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Brand identity and communication strategies: how IKEA become a popular brand in China - Dissertation Example

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Brand identity and communication strategies: how IKEA become a popular brand in China

Entailed in the rapid economic progress and growth of China is the country’s great potential for investment opportunities (Lauffs and Tan 2001). With a population of 1.3 billion, a steadily rising income level, a solid economy and a widening middle class (Weber, Wang and Ying 2009), China’s strong position in the global economic market, both as a player and market, continue to be heralded as a great opportunity and a myriad of challenges (Li et al. 2006). The present research will look into the phenomenal popularity of IKEA in China and will analyse how IKEA, a foreign brand, has achieved such a phenomenal success in China. In fact, China’s furniture industry is considered as one of the strongest industry of the country. 1.1. Background of the Study The impact of globalisation is not limited only to the economic relationship of countries. Its influence and impact permeates all the structures of society (Watson 2004). China’s experience of monumental economic growth is directly attributed to the country’s transformation of its international trade policy (Yao 2006). ...
Together with the changes in the foreign economic trade policies of China, changes in the political, social, economic and demographics of China are also happening, highlighting the fact that the impact of globalisation is not solely manifested in the international trading relations of China, but it is also perceptible in other facets of her society. 1.1.1. Political Environment In 1949, China came under the rule of China’s Communist Party. During this period, the entire country was bombarded with the Maoist’s rhetoric of self-reliance and self-sufficiency (Fan 1995). At that time, self-reliance and self-sufficiency were enough to cover the basic material needs of the people. However, by 1970’s, high rate of poverty and starvation engulfed the country, pushing the reality that self-reliance and self-sufficiency were no longer adequate in meeting the material needs of majority of the people (Fan 1995). In the late 1970’s until 1997, Deng Xiaoping started to encourage a more foreign friendly international trade policy. China’s opening of her doors to international trade was undertaken gradually. It was a process propelled not by the demands from external factors, but from the internal reasons stemming from the people’s poverty and hunger (Fan 1995). In November 1999, China officially became a member of the World Trade Organisation (WTO). China’s membership came with tumultuous stories of violence and tyranny as evince by the Tiananmen Square incident in 1989. Nonetheless, despite the issues surrounding China’s accession to WTO, China was able to pull through and alleviate the poverty and hunger of millions of Chinese China’s membership to WTO increased the hope of many experts that the democratisation of China would commence. This was based ...Show more

Summary

Chapter 1 Introduction 1.0. Introduction Globalisation has opened a new economic interrelationship among nations across the globe (Soros 2002; Stiglizt 2009). It has minimised, if not totally removed, economic boundaries existing among nations, thereby, establishing freer movements of goods, services, culture, products, capital, and people (Suarez-Orozco and Qin-Hilliard 2004)…
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