Ikea Case
Individual Assignment: Case on IKEA: Expanding through franchising to the South American market.
The objective of this paper
1. Until now, IKEA’s international marketing strategy has been centrally controlled by corporate headquarter. However, the case study identifies a number of challenges facing the company including culture and demographic differences around the world. How should IKEA react to this challenge? 2. How attractive is Brazil for IKEA? And which market entry method do you recommend, and why? Introduction
IKEA is a Swedish furniture company which has a unique design and applied a traditional internationalization strategy as centralisation. Certain marketers agree that the standardized marketing strategy which focuses on the similarities among cultures and develops global marketing plans eliminating the need of culture can be used for creating strong global brands and expanding business globally without any problems. The marketers employ this approach as a result of they see the world as a one large market in which difference between cultures have diminished and consumers have developed similar needs and want independent of location. However, there has been a long debate on the issue why many marketers try to change the approach of internationalization from standardization to adaptation which focuses on cultural uniqueness for each local market.
In this essay will discuss “How should IKEA adjust its conservative strategy as regardless of cultural boundaries, How attractive is Brazil for IKEA, and which market entry modes do you recommend, and why?” Moreover, this paper also focusing on the advertising strategy related to a cross culture as it is an important appearance for IKEA in the global market so IKEA need to understand the nature of people in difference countries.
Overview of case study
From the case study of IKEA, IKEA used franchising as an entry method for expanding to Brazilian market. It brings several problems
The objective of this paper
1. Until now, IKEA’s international marketing strategy has been centrally controlled by corporate headquarter. However, the case study identifies a number of challenges facing the company including culture and demographic differences around the world. How should IKEA react to this challenge? 2. How attractive is Brazil for IKEA? And which market entry method do you recommend, and why? Introduction
IKEA is a Swedish furniture company which has a unique design and applied a traditional internationalization strategy as centralisation. Certain marketers agree that the standardized marketing strategy which focuses on the similarities among cultures and develops global marketing plans eliminating the need of culture can be used for creating strong global brands and expanding business globally without any problems. The marketers employ this approach as a result of they see the world as a one large market in which difference between cultures have diminished and consumers have developed similar needs and want independent of location. However, there has been a long debate on the issue why many marketers try to change the approach of internationalization from standardization to adaptation which focuses on cultural uniqueness for each local market.
In this essay will discuss “How should IKEA adjust its conservative strategy as regardless of cultural boundaries, How attractive is Brazil for IKEA, and which market entry modes do you recommend, and why?” Moreover, this paper also focusing on the advertising strategy related to a cross culture as it is an important appearance for IKEA in the global market so IKEA need to understand the nature of people in difference countries.
Overview of case study
From the case study of IKEA, IKEA used franchising as an entry method for expanding to Brazilian market. It brings several problems
References: Chang, L.T. (2004), “China Eases Foreign Film Rules”, the Wall Street Journal, October 15, p. B2. IKEA Annual Report (2002), www.ikea.com