Ikea Feasibility Report

Contents Acknowledgements: 1 Executive Summary 2 Introduction to Furniture Industry 3 World Furniture Production 3 Role in World Economy 4 Characteristics of the furniture industry 4 Industry Trends 4 Furniture Industry in Pakistan 5 Introduction to IKEA 6 The IKEA Concept 6 History 6 IKEA Range 7 1. Design 7 2. Function 8 3. Low Price- 8 IKEA Product names 8 IKEA Catalogue 9 Major Global Competitors 9 Major Pakistani Competitors 9 Government Policies Targeted at the Industry 12 Policies to encourage location in a host country 12 Policies to Protect Local Firms 12 Policies to Discriminate Against Foreign Firms 13 International regulatory Frameworks 13 Predominant Corporate Strategies of the Industry 14 JOB TRENDS 14 Employment Pattern 15 Working Conditions 16 Which country is gaining / losing jobs 16 SWOT ANALYSIS 18 STRENGTHS 18 WEAKNESSES 19 OPPORTUNITIES 19 THREATS 19 “Pakistan, As A Potential Market For IKEA” 20 Government policies and current environment also favors IKEA 21 MODE OF ENTRY 22 FOREIGN DIRECT INVESTMENT (FDI) 22 EXPORTING 23 FRANCHISING 23 STRATEGY 23 Conclusions and Recommendations 25 REFERENCES 26

Acknowledgements:

First of all we would to like express our gratitude to ALLAH ALMIGHTY who blessed us with the strength and ability to complete this project on time.
After that we would like to thank Professor Ayesha Pervaiz who provided us with help and precious time to guide us through the course of this project. She has always been obliging and kept us affianced in our course. We would again like to thank Professor Ayesha Pervaiz who has not only taught us only the content of the book but has also prepared us for the practical world.
Then we would like to thank our classmates who helped us in this project and gave us moral support to complete this task. In the last we would like to thank each one of us in coordinating and cooperating in every situation we faced during the completion of the project.

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