Why Ikea Go International Case Study

INTRODUCTION:- Jurlique International Pty Ltd. is an Australian cosmetics manufacturer specializing in natural botanical-based skincare and cosmetics under the brand name Jurlique. Jurlique is considered ethical and environmentally friendly. Jurlique was founded in 1985 the Australian state of South Australia by Dr Jurgen Klein and his wife Ulrike. The company 's name is based on a phonetic combination of their first names.

Problem or crisis statement With the globe becoming a small place to transact we are seeing interior designing becoming a prominent name in the world. With the utilization of internet, television and magazines it is now possible to instruct ourselves and have a better comprehension of the various trends and themes that are taking place across the globe. It is very important to understand that globalization has had a great impact on interior designing. For architectural firms this is great news as they can now utilize architectural drafting for interior designing purposes. Moreover, it can also be utilized for preparing technical drawing interior design.

Porter’s Five Forces Porter’s Five Forces framework is to identify the level of competition within the industry and to determine the strengths or weaknesses which can utilise to strengthen the position. The framework consist of five elements: threat of entry, bargaining power of supplier, bargaining power of buyer, threat of substitutes and industry rivalry. Forces Analysis Implication Threat of new entrant Low Threat Diversified of product There are high demand of furniture and electrical appliance.

Market All countries have a very different lifestyle. Having a global strategy does not mean that a company should serve the entire globe. Critical choices include deciding where to spend resources and where to hang back. The usual approach is to start by picking regions and then countries within them. Market data might be more readily available in situations where the firm is grouping markets according to existing structures and frameworks.

CONTENTS Introduction Definitions Link between strategic management and leadership Impact of management and leadership styles on strategic decisions Management and leadership styles Adaptation of leadership styles in different situations Organizational strategy Impact of theories on organizational strategy Formulation of strategy for organization Methods to review leadership requirements Leading Managing

I. INTRODUCTION a. BACKGROUND: Globalization is a process of interaction and integration among the people, companies, and governments of different countries, a procedure compelled by international trade and investment, and supported by information technology. Furthermore, this process has an effect on various other systems such as on the environment, culture, political systems, economic development and prosperity and lastly, on human physical well-being in societies around the world. “Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion” (York, 2016). Technology has been another primary driver of globalization,

In 1974, Delhaize took its first step of internationalization by entering the US market. He progressively acquired market shares in US and continued its internationalization process by entering Southeastern Europe in the early 1990s, and the Indonesian market in 1997. In this section we will try to understand the pressures that pushed Delhaize to internationalize. George Yip provides a framework to analyze the “globalization drivers” that are most likely to influence a company’s decisions to expend its business internationally. The four drivers of internationalization that he identified are: market drivers, cost drivers, government drivers and competitive drivers.

I will be analysing the international strategic moves of H&M H&M is Swedish multinational company, it is a clothing retailer and is known for its fast fashion for men, women, children. The first store od H&M was open in Sweden in 1947 on the high streets of Vasteras. It is also ranked as the second largest retailer of clothing.

Global strategy is an international strategy that implements by a company which they doing their business in different countries. Internationalization is a process for IKEA expand its business and it was quite important because through the internationalization process, IKEA was able to gain a broader area of marketplace to sales their products, which will lead to profit and revenue increased and new market places existed mean new opportunity for IKEA to improve their product in order to meet the customers’ needs. The first reason that IKEA should go to international level is because the Swedish market is small and no enough for IKEA to expand itself. This is important for IKEA because the small market mean low opportunity, lower profit and

International marketing strategy is a combination of marketing principle that could be used to formulate a marketing strategy for specific products and services within one or more countries to extend or internationalise the company. The research paper is based on the international marketing strategy of Nike Inc. (a Sports Apparel retail company working internationally) to help the management of the company shortlist and identify potential market for them to expand their business. It utilised macro and micro analysis of the sports retail market to identify the potentials of the industry that would help them to increase their business performance in the international marketplace. Macro Factors PESTLE It is noted that PESTLE is one of the most important and effective that often used by organisations in order to assess different macro factors that influence their activities in a negative manner (Li, et al., 2014).

IKEA uses franchises in order to reach other markets in which it does not have stores yet to take advance of the local knowledge and expand their brand. The company must also decide based on the market what is the best strategy in order to reach the customer and not just the strategy that will help it enter the country. The author Cunningham (1986) identified five strategies in order to enter a new market: • Technical innovation strategy – for products which are perceived and demonstrable superior as seen by the customer. • Product adaptation

Swedish interiors are simple, light, elegant, livable, usually with high ceilings and lots of wood, and incorporate minimal accessories. Typically with all-white walls, ceilings, and floors, Swedish interiors create a sense of calmness, cleanliness, and freshness. High-quality furnishings made of natural materials lend Swedish spaces a timeless look and an organic vibe. Including varying textures adds visual interest and helps create layered interiors.

Founded in Sweden at 1943 by Ingvar Kamprad, IKEA is a value-driven company with the vision “To create a better everyday life for the many people”. As of January 2009, the company became the world’s largest furniture designer and retailer. Currently, IKEA owns and operates 351 stores in 43 countries across Asia, Europe, North America and Australia. The company’s product range consists of 9,500 home furnishing articles, of which they are known to be well-designed, functional and inexpensive.

Introduction When people think about globalization, they often first think of the increasing volume of trade in goods and services. Trade flows are indeed one of the most visible aspects of globalization. But many analysts argue that international investment is a much more powerful force in propelling the world toward closer economic integration. Investment, often alters entire methods of production through transfers of know-how, technology and management techniques, and thereby initiates much more significant change than the simple trading of goods. Over the past ten years, foreign investment has grown at a significantly more rapid pace than either international trade or world economic production generally.

AC 2.1 – Evaluate the effectiveness of strategies used by IKEA to maintain supplier relationships and evaluate the effectiveness of these strategies. Proficient administration of suppliers is the vital path for assembling organizations can propel their execution. There are numerous huge parts of supplier administration; they join sourcing methodologies, and the way connections are overseen and the data trade arrangements embraced by IKEA. Taking into account the way that when in doubt, top of the line items are fabricated by various diverse suppliers. IKEA had 1,400 worldwide suppliers, 60% its suppliers are from European nations.