Case Study Marketing Management 
Question 1
Why did IKEA decide to enter the Malaysian market through franchising? Do you agree with this strategy? What could have been alternative strategies?
IKEA is one of the top sellers in furniture goods around the world. IKEA expanded to Malaysia and approaches high-risk market by franchising. IKEA used a conservative policy to globalize its business. IKEA never enters a new potential market by opening a retail outlet. IKEA sets up a supplier link with host country to reduce approach in which local suppliers provide valuable inputs. IKEA has concentrated its international expansion in Asia mainly through company-owned subsidiaries.
IKEA entered the Malaysian market as part of its expansion drive across Asia. Examples of Asia country that have IKEA franchise business are Malaysia, Taipei, Singapore and Hong Kong. Franchising has been extensively utilized in expanding to other areas of the world.
Franchising help IKEA to achieve rapid national growth and increases the national market share, upgrade its service levels and making it able to allocate funds on their own. In franchising, the franchisees have to carry basic item but have the freedom to design the rest of the product in order to mix and meet the local needs. I agree with this strategy because by franchising, IKEA can become the suppliers that provide different inputs that needed by worldwide country especially in Asia. For example, when we want to purchase furniture from IKEA, we can go to the nearest store without travel all the way to their main company that located overseas. IKEA entered Malaysia market by franchising has bring us a more convenient shopping experience with low prices.
Franchising is an international expansion through company-owned subsidiaries. Therefore, it is more organize and standard. IKEA can focus on producing higher quality furniture and do more research on expanding its business to other country. Apart from that, IKEA obtains more time on training
Why did IKEA decide to enter the Malaysian market through franchising? Do you agree with this strategy? What could have been alternative strategies?
IKEA is one of the top sellers in furniture goods around the world. IKEA expanded to Malaysia and approaches high-risk market by franchising. IKEA used a conservative policy to globalize its business. IKEA never enters a new potential market by opening a retail outlet. IKEA sets up a supplier link with host country to reduce approach in which local suppliers provide valuable inputs. IKEA has concentrated its international expansion in Asia mainly through company-owned subsidiaries.
IKEA entered the Malaysian market as part of its expansion drive across Asia. Examples of Asia country that have IKEA franchise business are Malaysia, Taipei, Singapore and Hong Kong. Franchising has been extensively utilized in expanding to other areas of the world.
Franchising help IKEA to achieve rapid national growth and increases the national market share, upgrade its service levels and making it able to allocate funds on their own. In franchising, the franchisees have to carry basic item but have the freedom to design the rest of the product in order to mix and meet the local needs. I agree with this strategy because by franchising, IKEA can become the suppliers that provide different inputs that needed by worldwide country especially in Asia. For example, when we want to purchase furniture from IKEA, we can go to the nearest store without travel all the way to their main company that located overseas. IKEA entered Malaysia market by franchising has bring us a more convenient shopping experience with low prices.
Franchising is an international expansion through company-owned subsidiaries. Therefore, it is more organize and standard. IKEA can focus on producing higher quality furniture and do more research on expanding its business to other country. Apart from that, IKEA obtains more time on training