International Business

CASE STUDY

The case discusses about Sweden based IKEA’s globalization strategies and its foray in the Chinese furniture market. The basic assumption behind IKEA’s global strategy was ‘onedesignsuitsall,’ which meant that the company did not adapt to the local markets. In China IKEA was forced to change some of the elements of its global strategy in the culturally diverse Chinese market.

It highlights the importance of striking a balance between the implementation of global polices and the need for higher degree of localization for IKEA to be successful in markets like China. The interrelationship between IKEA’s culture, structure, strategy and its responsiveness to the needs of local markets also matter.

Answer the following question.

Q1. Explain the need for IKEA to strike a balance between globalization (integration) and national responsiveness (differentiation) in China