| Case Title |
IKEA's Globalization Strategies and its Foray in China |
| Case Author(s) |
Senthil Kumar Vivek Gupta
|
| University |
ICFAI Center for Management Research, India |
| Abstract |
The case discusses in length about Sweden based IKEA's globalization strategies and its foray in the Chinese furniture market. The basic assumption behind IKEA's global strategy was 'one-design-suits-all,' which meant that the company did not adapt to the local markets. The case presents how IKEA was forced to change some of the elements of its global strategy in the culturally diverse Chinese market. It highlights the importance of striking a balance between the implementation of global policies and the need for higher degree of localization for IKEA to be successful in markets like China. The interrelationship between IKEA's culture, structure and strategy and its responsiveness to the needs of local markets are also highlighted. |
| Available In |
ECCH Case Collection |
| Publisher |
ICFAI Center for Management Research (ICMR) |
| Publisher Case No. |
306-189-1 |
| Distributor(s) |
European Case Clearing House
|
| Pub/Rev Date |
2005 |
| ISBN |
|
| Case Length |
16 pgs |
| Teaching Note |
Yes |
| Pub TN Ref No. |
306-189-8 |
| Pages (TN) |
16 pgs |
| Issues |
Role of socio, economic, political and cultural factors that prevail in China in shaping IKEA's strategy in China; need for IKEA to strike a balance between globalization (integration) and national responsiveness (differentiation) in China. |
| Organisation(s) |
Ikea
|
| Countries |
China |
| Industry |
Furniture, Textiles, Crafts & Jewellery |
| Period Covered |
1995 - 2005 |
| Level |
Postgraduate |
| Links of Interest |
IKEA China's Website
|
| Back |