The company I have chosen to review is IKEA. IKEA is a multinational group of companies that designs and sells furniture that is ready to assemble. IKEA sells items such as beds, chairs, desks, appliances, and home accessories. In January 2008 IKEA was named the world’s largest furniture retailer. IKEA was founded in Sweden in the year 1943 by Ingvar Kamprad. Ingvar at the time was only 17 years old when IKEA was founded. In the year 2013 Ingvar was listed as one of the world’s richest. IKEA is mainly knowns for their modern architectural designs for their furniture and appliances. IKEA’s interior design work is often eco-friendly with consumer friendly prices, due to their attention to cost control and global expansion. IKEA group is known
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As a company you need to know the country’s history and business expectations. As discussed within the course one must be very diverse on how to properly greet someone, times of meetings, and expectations of business within the countries culture. IKEA would also want to gather historical data on the country’s currency value and import and export timelines. It is important to know a country’s fluctuation of currency as pricing, business deals, and importing/exporting pricing could change within days, weeks, months, or years. IKEA would want to research the country’s laws governing business as well. IKEA should consider hiring a local representative to help navigate any unforeseen obstacles and also explain contract provisions and terminology. Lastly and most importantly in my opinion would be to research competition and “test the waters” in the country’s international market. This is extremely important because a company needs to be not only competitive with fellow businesses but also have a need within the market of consumers. A company needs to question is our product suitable for the market and are expectations of the product met within the international market. When IKEA entered the Chinese market in 1998 it caused for confusion among the consumers as local competitors copied IKEA’s designs. To meet local laws IKEA formed a joint venture and this served as a platform to test the Chinese market and understand the local needs and adapt to strategies. IKEA did end up making modifications to its furniture and appliances to meet the standard sizes of Chinese apartments, as they are normally small within
As a company you need to know the country’s history and business expectations. As discussed within the course one must be very diverse on how to properly greet someone, times of meetings, and expectations of business within the countries culture. IKEA would also want to gather historical data on the country’s currency value and import and export timelines. It is important to know a country’s fluctuation of currency as pricing, business deals, and importing/exporting pricing could change within days, weeks, months, or years. IKEA would want to research the country’s laws governing business as well. IKEA should consider hiring a local representative to help navigate any unforeseen obstacles and also explain contract provisions and terminology. Lastly and most importantly in my opinion would be to research competition and “test the waters” in the country’s international market. This is extremely important because a company needs to be not only competitive with fellow businesses but also have a need within the market of consumers. A company needs to question is our product suitable for the market and are expectations of the product met within the international market. When IKEA entered the Chinese market in 1998 it caused for confusion among the consumers as local competitors copied IKEA’s designs. To meet local laws IKEA formed a joint venture and this served as a platform to test the Chinese market and understand the local needs and adapt to strategies. IKEA did end up making modifications to its furniture and appliances to meet the standard sizes of Chinese apartments, as they are normally small within