Ikea 's Rapid Growth Into International Markets Essay example

1403 Words Nov 23rd, 2016 6 Pages
IKEA’s rapid growth into international markets, matched with unyielding Swedish cultural values, has led to inflexible corporate structures that are unable to adapt to diverse consumer behaviour in the global context. With the rise of competition in the low-cost furniture industry, IKEA must remain fierce in protecting its market share. Although IKEA has adjusted its ways in North America, much more cultural localization is needed for success in Asia. IKEA must internalize its Swedish values and engage wholly with the wider sociocultural milieu. This direction requires a restructure to allow for a new business division that is modelled after IKEA’s flat virtual organizational structure. Most crucially, this new geographical unit will be controlled by a management team with the necessary skills to engage with cultural diversity.
Background
Ingvar Kamprad grew up among the everyday people of rural Sweden, and it was the common folk that he kept in mind through his multiple business ventures before building the low-cost furniture juggernaut known as IKEA. Devoted to the working class man, the firm applauds frugality, pragmatism, and humbleness above all else and is unyielding in its mission to bring “a little bit of Sweden” into working class homes across the globe. However, the devotion to exporting the Swedish ethos has, more than once, hindered the firm from being fully accepted internationally. Both North America and Asia have faced difficulties in welcoming IKEA because…

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