Ikea in Egypt

Topics: Egypt, Labour movement, Egyptian Arabic Pages: 3 (644 words) Published: June 11, 2011
IKEA in Egypt

I.Country Specific Research

1.General Business

Egypt, Arab Rep. is ranked 18 overall for Starting a Business (cia.gov),

Egypt is facing a transformational economic reform due to its last political revolutions that took place last March. It is facing a large labor movement, From revolution to institutions(3), Centre of Trade Union and Workers Services (CTUWS) formed as independent entities serving the labour movement: The organization provides legal support, financial resources, and training to labour organizers nationwide. They have no political affiliations, though their demands — the end of the Mubarak regime and a legitimate shift towards democracy — are inherently political. “The regime hasn’t changed,” was the consensus. One organizer elaborated: “The regime is much more than man. We still have a lot of work to do.”

3.Business Norms

a.Egypt has failed to create a healthy and competitive environment for business development b.Economic reform lacks popular support in Egypt
c.The majority of the private sector and civil society is excluded from the debate over Egypt’s economic reform strategy

4.Industry Specfic Business
5.Value Chain: Distribution Channels, Marketing, HR, Operations, Raw Materials, Existing Facilities

6.Competitors (i.e. is Ikea 1st or 2nd mover?)


7.Partners (Alliances, Acquistion, JV?)
Alliance (Alfuttem) http://www.gulfbase.com/site/interface/arabic/NewsArchiveDetails.aspx?cntr=0&n=118510 http://www.ameinfo.com/260141.html
9.Holfstedt: Differences in cultures

10.Culture/Religion/Norms/Languages in Detail
11.Muslim (mostly Sunni) 90%, Coptic 9%, other Christian 1%
Language: Arabic (official), English and French widely understood by educated classes

Reform stage?

12.Regional differences

13.Social classes, different incomes etc..
Hofstad :
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