宜家的业务是从家庭销售开始发展,然后变成国际性的。原来,宜家只卖小饰品和家居饰品的产品在其国内,瑞典。直到1948,宜家才开始设计自己的家具产品,并以低价格高质量出售。企业发展的过程是从国内销售的产品,打开Almhult镇一家零售店,瑞典,然后制定一个大的零售店在挪威。2012年,宜家委员会计划在市场调查后,在印度国家发展全资子公司。
目前,宜家的商店大多数是全资和英格卡控股管理。全资子公司战略说明商店的运营,大多数管理,其家具的设计和制造是由英格卡控股监督。的情况下,宜家一直盯着印度的零售市场,现在计划投资亿在印度建立一个全资子公司。
IKEA is an international home furniture company that selling the wide ranges of well-designed and functional products which packed in form of ready-to-assemble. According to IKEA (2012), its business is founded in 1943 by 17 years old Ingvar Kamprad in Sweden. The headquarter company of IKEA is placed in Delft, Netherlands. With the time turned, furniture retailer IKEA becomes one of successful companies around the world and has ability to take advantage of globalization. Therefore, now IKEA has 325 stores in 38 countries in which 287 stores in 26 countries is wholly owned INGKA Holding (non-for-profit corporation) and the remaining 38 stores are run by franchisees which under Dutch company (for-profit corporation) (n.a, 2012). INGKA Holding is parent company of Dutch company. The largest stores around the world are placed in China, German and Sweden (IKEA, 2012). The IKEA business is developed starting with home selling and then turn to become international nowadays. Originally, IKEA only sold small home accessories and trinkets products in its home, Sweden. Until 1948, IKEA began to design its own furniture products and sold in low price with high quality (Ellis, 2010). The process of business development is from home selling the products, open a retail store in Almhult town, Sweden (1958), then develop a larger retail outlet in Norway (1963). In 2012, IKEA committees plan to develop a wholly-own subsidiary corporate in India countries after did the market investigation.
Currently, majority of IKEA stores are wholly owned and managed by INGKA Holding (also known as Stichting INGKA Foundation). The wholly owned subsidiary strategy explain that majority of stores' operations, management, its furniture design and manufacture are overseen by INGKA Holding. For the case, IKEA has long eyed the retail market in India, now plan to invest 900 million to create a wholly own subsidiary in India (Kinetz, 2012). On the other hand, IKEA also implements the franchising strategy in some countries to manage minority stores. The franchisees who allowed using IKEA's concept and trademark to run business have to pay 3% of revenue back. Since the culture and value is different in every country, IKEA committees evaluate the country's local market and its future expansion opportunities before go in.
For the future expansion, we suggest that IKEA should take joint venture strategy as business expansion strategy in India country. Joint venture is a good strategy to assist a company enters into a different cultural market. As an example, Wal-Mart knew nothing about Asian retail market, they choose entered into Hong Kong via joint venture with Thai conglomerate (Neelima Mahajan-Bansal, 2012). Second recommendation we suggest to IKEA is using wholly owned subsidiary to enter Brazil. The reason we choose Brazil as another target market because it has stability of political economy environment which can reduce various risk of business (n.a., 2011). IKEA also can take the advantage of Brazil since there has full of high quality woods as the resource for business (n.a., 2011).
2.0 Current Expansion Strategy
Wholly owned Subsidiaries
IKEA use wholly owned subsidiary as their main expansion. The IKEA corporate structure is divided in to two parts which are operating and franchising. Most of the IKEA's operations practices are overseen and managed by INGKA Holding B.V. INGKA Holding B.V is wholly owned by Stichting INGKA Foundation, a non-p