Browse Case Studies by
Case Studies in
- Corporate Governance
- Corporate Social Responsibility
- Economics
- Enterpreneurship
- Finance, Accounting & Control
- Leadership
- Marketing
- Organisational Behaviour / HRM
- Social Entrepreneurship
- Strategy
- All Case Studies »
Concept wise Case Studies
- Market Entry Strategies - Vol. I
- Retailing Industry
- MNCs in China - Vol. I
- MNCs in China - Vol. II
- Retailing Industry - Vol. II
- » All Concept wise Cases
Industry wise Case Studies
- Fashion Retailing
- Retailing
- Media and entertainment
- Telecommunications Equipments and services
- Home Improvement Retailing
- » All Industry wise Cases
Region wise Case Studies
Market Entry Strategies Case Study
Case Title:
IKEA in Japan: The Market Re-entry Strategies
Publication Year : 2006
Authors: Rupesh, Sumit Kumar Chaudhuri
Industry: Home Furnishings & Housewares Retail
Region:USA
Case Code: MES0043
Teaching Note: Available
Structured Assignment: Available
OR
Abstract:
In April 2006, IKEA, the world's largest furniture retailer, forayed into Japan by opening its second-largest store outside Sweden. The opening of the store marked the re-entry of IKEA into the Japanese market after an unsuccessful 12 years stint between 1974 and 1986. Although the company has planned to 'act local' by customising its offerings according to Japanese preferences, it still expects to face several challenges from the Japanese customers who are known to be inconsistent and unpredictable, and have forced many a foreign retailer to exit from Japan.
Pedagogical Objectives:
- To discuss the need for global companies to understand consumer needs and preferences in each of their markets and adapt their offerings accordingly
- To understand the dynamics of the Japanese retail and home improvement market
- To analyse the reasons behind IKEA's failure in Japan in its first entry (1974-1986) and the factors that encouraged it to re-enter the Japanese market with the ensuing challenges
- To debate whether IKEA, which is known for its standard offerings across the globe at the lowest price, would be able to win fastidious Japanese customers through customised offerings.
Keywords : Japanese retail market; Japanese home improvement market; IKEA's first time failure in Japan; Consumer behaviour in Japan; Foreign retailers in Japan; Japanese furniture retailers; Japanese real estate market; IKEA as a cult brand; Low price strategies of IKEA; IKEA's growth strategies in Japan; Market Entry Strategies Case Study; Japan's economic growth
Contents :
Japan’s Economic Growth and the Home Improvement Market
Business Cycle and Unemployment in Japan
Global Commercial Real Estate Market
Global Office Markets
How IKEA Creates the Low Price
The IKEA Brand
IKEA’s Initial Foray into Japan: The Strategic Missteps
IKEA’s Re-entry into Japan:AStrategy Makeover?
IKEA’s Pre-launch Promotion in Japan
IKEAFunabashi Store Information
