiveness to the needs of local markets are also highlighted.

Issues:

» Role of socio, economic, political and cultural factors that prevail in China in shaping IKEA's strategy in China

» Need for IKEA to strike a balance between globalization (integration) and national responsiveness (differentiation) in China

Contents:

  Page No.
IKEA's Global Strategy 1
Background Note 2
IKEA's Corporate Structure 2
Swedish Identity 3
IKEA's Globalization Strategy 8
Business Environment in China 5
IKEA in China 6
The Challenges Ahead 8
Exhibits 10

Keywords:

IKEA, Globalization, Standardization, Localization, IKEA Way, Do-it-yourself (DIY) Principle, Corporate Structure, Corporate Identity, Business Environment in China, Chinese Furniture Market, Business Model, Low-Price Strategy, Corporate Culture, National Responsiveness

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