Ikea

IKEA Case Study

Expanding through franchising to the South America

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Оглавление

IKEA History 3

Structure of the IKEA Group of companies 3

Product development and production 4

Consumers 5

Hierarchical entry mode alternatives 5

Joint Venture and strategic alliances 6

IKEA strategy. 6

Suppliers. 6

Multiplied competitive advantage. 7

The internationalization of IKEA 7

Expansion by franchising 7

Balance of autonomy and strategic direction 7

The Brazilian market for furniture 8

Should IKEA penetrate the South America market by establishing a shop in Brazil? 10

Conclusion 10

Recommendations 10

Список литературы 12

IKEA History

IKEA Swenska AB was founded in 1943, world’s largest furniture retailer, which is concentrates in stylish but not expensive Scandinavian designed furniture. The founder of IKEA, Ingvar Kamprad from Agunnaryd, Sweden, registered the name IKEA in 1943. The name was formed from the founder’s initials IK plus the first letters of his farm Elmtaryd and village Agunnaryd, where Ingvar Kamprad grew up.

In 1958, the first IKEA store was opened in Älmhult, Sweden. Then IKEA started its internationalization process. (Hollensen, 2011)

IKEA has grown into the world’s largest furniture retailer, with more than 300 stores in 41 countries (2011) and employees of 120,000 people world wide since its first outlet opened in Älmhult in 1958. The IKEA Group owns itself 272 stores in 25 countries. Which are in Australia, Canada, Finland, Germany, France, Russia, Italy, Japan, Poland, and Portugal etc.

The other stores are owned and controlled by franchisees in UAE, Greece, Saudi Arabia, Spain, Turkey, Malaysia and Netherlands. (IKEA, 2012)

IKEA’s success in the retail industry can be described by the huge experience in this sphere, where they offer different furniture products for low prices. IKEA is the world’s one of the most successful companies in retailing market, which...