Ikea in Nigeria

1187 Words Mar 19th, 2013 5 Pages
IKEA in Nigeria
Nasser Mardini
Virginia International University
Global Sourcing and Logistics - MBA 628
September 15, 2012
Dr. Stephen Onu

Company history

IKEA was founded in 1943by Ingvar Kamprad aged 17 in a small farming village in Sweden. The name IKEA was formed from the founder’s initials I.K. plus the first letters of Elmtaryd and Agunnaryd, the farm and village where Kamprad grew up. Originally IKEA sold everything from pens and wallets to picture frame, watched and even ladies stockings.

IKEA headquarters are located in Delft, Netherlands, as of August 2011, there are 287 IKEA stores in more than 38 countries. IKEA group has expanded globally to become a global retail brand with over 130,000 co-workers in 38 countries
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* Real GDP growth rate (2011 est.): 6.9%. * Per capita GDP (2010): $1,224. * Inflation (2011 est.): 10.8%. * Natural resources: Oil and natural gas, tin, columbite, iron ore, coal, limestone, lead, zinc. * Agriculture (40% of GDP): Products--cocoa, palm oil, yams, cassava, sorghum, millet, corn, rice, livestock, groundnuts, cotton. * Industry: Types--textiles, cement, food products, footwear, metal products, lumber, beer, detergents, car assembly. * Trade (2011 est.): Exports--$101.1 billion: petroleum and petroleum products (99%); agricultural products (cocoa, rubber, oil, nuts); manufactured goods. Partners--United States (37.4%); India (10.5%); Brazil (7.8%); Spain (6.9%). Imports--$67.36 billion: machinery; chemicals; transport equipment; manufactured goods; agricultural products. * Foreign direct investment (FDI, 2010): $6.1 billion. * Currency: Naira (157.5 Naira = U.S. $1 as of April 19, 2012). * Unemployment rate has been increasing with a high of 23.9% in December, 2011.

IKEA’s foreign market entry IKEA is known for its various foreign market entry strategies depending on the region, the political factors and the degree of competition. One of the successful international strategies IKEA have been implementing to enter foreign market is franchising; according to franchising.com,

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