IKEA: The Japanese Misadventure and Successful Re-entry
Case Code: BSTR289 Case Length: 18 Pages Period: 2002-2008 Pub Date: 2008 Teaching Note: Not Available |
Price: Rs.300 Organization: IKEA Industry: Retail Countries: Japan Themes: International Business, Globalization Business |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case discusses in detail Sweden-based furniture retailer, IKEA's re-entry into the Japanese market and the strategies it adopted on its re-entry. IKEA first entered Japan in 1974 through a joint venture with a Japanese company as a part of its plans to expand globally. It exited from the country in 1986, after failing to develop a significant presence. IKEA decided to re-enter the market in 2002, and the second time around, it conducted a thorough study of the markets and visited several Japanese homes to understand their requirements better. IKEA then formulated its strategy for the Japanese market based on 'small space living', and brought in products that were suitable to the Japanese -storage boxes, sofa beds, two-seater sofas, etc.
As of 2008, IKEA operated through three stores in the country. The case discusses in detail, store and employee management, localization, and promotional strategies adopted by IKEA in Japan, and concludes with a discussion on possible challenges it could face in the country.
Issues
The case is structured to achieve the following teaching objectives
- Understand the furniture retail market in Japan
- Understand the reasons for IKEA's exit from Japan
- Study the factors that shaped IKEA's re-entry into Japan
- Analyze some of IKEA's strategies in Japan
Contents
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IKEA Gives Japan another Try
Background Note
The Japanese Misadventure
IKEA Japan: The Second Coming
Opening New Stores
Store and Employee Management
Localization Strategies
Promotional Strategies
What Lies Ahead
Exhibits
Keywords
Globalization, Business environment, Localization, Store management, Product design, Promotion, Furniture industry, Furniture retail, Privately held business, Family owned company, IKEA, Japan
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