Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 17 pages
Data source: Published sources
Abstract
The case discusses in length about Sweden based IKEA's globalisation 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 polices and the need for a higher degree of localisation for IKEA to be successful in markets such as China. The interrelationship between IKEA's culture, structure and strategy and its responsiveness to the needs of local markets are also highlighted.
Teaching and learning
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Abstract
The case discusses in length about Sweden based IKEA's globalisation 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 polices and the need for a higher degree of localisation for IKEA to be successful in markets such as China. The interrelationship between IKEA's culture, structure and strategy and its responsiveness to the needs of local markets are also highlighted.