its my college project describing 7 most important barriers to communicationFull description
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In the previous blog we saw about the effective communication and its importance where now let us have a clarification that how it hinders our communication.
women managers' career progression
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Marketing ManagementDeskripsi lengkap
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Descripción: Pricing
ikea
managementul pietelor internationale de arta . prezentarea mai multor piete de arta din lume.
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About ikeaFull description
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Only while sleeping one mak makes no mistak mistakes es Ingvar Kamprad
Cultural Barriers to Entry into International Markets - IKEA’ IKEA’ss Case Cas e Study St udy Chichi Natasha Wam Wambebe bebe Ewa Kochanowska Maria Blanco
Agenda Who What Where How
IKEA Barriers to entry Case studies Recommendations
Agenda Who What Where How
IKEA Barriers to entry Case studies Recommendations
History History & Timeline
1943 IKEA is founded
1951 IKEA publishes 1st catalog
1953 IKEA ‘s first showroom
1958
1963
2011 - Thailand
Annual sales (€ billions)
Sales worldwide North America 15%
Asia & Australia 6%
Europe 79%
Value curve 12 10 8 6 4 2 0
IKEA
Low-end retailers
High-end retailers
Barriers defined? Market
Most Common Barriers
Absolute cost advantage
Economies of scale
Customer loyalty
Firm’s concentration/size
Capital requirements
Customer switching cost
Distribution channels
Government policies
Distances to Successful Entry
Cultural Administrative Geographic Economic
Firm’s size Country risk Country openness
Porter’s Five-Forces Analysis Supplier Power
Buyer Power
3.1
Threat of Substitutes
3.1
3.5 Threat of new entrants
Rivalry
Complementors
3.0
3.1
3.1
Brand value
$7.3 billion, rose by 28% 10th on the list of TOP retail brands network of 1,300 suppliers in 53 countries
Cultural differences are a nuisance at best and often a disaster Prof. Geert Hofstede
Cultural Dimensions
Power Distance Index Individualism
Masculinity Uncertainty Avoidance Index Long-Term Orientation
Cultural Dimensions 120 100 80 60 40 20 0 Power Distance
Individualism US
Masculinity
Russia
Sweden
Uncertainity Avoidance China
Long-Term orientation
USA 1985 – 1st store in Philadelphia 2011 – 38th store in Centennial
Initial poor performance and slow start
Clothing storage ways
Result
Godis glass in the EU
Godis glass in the USA
10 cm high
16 cm high
23 cl
40 cl
Size matters
Measurements Standard EU:
140 x 200 cm vs.
152 x 202 cm 59 7/8”x 79”
Standard US queen
Language surprises for Anglophones Fukta
Jerker
Fartfull
Lyckhem
Families’ size and preferences
One doesn’t discuss taste, or do they?
70% Modern IKEA
vs. Traditional US taste
SOLUTIONS Turnaround
Adaptation
Customization
Revenues doubled over a four-year period US the 3rd biggest market
IKEA experienced similar obstacles worldwide
bureaucracy
“The unpredictable
character of administrative procedures in some regions”
Language – Köge
Swedish imperialism in Denmark
Lebanon
China from 1998 Misperception of IKEA as a luxury brand
Web site challenges
Low-focus on customer service concept misunderstood
Other Culture and Life Style Barriers
IKEA’s ideas to improve
its cultural sensitivity Learning as a driving force behind internationalization
Backpacker Journey Program for Co-workers
Customization of some IKEA products
Food items are replaced/changed/added
Products with inappropriate names are withdrawn quickly
Recommendations
cultural adjustment costs move along learning curve exploit previous experience
Invest more in Market Research
Be cheeky •
Be sensitive •
•
Educate about the Swedish design
Customize to habits (through local “detectives”) Consult with linguists and cultural studies specialist
Spread the IKEA spirit among new co-workers to ensure quality customer service
