IKEA in China: Facing Dilemmas in an Emerging Economy

Liqun Wei; Xi Zou

doi:10.1142/s0218927507000849

IKEA in China: Facing Dilemmas in an Emerging Economy

Liqun Wei^*, Xi Zou

^*Corresponding author for this work

Department of Management, Marketing and Information Systems

Research output: Contribution to journal › Journal article › peer-review

Abstract

This case summarizes the development of IKEA's China operations since the opening of its first store in Shanghai in 1998. Since then, IKEA had added four retail stores in Shanghai, Beijing and Guangzhou. Nevertheless, IKEA still had not been profitable in China. The case aims to identify the underlying factors that influenced IKEA's performance in China. The case starts by summarizing IKEA's history, including its organizational characteristics and the competitive dynamics in the Chinese furniture market. Building on this framework, the strategic challenges of IKEA in China are highlighted. In this regard, the case analyzes the effectiveness of IKEA's distinct furniture concept, pricing strategy, and market positioning in the Chinese furniture market. On the whole, the case aims to provide insights for international business development in the Chinese furniture market.

Original language	English
Pages (from-to)	1-21
Number of pages	21
Journal	Asian Case Research Journal
Volume	11
Issue number	1
DOIs	https://doi.org/10.1142/s0218927507000849
Publication status	Published - Jun 2007

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Cite this

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title = "IKEA in China: Facing Dilemmas in an Emerging Economy",

abstract = "This case summarizes the development of IKEA's China operations since the opening of its first store in Shanghai in 1998. Since then, IKEA had added four retail stores in Shanghai, Beijing and Guangzhou. Nevertheless, IKEA still had not been profitable in China. The case aims to identify the underlying factors that influenced IKEA's performance in China. The case starts by summarizing IKEA's history, including its organizational characteristics and the competitive dynamics in the Chinese furniture market. Building on this framework, the strategic challenges of IKEA in China are highlighted. In this regard, the case analyzes the effectiveness of IKEA's distinct furniture concept, pricing strategy, and market positioning in the Chinese furniture market. On the whole, the case aims to provide insights for international business development in the Chinese furniture market.",

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AB - This case summarizes the development of IKEA's China operations since the opening of its first store in Shanghai in 1998. Since then, IKEA had added four retail stores in Shanghai, Beijing and Guangzhou. Nevertheless, IKEA still had not been profitable in China. The case aims to identify the underlying factors that influenced IKEA's performance in China. The case starts by summarizing IKEA's history, including its organizational characteristics and the competitive dynamics in the Chinese furniture market. Building on this framework, the strategic challenges of IKEA in China are highlighted. In this regard, the case analyzes the effectiveness of IKEA's distinct furniture concept, pricing strategy, and market positioning in the Chinese furniture market. On the whole, the case aims to provide insights for international business development in the Chinese furniture market.

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