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Executive Summary
This report details the process of developing a market entry strategy in the furniture industry of the IKEA Group in Australia.
In the country analysis, the business environment of IKEA in Sweden is explored in terms of company history, company total revenue, the current position in the international market and their main competitors in the marketplace.
Also, the business environment of Australia is analysed in terms of social and cultural, technological, political and legal, demographics, and economic factors that might have an impact and affect the way an international business enters the market.
The economic imperative approach is chosen to formulate and implement its international strategy as the IKEA group used the global strategy based on cost leadership, differentiation, and segment.
Franchising is chosen as the most effective market entry strategy to penetrate this market. It provides a vehicle for entering markets where the marketing environment and economic systems of separate countries are diverse. In this case, Australia will be able to allow for acquisitions in sharing knowledge, local experience, and technologies in order to be successful in the marketplace.
The main international management will be covered in the areas of culture, human resource selection and labour relations. By analysis these three issues, the IKEA Group will be benefit in adapting management practices to different culture, political and economic.
The three important recommendations about culture adoption, appropriate entry strategy and foreign direct investment can be help the IKEA Group gain a long term benefit for their future international operational development.


Table of contents
1 INTRODUCTION 3
2 BODY 4
2.1 IKEA ENVIRONMENT ANALYSIS 4
2.2 AUSTRALIA BUSINESS ENVIRONMENT ANALYSIS 4
2.3 APPROACH TO FORMULATION AND IMPLEMENTING STRATEGY 5
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