Marketing Strategies For Entry Into China And North America

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Firms pursue an international strategy in order to take advantage of the larger market for potential consumers and buyers of products and services on a global basis, as compared to the limited markets available in the home countries of businesses. In this way, expansion into the international market presents companies with a large scope for growth opportunities (Hitt et al., 2011, p. 219). Firms are also better able to earn a larger gain from their investments due to the larger potential market. Firms are able to ramp up production and other capabilities so that they can achieve better economies of scale and make the same quality products and services more cheaply. There is also bigger scope for performance and for innovation, since a diversity of markets offers a wide range possible strategies for bringing exciting new products to market and attempting new management and business strategies. Strategies for entry into China and North America varied significantly due to many cultural and economic factors. The value proposition in Western nations is geared towards value-conscious consumers who desire a low price and moderate quality. In China products are more marketed toward relatively-affluent middle classes as Ikea seeks to establish its brand in China as aspirational and offering a Western-style design and lifestyle. Ikea also altered its products to better penetrate the Chinese middle class market: it reduced the size of some items to better fit apartment sizes

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