IKEA: The Japanese Misadventure and Successful Re-entry


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Case Details:

Case Code : BSTR289
Case Length : 18 Pages
Period : 2002-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : IKEA
Industry : Furniture Retail
Countries : Japan

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Excerpts Contd...

Localization Strategies

IKEA maintained some level of standardization. The products, and their quality were standardized across the world. The stores around the world looked similar, and all the furniture had to be assembled by the customers.

IKEA had same culture all across its stores. IKEA chose to maintain some level of standardization as it wanted to give its consumers a Swedish experience and it believed that excessive localization would not allow it to maintain its exclusivity and would become just one of several such stores in the country where it operated...

Promotional Strategies

Before opening new stores, IKEA adopted a buzz marketing campaign, in the radius of 15 kilometers of the new stores. For its first store, IKEA converted a street in the main shopping district of Tokyo into an open air exhibition. IKEA displayed fourteen rooms, each of the size 4.5 tatami or 6 tatami...

What Lies Ahead

For the year 2008, IKEA planned to open three more stores at Kobe, Osaka, and Saitama and also open a distribution center at Yatomi Aichi.

The distribution center, located in central Japan, was chosen as IKEA had plans of expanding its stores from Kanto to Kansai.

IKEA planned to open around 12 stores by 2011 in Japan. In the long term, it planned to open 46 stores in the country...

Exhibits

Exhibit I: IKEA - International Expansion
Exhibit II: IKEA'S Ownership Structure
Exhibit III: An Indicative List of Names of IKEA's Products
Exhibit IV: Housing in Japan and Purchasing Habits of Japanese
Exhibit V: Image of How to Shop at IKEA

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