Entry Strategy of IKEA into Brazil - Essay Example

Only on StudentShare

Extract of sample
Entry Strategy of IKEA into Brazil

IKEA through its various marketing strategies has created a steady demand for its products. The company also prides itself in being innovative and has managed to get customers to accept products that they would not normally accept through design changes. In the initial stages IKEA expanded its business into new markets outside of Sweden including Norway by direct entry and by acquiring other businesses. However, over the years IKEA has been focusing on expansion of its business through franchising. IKEA now operates over 325 stores which are located in 35 countries. An analysis of the Brazilian market indicates that it is a very promising environment for IKEAs products. The standard of living of working class individuals have improved and this has increased their demand for various products including home furnishings. Upper and middle class Brazilians have high disposable income and are willing to spend on high quality brand name products and so it would be good if IKEA offer goods for different segments of the market instead of focusing on just low priced products. Additionally, research indicates that 59% of Brazilians have a preference for foreign brands over home brands. However, there are certain obstacles in the political and legal environment that may negatively impact the success of IKEAs business. Furthermore, the currency of Brazil is overvalued. ...
Download paper

Summary

To: The Director of International Marketing - BCG From: Consultant Subject: IKEAs Entry into Brazil Date: Report Executive Summary According to Inter IKEA Systems B.V. (n.d.), IKEA was established in 1943 by Ingvar Kamprad as a mail order business in Sweden…
Author : mgorczany

Related Essays

The impact of firm resources and host country specific factors on international entry mode strategy
The paper tells that in an era of expanding globalization, tastes and preferences of people in different countries and cultures have converged, due to many factors most prominent of which is the increased flow of electronic communications by which people across borders are able to exchange information and socially interact with one another. As a result, the fashion clothing industry has been rapidly expanding across the globe, with the development of brand loyalty and affinity playing a large part in the economic success of certain brands. Fashion clothing companies, in an effort to penetrate...
55 pages (13805 words) Dissertation
IKEA Analysis
Retaining competitive advantage is inevitable for firms to ensure profitability. This can be achieved by implementing effective management strategies and processes that allow them to conduct a thorough internal analysis of their businesses, such as benchmarking, value chain analysis etc., to name a few. For the purpose of this paper, benchmarking as a method of internal analysis is used and applied on IKEA. The process of benchmarking is of vital significance for organizations today, since it affords them the ability to compare their performance with that of their rivals or similar processes...
10 pages (2510 words) Essay
IKEA and India
During 1960s-1970s, it became the prominent furniture manufacturer in Sweden. In the 1980’s, IKEA expands dramatically into new markets such as USA, Italy, France and the UK (Ikea, 2012). At present, Ikea has operations in more than 40 countries in the world. However, it has no business units in India at present even though India is one of the most rapidly developing economies in the world. Many people believe that India may become a superpower both in terms of economic growth as well as military power in near future itself. Moreover, it is often said that global wealth is currently shifting...
16 pages (4016 words) Assignment
International marketing entry strategy for Cow & Gate in China
Recognizing that China has huge potential for baby food, C&G aims to enter and market its products in China. An evaluation of the business environment and market potential would help decide international marketing for China. 2.0 PEST Analysis of China 2.1 Political China’s political and social landscape is stable because of decades or opening up of the economy and the reforms that have been brought about. The Communist Party of China (CPC) has improved governance according to the needs of the people. Political stability has been achieved as people were invited to participate in politics...
12 pages (3012 words) Essay
International Marketing Strategy (Entry Mode) for Chinese Household Electric Appliance Enterprises into the UK Market
Add into the mix a market on another continent, in a different language group, various political system, and a changing business culture and the process of successfully navigating the waters can be difficult indeed. In order for international companies to stay successful in today’s quickly changing and increasingly global business community, it is important to constantly be innovating and looking for viable expansion opportunities when they present themselves. The People’s Republic of China has countless small and medium sized companies that are well situated to move into global markets....
50 pages (12550 words) Dissertation
Strategy Context Report : IKEA
The company can yield high amount of profitability along with enhancing its business model through the varied recommendations given by the author of the study. The main motive of the strategic group and competitor analysis would be to identify the company’s current market and strategic position in the market. The author of the study has focused on the current strategic issues faced by the company with respect to the current situation of the furniture industry. Thus, IKEA could not only enhance its business model but also formulate varied strategies to improve the existing business systems....
12 pages (3012 words) Essay
Ikea
According to a research made in 2008, the company has been considered as the largest furniture retailing firm in the world. Overtime, proportions of discretionary spending of consumers in most economies have increased with rise in per capita. Such changes in composition of consumers’ expenditure have helped to enhance revenues of comfort product producing companies like, IKEA (Peng, 2010). Even so, it is also true that since the global financial crisis, aggregate income generated from the retail sector in the international market has fallen due to recessionary trails in economies. A very...
20 pages (5020 words) Research Paper
Got a tricky question? Receive an answer from students like you! Try us!