IKEA in the Middle East

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IKEA in the Middle East
May 2013
Table of contents

Executive summary
Introduction
Purpose
Scope
Method
Findings
IKEA’s Marketing Strategy
Reforms
Discussion / Conclusion
IKEA and the Future of the Middle East
References
Executive summary
In 1995, IKEA opened their first store in the Middle East in what was called the retail hub Deira. This came at a time when the UAE was at the start of their development plans for Dubai. In terms of economics the UAE was on the way up in the building of the world famous Palm Jumeirah making the country an attractive investment for the group. The success of IKEA in the Middle East hinged on the way in which they understood the marketplace i.e. brand protection, the regions trade regulations and the stability of government. As an example IKEA did fail when they arrived in the Japanese marketplace by not understanding the trade policies and in Russia by not having clear understanding of the cultural differences. Introduction

Purpose
The purpose of this report is to prepare understand the concepts and techniques used by IKEA to enter the emerging markets of the Middle East. Scope
While investigating IKEA’s concepts and techniques of entering the Middle East market this paper will relate findings to methods and research studied. Method
The information used in this report was collected through academic journals. Findings
IKEA’s Marketing Strategy
In 2006 IKEA reneged on a USD$300 million plan to open more stares throughout the GCC (Gulf Co-Operation Council consisting of Kuwait, Qatar, Bahrain, Saudi Arabia, Oman and the United Arab Emirates). As the GCC released a plan to only allow foreign ownership of international organisation at a rate of 49% yet 100% in freezones however trade must be to local companies from these freezones. A simular incident happened in 2009 when the Indian Government did the same thing by tightening ownership laws. The design of the their iconic products, the way in...
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