Seminar: IKEA in China: Try Before you Buy?

Topic Number:3

Industry Studies 1

Overview

IKEA is the most successful home furnishing businesses in the world, located in over 26 countries. Its vision “to create a better everyday life for the many people” encapsulates its desire to offer quality, relevant and affordable home furnishing solutions across the world.

One of IKEA’s core strategies is to grow by entering new markets such as China. However, in doing so they have come up against a number of hurdles where they have had to make considerable changes to their business model to adapt to local preferences.  In this seminar, we will evaluate their approach as they went into the Chinese market. We will initially understand the global business model that they traditionally adopt and thereafter, we will critically evaluate the way they needed to adapt to be successful in China.

Thirdly, we will look at their success to date and finally make recommendations as they move into other markets.

3

• Develop and determine IKEA’s global business model and strategy

• Critically evaluate the changes they needed to make when entering the Chinese market

• Evaluate and describe the success they have had to date in China

• Be able to make recommendations on how they should grow sustainably

Learning outcomes of this seminar

Agenda for this seminar

Critically evaluate the changes they needed to make when entering the Chinese market

Evaluate and describe the success they have had to date in China

Explain their plans to grow internationally in a sustainable way

Present an overview of IKEA’s global operations and strategy

Structure for the session

You will have 15 minutes to

discuss each question

We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area

Feel free to ask questions but please do not have separate conversations ‘we are all in

this together’!

A Man With Simple Tastes

I could regularly travel first class, but having money in abundance doesn’t seem like a good reason to waste it. Why should I choose first class? To be offered a glass of champagne from the air hostess? If it helped me arrive at my destination more quickly, then maybe.

Ingvar Kamprad

Consider the role of a founder on the companies culture and values…

Present an overview of

IKEA’s global operations and

strategy

Discuss

Critically evaluate the changes they needed to make

when entering the Chinese market

Discuss

Evaluate and describe the success they have had to

date in China

Discuss

Explain their plans to grow

internationally in a sustainable

way

Discuss

End of Seminar

Note: This recording is for your personal use only and not for further distribution or wider review.

© Pearson College 2013