preview

INTERNATIONALISATION PROCESS in the specific case of IKEA

Better Essays

1. EXECUTIVE SUMMARY In this essay, we will examine the internationalisation process of IKEA, Swedish Company founded in 1943 and the world's lieder in supplying home furnishing at low price with imaginative styles and application facility. In addition, we will describe from the different frameworks that have sought explain the Internationalisation process, the factors that have taken this company to perform its international expansion. From to be a simple local shop in a small town in Sweden 60 year ago, to be an actual powerful multinational with more than 76.000 employees and shops in more than 43 countries. 2. INTRODUCTION The internationalisation process of the firm has been a subject, which has been motive of study for a number of …show more content…

3.1.1.3 Achievement at Home Ghauri (2000) explain that the achievements and confidence obtained at home could be decisive in the internationalisation of the firm. The rapidly growth in sales of IKEA in its own country thanks to its innovative new concept in furniture and its reinforcement with polish suppliers, during the 1950s and 1960s, gave to IKEA the option to consider in going further of Swedish borders. Thus, in 1963 was opened the first Store in Oslo capital of Norway. This first step was a guideline to continue the expansion process IKEA has started, and helped to strengthen the internal market in Sweden with the opening of the biggest store in Stockholm in 1965, and the second international store in Denmark in 1969. 3.1.2 THE ENVIRONMENTAL FACTORS 3.1.2.1 Unsolicited Proposal External offers or findings from different market research tend firms to think in match that external offer or the natural propose of the market and thus, incur in early stages of internationalisation. (Ghauri 2000). In IKEA, the Unsolicited Proposal came from many directions. Firstly, in 1952 the boycott by Swedish retailers to IKEA, obliged to IKEA to seek new sources of furniture. Second, the Swedish furniture market demand fall by the early 1970s. Third, IKEA had identified as we said before two big markets to

Get Access