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IKEA. IKEA, the famous Sweden furniture retailer, opened its first store in United
States in 1985. ... IKEA is planning to open another eight stores next year. ...
ikea. ... IKEA customers help to keep prices low by picking their furniture up at their
store’s warehouse, transporting it home and assembling it themselves. ...
IKEA case. 1. What were the sources of IKEA’s successful entry into the furniture
retailing business in Sweden? ... 4. What challenges lie ahead for IKEA? ...
IKEA Case. Since its creation in 1943, IKEA has created many firm-specific
advantages for itself. First, IKEA has standardized the ...
IKEA. IKEA With its affordable Scandinavian chic, IKEA transformed millions of homes
across the world with easy-to assemble flat-pack furniture. ...
Submitted by Meilinglee on April 16, 2008
Category: Business
Words: 1197 | Pages: 5
Views: 135
Popularity Rank: 72,423
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A. What are the cultural factors which make expansion abroad in retailing difficult? What has made it possible in IKEA's case?
Retailing expansions can be difficult, because of differences in culture in the global market. When entering a new market, corporations tend to do considerable studies catered towards local tastes. There are many factors to consider when expanding into a new area or culture, because culture can have a great impact on merchandising, and promotion of products. (Hibbert, Edgar 2000;)
The retailing difficulties are not only limited to merchandising and promotion but the cross-over of store brands and brand images. The social systems and social behavior also affects the corporation as different management styles and company cultures may be difficult for employees to adjust to and their maybe clashes which can make the whole process less effective and also less efficient. If there are major differences in the existing culture and language difficulties it may establish greater cultural barriers.
Culture also affects the four P’s in marketing the new product abroad, there can be difficulties and adjustments if the new market is price sensitive, has a high context culture and the corporation came from a country with a low context culture or vise-versa which can affect the promotion of the product. In another case study presented it was highlighted, that some cultures associate the price of a product with the quality of the product. (Hibbert, Edgar 2000;)The culture of the country also dictates if the target markets will be living in urban, rural or suburban areas and research must be done to show if they would be willing to travel out of their area to come to a different place to obtain the product.
In expanding to global markets retaining corporations will have to take into consideration the import, duties and taxes, and also government rules and regulations. The cost and availability of land, for example...
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