Essay on Ikea China Marketing Analysis

5733 Words Sep 22nd, 2013 23 Pages
International Marketing Report of IKEA in Chinese Market

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12BSP040 INTERNATIONAL MARKETING

School of Business and Economics
2013. 04. 22
Contents

1. Executive Summary 1
2. Introduction 2
3. Internationalization 3
4. Foreign Market Segmentation and Targeting 5
5. Environmental Analysis 7 5.1 Strengths 7 5.2 Weakness 8 5.3 Opportunities 9 5.4 Threats 10
6. International Marketing Objectives 11
7. Foreign Market Entry Strategy 12
8. Product/ Service Mix Preparation 13 8.1 Product---Chinese Beauty 13 8.2 Service---DIY Guiding Video 16
9. Conclusion 17
References 19
Appendices 21
Executive Summary

As the world's largest furniture retailer that designs and sells
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Specifically, owing to living standard enhancement and real estate development in China, the demand for the purchase of furniture turns apparently strong. However, the expansion of IKEA is relatively slow since it entered into China. Only 11 IKEA stores were established, which located mainly on eastern coastal areas. Accordingly, it is beneficial for IKEA to take expansion in China (Hansegard, 2012).

Secondly, China has developed to be the biggest purchasing country of IKEA owing to the availability of cheap labor and rich natural resources (IKEA group, 2012). In the meantime, sound operation system and distribution network have been established during the past 15 years. All in all, it offers a foundation for IKEA expansion, which ensures the feasibility of this proposal.

3. Internationalization

Internationalization can be regarded as a process of discovering and getting involved in the international markets for enterprises with comparative cost advantages. In fact, there are several kinds of internationalization models, among them, the Uppsala Model, which is the most famous but also the most criticized stage model, describes four stages of internationalization: No exports; Exports via agent; Sales subsidiary and wholly owned subsidiaries. Furthermore, this model not only focuses on marketing knowledge, commitment and change aspects, but also stresses psychic distance (Johanson &

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