[Investigation international market entry and local customer behaviours: Case Study of IKEA's marketing strategies]

by

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

For more than a decade, market orientation approach has been most prevalent in marketing literature. According to this approach, firms reactively respond to market conditions and customer trends. The market driving approach is characterised by an ability of the firm to proactively shape the market structure and offer completely new value propositions through its unique business process, thus changing the existing market conditions. The purpose of this paper is to explore how a global supplier network is developed to support the market driving strategy. IKEA is considered one of the leading market driving firms. We have studied its activities in establishing supplier networks in Russia and Poland. Findings confirm IKEA's market driving strategy and how it has been able to restructure the market and successfully develop an efficient supplier network as a part of its market driving strategy. IKEA is considered as retailer internationalization who expands into Japanese market as a result of deregulation and asset-based advantage while internationalize into Chinese market because of supporting environments such as political, social and economic conditions as well as transaction advantage. To success and failure, psychic distance and learning, strategic decision making process, degree of adaptation of retail offer, entry strategy, characteristics of organization and management characteristics are the influencing factors on internationalization of IKEA in the Japanese and Chinese markets.

TABLE OF CONTENTS

ACKNOWLEDGEMENT2

DECLARATION3

ABSTRACT4

CHAPTER 1: INTRODUCTION1

Background of the Study2

Aims and objective2

Research questions3

CHAPTER 2: LITERATURE REVIEW4

Company Overview4

Ingvar Kamprad Elmtaryd Agunnaryd4

Organisation Culture Emergence5

A Furniture Retailer Testament6

The first The range - our identity6

The second IKEA spirit. A strong and living reality6

The third A win gives us resources7

The fourth The fact that with limited resources to achieve good results7

The fifth Simplicity is a virtue7

The sixth Line different7

The seventh Concerted efforts - important to our success8

Eighth Taking responsibility - a benefit8

9th Most things still undone. A glorious future!8

Power Distance8

Collectivism and Individualism10

Gender roles10

Uncertainty avoidance11

Human Resource Management's responsibility12

CHAPTER 3: METHODOLOGY1

The Approach1

Preliminary study1

Literature Collection2

Choice of method3

Interviews3

Analysis of data5

Method Discussion6

Source Gran King6

CHAPTER 4: DISCUSSION AND ANALYSIS8

Organisational culture11

Cultural differences13

Human Resource Management14

CHAPTER 5: CONCLUSION17

Suggestions for further studies,19

REFERENCES21

CHAPTER 1: INTRODUCTION

Increased internationalization and global markets has driven companies to explore differences and similarities in the way how people are managed and handled more carefully. More and more international companies emphasizes the importance of knowledge about the impact of culture on business. (Ansoff, 2005 35-36). In the international company are activities and people spread over geographical boundaries. The company does it mean to create and maintain a sense of a organization of distance and space (Applbaum, ...