IKEA entered China in a joint venture, this is a notable change than their usual commercialize entry to newfangled market, which was always franchising (Li, 2007). Although this is partly due to legal and political factors of the market, thither is another reason for this entry mode. That is this entry mode allows for much interaction with local customers and competitors, allowing IKEA greater responsiveness towards the China market.
The IKEA warehousing was firstly opened in Sweden since 1958. They had started to explore its European market by opening its first store outside Sweden in Norway in 1963, and Denmark in 1969. They had started exploring other European market since 1970s, such as Germany (1974) and Switzerland (1973). However, the company has not far shown much of its nominal head in those developing countries. (Accessed on 28 Dec 2012, hypertext transfer protocol://inter.ikea.
com/en/about-us/milestones/)
IKEA IKEA primarily focused on company-owned, larger-scale outlets, they are only if franchising those areas with relatively small and where uncertainty may exist as to the concept of IKEA, such as Hong Kong and United Arab Emirates.
IKEA Group, a franchisee of screen IKEA Systems BV, entered China in 1998 when it opened its first store in Shanghai. IKEAs mainland China stores belong to the IKEA Group and 2 of the stores was opened through the form of joint ventures, which is mainly due to Chinese regulations, which need all foreign retailers to have a local partner. either other newly opened stores are operated as completely owned stores by IKEA Group (IKEA Hong Kong and IKEA Taiwan are intermit franchisees.) (Accessed on 28 Dec 2012, http://www.chinadaily.com.cn/opinion/2006-03/03/content_530640.htm)If you indispensableness to get a full essay, order it on our website: Ordercustompaper.com
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