Marketing Ch-9

3. What strategic alternatives would you suggest IKEA employ to further penetrate the U.S. market?

In choosing your initial geographic market, you should focus your attention on which of the following?

Government Research clearly acknowledges that skin care regiments are important for overall skin care approaches as follows:

16. Which of the following can induce a firm to expand into the international arena?

1. High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy: A. global B. multidomestic C. transnational D. overall cost leadership 2. Foreign direct investment includes the following form of entry strategy: A. licensing B. franchising C. joint ventures D. exporting 3. According to Michael Porter, firms that have experienced intense domestic competition are A. unlikely to have the time or resources to compete abroad. B. most likely to design strategies aimed primarily at the domestic market. C. more likely to design strategies and structures that allow them to successfully compete abroad. D. more likely to demand protection from their governments.

Consider the ski resort satisfaction data we used in class (“satisfaction.sav” in Week 7 folder). This is data based on a survey of 500 users of a ski resort. In class we did part of the analysis. In this question you will be asked to redo some of the analysis and complete the rest. For part a), b) and c), write down your null and alternative hypotheses and then discuss the hypothesis testing results based on SPSS output. Please show your SPSS output for part a), b), and c).

3. The marketing strategy of company is not so convincing because they can extend their product range with good

The need for a solid market entry decision is an integral part of a global market entry strategy. Entry decisions heavily influence the firm’s other marketing-mix decisions. Company can enter International Market with many ways, some of them are as follows:

In IKEA’s history two different modes of entry were used. Both were met with big success and allowed IKEA to enter new markets very easily, and in a secure way.

IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international

As noted above, the German economy is quite substantial and highly productive, on an absolute as well as a per-capita basis (Export.gov, 2011). This suggests that the market for wine and cheese products, which are fairly common and essentially staples to many German diets, should be quite sustainable (Bouckley, 2011; Perini, 2010). The strong economy combined with the strong demand for these products means a sizeable and lasting market is in existence, and though Germany produces both cheese and wine the markets are not especially consolidated or saturated (Perini, 2010; Bouckley, 2011). All of these are good for this endeavor.

3. Did it surprise you to learn that both a developed country ( the United States) and also emerging economies (i.e. China and Russia) are the fastest growing international markets for IKEA? Does this fact pose any challenges in the way IKEA ought to compete across the globe? Why or why not?

For firms seeking to engage in international business, government intervention may increase both the risks and costs they undergo. With liberalised trade, firms

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

• In relation to the Eclectic paradigm, companies that have low levels of ownership advantages either do not enter foreign markets. If the company and its products are equipped with ownership advantage and internalization advantage, they enter through low-risk modes such as exporting.