Week Five: Developing a Global Vision

Ikea opened it's first store in Sweden, and since then has expanded to over 300 stores in 38 countries. Ikea's splash global gateway page shows all the countries that sell it's products.

Ikea was one of the few companies that has done this, back in 2003. Language plays an important role when going global, so Ikea was careful to display each country in it's dominant language first. 


China plays a big part in global business. Ikea had to change their strategies when doing business with China. Ikea's known for their low prices and flat-packaging furniture, but, in China, they had to drop the prices about 10%. It worked out because sales were rising from 25% to 50%. And this was back in 2004. In present time, their stores are very popular now.


One of the countries Ikea has yet to open a store in is India. Ikea's catalog has already made it's way through the country though "magazine hawkers." India is next on Ikea's list. This year Ikea says it will spend about $163 million on grassroots development programs in India, and has been working with UNICEF and Save the Children on Ikea's Social Initiative Project. The Social Initiative Project is to improve the rights and life opportunities of children. Ikea claims that India could be as big and profitable as Europe has been. But the only way Ikea can sell in India is through a joint partnership, where a 49% stake of the venture is held by a local Indian firm, as said by BBC News. But Ikea's chief executive, Mr Ohlsson, says it's not an option. So India is on hold until they can figure out what can be done.