Issues of International Marketing Assignment Example | Topics and Well Written Essays - 2000 words

Issues of International Marketing - Assignment ExampleAs of January 2014, IKEA owns 349 retailing outlets across 43 countries. The gross revenue was 28.506 billion in 2013 and its operating profit share was worth 4.011 billion (IKEA Group, 2013). IKEA is a privately owned business organization and its develop was Ingvar Kamprad. The current CEO and chairman of the company are Peter Agnefjll. The company manufactures more than 12000 variations of products and conducts business in all major economies of Europe, North America, Asia and Oceania (Chu, Girdhar & Sood, 2013). Due to large business internationalization, the scope and scale of IKEAs business are wide. The company utilizes 1% of the global supply of wood. IKEA has expanded its internationalization process by chase different types of market entry approaches (Dickson & Giglierano, 2000). In China, IKEA expanded business through joint venture entry approach. A joint venture is a additional business agreement whereby two or mo re business entities merge as a completely unseasoned organization or to generate new assets to the equity holding of both the companies (Campbell & Netzer, 2009). IKEA entered the Chinese market through a joint venture agreement. The company opened its retailing outlets in prominent locations in China under this venture agreement. IKEA had entered the Chinese market in 1998 (Harapiak, 2013). The company had selected the joint venture method for lowering the political risks associated and gaining core competencies within the kinetic furniture industry. Moreover, according to the Chinese regulations during IKEAs entry, a foreign organization could enter only through a venture business with any immanent Chinese company. By forming a joint venture with a local furniture company of China, IKEA made strategic alliances with the Chinese suppliers and appropriately evaluated the market features therein (IKEA Group, 2013).