BACHELOR DEGREE PROJECT
Strategies Adopted in the International Market
The case of IKEA in France
Bachelor Degree Project in Business Administration 15 ECTS Spring term 2007 Authors: Damien BADIER and Carole ROUSSET Supervisor: Desalegn ABRAHA Examiner: Marianne KULLENWALL
Strategies adopted in the International Market The case of IKEA in France
This thesis is submitted by Damien Badier and Carole Rousset to University of Skövde for the Bachelor Degree in Business administration, in the School of Technology and Society.
We certify that all materials in this thesis which is not our own work has been identified and that no material is included for which a degree has previous been conferred on us.
This Bachelor degree thesis deals with the strategies that IKEA has adopted in France since its establishment up to now. It is essentially based on interview with the person responsible for the public relations of IKEA France. But, other sources were used concerning our empirical findings: IKEA’s brochures, surveys from researchers… The purpose of the thesis is to explain and illustrate how a company succeeded to establish abroad, by applying a domestic concept. This issue is of importance because it provides information for the reader who would like to know how a company can be export all over the world by adapting its policy to the local specificities. It identifies and gives explanations about the marketing strategies implemented to export the IKEA concept to the French market.
The research was conducted using the case study method. It is based on primary and secondary data. Secondary data collected from IKEA´s brochures and survey research results and primary data collected through interviews with the person responsible for the public relations of IKEA France. The applied theoretical model is based upon the concepts of standardization and adaptation and also the SWOT analysis that are discussed in the theoretical framework part of our thesis.
The results of the research show that, IKEA prefers standardization to adaptation: it sells, with some exceptions, the same products in its stores. But, about the place of establishment of the stores in France, Ikea was forced to adapt to the sites and especially to the ways of life of the inhabitants. The distribution varies and cultural adaptation too. As IKEA claims to standardize its products to people, the communication is important to make change people attitudes and style of interior for example. It is necessary to show people, who think that Ikea is not for them, that Ikea is not what they think. So, the last section of our thesis is devoted to the communication strategy. The advertising execution is clearly integrated to the IKEA strategy.
TABLE OF CONTENTS
Page ABSTRACT _______________________________________________________ 3 TABLE OF CONTENTS ______________________________________________ 4 1. INTRODUCTION _________________________________________________ 6 1.1. Background__________________________________________________________________________ 6 1.2. Problem discussion____________________________________________________________________ 7 1.3. Purpose _____________________________________________________________________________ 7 1.4. Limitations __________________________________________________________________________ 8
2. METHODOLOGY _________________________________________________ 8 2.1. Research Methods ____________________________________________________________________ 8 2.1.1. Induction and deduction _____________________________________________________________ 8 2.1.2. Explorative, descriptive and causal research _____________________________________________ 8 2.2. Quantitative and qualitative research ____________________________________________________ 9 2.2.1. Quantitative research methods...