International Marketing Strategy
BA (Hons) Marketing – 3rd year
Mathieu Chomarat: 06110827 Portobello College Year 2006-2007
International Marketing Strategy
Assignment 2: Ikea Case Study
Lecturer: Carmel Gernon Room: F6
Table of Contents
A Brief Introduction to the essay: 1
Macro-environment of Ikea in Brazil: 1
Politic and legal environment: 1
Economical environment: 2
Social environment: 3
Technological environment: 4
Environmental factors: 4
Market strategy entries: 4
Wholly owned stores: 4
Joint venture: 5
Strategy recommended: franchising 6
Success factors in Brazil 7
Know how to attract new customers 7
Be able to sell good quality products at a low price 7
Adapt the experience in the retailing to a new market 8
Understand the reasons that make Ingvar Kamprad reluctant to enter a new market: 8
Bibligraphy 9
Appendix 1: Brazil maps 10
Appendix 2: Diary 11
Number of words: 3,324
A Brief Introduction to the essay:
With 237 stores around the world and a turnover of € 17.6 billion, the Swedish company Ikea is the world leader in home furnishings[ Ikea’s Fact and Figures 2006, from Ikea’s website at http://franchisor.ikea.com/] thanks to a DIY concept that enables them to sell well designed good quality products at low prices.
The Ikea Group plans to further their international expansion into the South American Market. Brazil is the largest country in South America and fifth largest country in the world after Russian, Canada, China and USA. It apparently represents the most attractive country to target. The following analysis aims to highlight threats and opportunities regarding to the Brazilian market, as well as providing solutions and recommendations for a successful implantation in this area.
Macro-environment of Ikea in Brazil:
Politic and legal environment:
Even if the political stability in South America isn’t as secure as countries from the European
Mathieu Chomarat: 06110827 Portobello College Year 2006-2007
International Marketing Strategy
Assignment 2: Ikea Case Study
Lecturer: Carmel Gernon Room: F6
Table of Contents
A Brief Introduction to the essay: 1
Macro-environment of Ikea in Brazil: 1
Politic and legal environment: 1
Economical environment: 2
Social environment: 3
Technological environment: 4
Environmental factors: 4
Market strategy entries: 4
Wholly owned stores: 4
Joint venture: 5
Strategy recommended: franchising 6
Success factors in Brazil 7
Know how to attract new customers 7
Be able to sell good quality products at a low price 7
Adapt the experience in the retailing to a new market 8
Understand the reasons that make Ingvar Kamprad reluctant to enter a new market: 8
Bibligraphy 9
Appendix 1: Brazil maps 10
Appendix 2: Diary 11
Number of words: 3,324
A Brief Introduction to the essay:
With 237 stores around the world and a turnover of € 17.6 billion, the Swedish company Ikea is the world leader in home furnishings[ Ikea’s Fact and Figures 2006, from Ikea’s website at http://franchisor.ikea.com/] thanks to a DIY concept that enables them to sell well designed good quality products at low prices.
The Ikea Group plans to further their international expansion into the South American Market. Brazil is the largest country in South America and fifth largest country in the world after Russian, Canada, China and USA. It apparently represents the most attractive country to target. The following analysis aims to highlight threats and opportunities regarding to the Brazilian market, as well as providing solutions and recommendations for a successful implantation in this area.
Macro-environment of Ikea in Brazil:
Politic and legal environment:
Even if the political stability in South America isn’t as secure as countries from the European
Bibliography: Brandchannel website from http://www.brandchannel.com/start1.asp?fa_id=352, 2006 “Brazil considers linguistic barricade” by Andrew Downie, The Christian Science Monitor, newspaper on March 22, 2006 Durcroire (Belgian credit insurance company) website, http://www.ducroiredelcredere.be, information from the 02/11/2006 Ikea’s Fact and Figures 2006, from Ikea’s website at http://franchisor.ikea.com/ Information from the USA government, http://www.state.gov/r/pa/ei/bgn/35640.htm#econ, 2005 International Monetary Fund, World Economic Outlook Database for the year 2005, September 2006 Jean-Pierce Jeannet & H.David Hennessy, (2004), Global Marketing Strategies, 6th Edition Warren J. Keegan & Mark C. Green, 2005, Global Marketing, 4th Edition, Prentice Hall, page 299 Wikipedia, 2007