The case study observes the internationaltactical design of Ikea. The assessmentgives an introduction to the history of Ikea in Scandinavia and the importantdistinction from a rival furniture seller. The interesting element is the internationalization of a skillfulseller after the competitive benefit and edge had been uniformed. The strategic significance of stepping in different areas and regions is detailed i.e. Germany, Canada, and the US. The primary aspect pertaining to the case study is to recognize how Ikea was able to transform the obstructions in its way of entry in different regions to its own advantage and what were the pressing setbacks and issues met in the way.
1. What are IKEA's firm specific advantages? Country specific advantages?
2. What are the cultural factors which make expansion abroad in retailing difficult? What has made it possible in IKEA's case?
3. Describe how IKEA'S expansion has re-energized mature markets around the world and changed the competitive situation.
4. How does the TV advertising campaign initiated by IKEA overcome the entry barrier of high advertising expenditures?
5. Should IKEA expand further in the United States or focus on other countries?