International Business Strategy & Success Factors in an Emerging
S3100622 - Herdianti Wisesaputri - GBC Individual Assignment
BUSM3237 - Global Business Context – Individual Assignment
............................................................................................................................................................ Name: Student ID: Lecturer: Herdianti Wisesaputri (Deti) S3100622 Geoffrey Stewart
............................................................................................................................................................
International Business Strategy & Success Factors in an Emerging Economy: A study of IKEA’s Expansion to China
1. Introduction: IKEA and a Semiglobalised World
There is a Chinese proverb that says, "when the wind rises, some people build walls; others build windmills." The business world has and continues to see a ‘wind’ rises in the world economy, it is the move towards a world with declining barriers to cross-borders trade, with shrinking perceived distance, with converging culture, taste and preference of the population and with the merging of national economies into an interdependent, integrated global economic system (Hill, Cronk & Wickramasekera, 2008). This ‘wind’ is regularly referred in literature as globalisation. However, the current state of market globalisation is still much debated. Recent literatures tend to agree with the view that the world market is not yet purely global, in the Levitt definition (1983), which is a world where culture differences and preferences has converged and resulting in homogenized global market. Ghemawat (2003) concluded that, after a review of economic evidences from around the world, the international market indicates that currently the world is in a state of incomplete cross-border integration, he refers this state as semiglobalisation. Despite that, there are companies that has built ‘windmills’ to take on the ‘wind’ of globalisation. A semiglobalised market provides unique challenges to these
BUSM3237 - Global Business Context – Individual Assignment
............................................................................................................................................................ Name: Student ID: Lecturer: Herdianti Wisesaputri (Deti) S3100622 Geoffrey Stewart
............................................................................................................................................................
International Business Strategy & Success Factors in an Emerging Economy: A study of IKEA’s Expansion to China
1. Introduction: IKEA and a Semiglobalised World
There is a Chinese proverb that says, "when the wind rises, some people build walls; others build windmills." The business world has and continues to see a ‘wind’ rises in the world economy, it is the move towards a world with declining barriers to cross-borders trade, with shrinking perceived distance, with converging culture, taste and preference of the population and with the merging of national economies into an interdependent, integrated global economic system (Hill, Cronk & Wickramasekera, 2008). This ‘wind’ is regularly referred in literature as globalisation. However, the current state of market globalisation is still much debated. Recent literatures tend to agree with the view that the world market is not yet purely global, in the Levitt definition (1983), which is a world where culture differences and preferences has converged and resulting in homogenized global market. Ghemawat (2003) concluded that, after a review of economic evidences from around the world, the international market indicates that currently the world is in a state of incomplete cross-border integration, he refers this state as semiglobalisation. Despite that, there are companies that has built ‘windmills’ to take on the ‘wind’ of globalisation. A semiglobalised market provides unique challenges to these