What are the competencies of IKEA to venture into different markets globally: International Business Dissertation, UOK, UK

CASE STUDY ON IKEA GLOBALIZATION STRATEGY

• What are the competencies of IKEA to venture into different markets globally?
• What is the strategy of IKEA to enter the China market, and its standardization strategy?
• What is the strategy of IKEA to enter the Indian market, and its standardization strategy?
• What are the advantages and disadvantages of IKEA in India?
• What are the advantages and disadvantages of IKEA in China?

IKEA’s and its Globalization Strategy

IKEA is Swedish –Dutch based multinational company started in 1943 in the southern part of Sweden called Småland as a one-person delivery order company. The then 17-year boy founder, Ingvar Kamprad initially organized for the home town country milk vehicle to deliver the things near the neighboring train station.  Since 2008, Ikea is recognized as the world’s largest furniture retailer. IKEA as of March 2021 there are 422 stores operating in 50 countries. According to financial year 2018 statistics, IKEA sold goods worth US$44.6billion.

In 1950, IKEA started marketing with catalogue combined with an outlet where clients may perhaps visualize and feel IKEA products. There are three main corporation's different features were function, quality, and low price. Difficulties through sellers lead the way for the company to jump buying from overseas manufacturers in Eastern Europe. In the 1960s, the corporation announced the warehouse principle. In Stockholm, a huge outlet started operations where clients selected the goods from the shelves onself. IKEA twisted a volume issue into a advanced method of transporting goods to clients, which is nowadays a keystone in the IKEA process of operating business.

The initial oversea store of IKEA started operation in 1963, in neighboring Norway, outside Oslo. IKEA believed of the idea in utilizing untraditional resources for fixtures, like plastics, that completed IKEA pattern well recognized wide-reaching. The firm focused on younger families. Since the 1990s IKEA has been aiming Eastern and Central Europe.