Strategies Adopted in the International Market the Case of Ikea in France

School of Technology and Society

BACHELOR DEGREE PROJECT

Strategies Adopted in the International Market
The case of IKEA in France

Bachelor Degree Project in Business Administration 15 ECTS Spring term 2007 Authors: Damien BADIER and Carole ROUSSET Supervisor: Desalegn ABRAHA Examiner: Marianne KULLENWALL

Strategies adopted in the International Market The case of IKEA in France

This thesis is submitted by Damien Badier and Carole Rousset to University of Skövde for the Bachelor Degree in Business administration, in the School of Technology and Society.

2007/06/08

We certify that all materials in this thesis which is not our own work has been identified and that no material is included for which a degree has previous been conferred on us.

Signature:

Damien Badier

Carole Rousset

2

ABSTRACT

This Bachelor degree thesis deals with the strategies that IKEA has adopted in France since its establishment up to now. It is essentially based on interview with the person responsible for the public relations of IKEA France. But, other sources were used concerning our empirical findings: IKEA’s brochures, surveys from researchers… The purpose of the thesis is to explain and illustrate how a company succeeded to establish abroad, by applying a domestic concept. This issue is of importance because it provides information for the reader who would like to know how a company can be export all over the world by adapting its policy to the local specificities. It identifies and gives explanations about the marketing strategies implemented to export the IKEA concept to the French market.

The research was conducted using the case study method. It is based on primary and secondary data. Secondary data collected from IKEA´s brochures and survey research results and primary data collected through interviews with the person responsible for the public relations of IKEA France. The applied theoretical model is based upon the concepts of

References: 8.3. Literature Bertil Torekull, 2000, un design, un destin, la saga IKEA, Michel Lafond Didier Bardin, 1981, étude du marché de l’ameublement en 1981 38 Ghauri, P. And Gronhaug K., 2002, Research methods in business studies: Practical guide, Pearson education limited Kotler and Astrong, 2004, The principles of marketing, Prentice Hall College Div Jonathan Haskel and Holger Wolf (1999), Why does the “law of one price” fail?, CEPR Discussion Paper n°2187 Burda and Wyplosz (2005), Macroeconomics, a European text, fourth edition, OXFORD University Press Neil H. Borden (1964), The concept of the marketing mix, Journal of advertising research, June, VOL. 4, PP. 2-7. Barlon K. (2006), The concept of the marketing mix, University of Finland Goshal S Bäcklund J. (2001), Standardization and local adaptation, University of Stockholm The economist (1994), n°101