Ikea Case Study

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IKEA case study 1. What are IKEA 's firm-specific advantages? Country-specific advantage?

Oversea investing is mainly due to that the transnational corporation has the firm-specific advantage, for example, the brand reputation, production tec., scale economy, marketing strategy, and so on. That is why when firm can’t gain big profits by exporting directly or patent authorization, foreign investment is more comparative within those firm-specific advantages. This firm-advantage is referring to intangible assets.
Country specific advantages for the firms can enhance the comparability. These comparative advantages provide the fundamental rational for the existence of international trade. The free trade between two countries results
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They have wide range of products from plants, living room furnishings, toys, frying pans and whole kitchens and so on. Anything will help the customers to build up furnishing.) IKEA also has diversity of style, so the products coordinate with wide function, the customers can easily find their ideal furniture or commodities.

* Location (country- specific advantages) → beneficial the marketing in Europe.
IKEA is funded in European-located Sweden. These country-specific advantages can make it relatively easily for the enterprise to spread their reputation in Europe. In addition, IKEA has assigned their employees to other place or new market in Europe since they have similar cultural background and language and so on. When they working together, they usually have similar working standard that enhance the efficiency along the project.

* Disassembled furniture
IKEA has the radical innovation and groundbreaking core concept of the firm. They offer the disassembled furniture which enables much large stock and inventory at every retailer, which means customers can actually possess the product immediately at the day of purchasing. Beyond that, the IKEA 's sales clerks at the stores can pay more attention on in-store displays and efficient- processing line but not assemble and reassemble the large furniture and products inventory.

2. What are the cultural factors that make expansion abroad in retailing difficult? What has made it possible in

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