Explain the need for IKEA to strike a balance between globalization (integration) and national responsiveness (differentiation) in China
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International Business
Case Studies
CASE STUDY (20 Marks)
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
CASE STUDY (20 Marks)
It's tough to be the little guy,
especially when one of the big guys becomes your direct competition. But at
Hangers Cleaners, an offbeat image and good customer service helped them pull
through when P&G opened eco friendly dry cleaners in the same town. Hangers
differentiated itself through van delivery service, funny t shirts and hangers,
as well as social networking. The company also spent time connecting with the
community by partnering with local businesses and charities. Instead of out
pricing or outspending P&G, Hangers embraced its personality and adopted a
culture of excellent service that customers found value in. As a result,
Hangers has experienced growth while other local dry cleaners have reported
flat or declining revenues.
Answer
the following question.
Q1.
How the Hangers Cleaners survived despite competition from big competitor?
Q2.
Give an overview of the case..
CASE STUDY (20 Marks)
The case discusses the entry of the
Germany based electronics retailer Media Market into China and its subsequent
exit from the country. Media Market entered China in 2010 after performing a
feasibility study. Media Market opened a huge store in Shanghai in November
2010 to mark its entry into China. The store, spread over five floors,
displayed and sold a wide range of electronic appliances of various brands. The
products came with price tags attached. The store gained huge popularity and
experienced high traffic. In China, electronic retail stores usually consisted
of vendor representatives who promoted their own products. Customers could
bargain and get the product at a lower price. This led to a highly chaotic
environment in the stores. Media Market refrained from using this model and
positioned itself differently from the local vendors. It did away with the
vendor representatives and had its own salespeople manning the stores. The
salespeople did not interfere with the customers and provided assistance only
when askedfor. To keep up the momentum, Media Market planned to open a second
store in Shanghai. It inaugurated this store just a couple of days after the
exit of US based electronics retailer Best Buy from China. Though Media
Market’s first two stores were successful, it could not sustain the momentum.
It could not open stores as rapidly as it planned to. Though customers
appreciated the modern shopping experience at Media Market, they still
preferred to shop at local stores as they could bargain and buy products at a
lower price. Faced with high competition and high costs of operations, Media
Market decided to exit the Chinese market in March 2013.
Answer
the following question.
Q1.
Discuss the nature of problems faced by retailers like Media Market in emerging
markets like China.
Q2.
Analyze Media Market’s pre entry and entry strategies.
Q3.
Examine the reasons that prompted Media Market to exit the market.
Q4.
Analyze the retail industry in China.
CASE STUDY (20 Marks)
The case looks at Germany based
automobile manufacturer Audi's successful run of 25 years in China, and some of
the factors that were responsible for its success. Audi entered China in 1986
through a joint venture with a Chinese company First Automobile Works Group
Corp (FAW). From 1988, it started manufacturing and selling cars in China. Over
the years, the company introduced several of its popular models in China and
also made changes to its vehicles to suit the needs of Chinese customers. The
company developed a huge distribution network in the country, which also
contributed to its success. By 2011, China had become Audi's largest market.
Audi gained popularity in the country as a vehicle for bureaucrats and
government servants. But the changes in government policy that encouraged the
use of vehicles manufactured by the local manufacturers to give a boost to the
local automobile industry could impact Audi adversely. Over the years, the use
of Audi's cars by bureaucrats gave it the image of a vehicle for the wealthy
and the old. Audi therefore needed to revamp its image in order to appeal to
the youth and youngsters. Though Audi took several steps in this direction, it
remains to be seen whether it will be able to appeal to this segment, and
continue its successful run in China.
Answer
the following question.
Q1.
Discuss the strategies followed by companies from developed countries when they
enter developing countries and emerging economies.
Q2.
Explain the issues and challenges confronted by established companies in the
face of changing market conditions and customer demands.
Q3.
Analyze how political and bureaucratic decisions can influence the strategies
of companies.
Q4.
Give an overview of the case.
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Project Report and Thesis contact
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ARAVIND – 09901366442 – 09902787224
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