A Consultation Report for Harveys Furniture Store

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A Consultation Report for Harveys Furniture Store Executive summary This report was commissioned by the CEO of Harveys, the biggest UK furniture company, who plans to expand its business by entering the Chinese, Chilean, Japanese and Indian, market. It is undeniable that firms from developed countries face several challenges with these expansion plans. The research indicates that there is a variety of furniture companies that attempted to internationalize in emerging markets and they failed. The report uses the cases of IKEA and Home- Depot, companies which have been successful all over the world but whose strategies did not fit these markets. Through these cases, Harveys can learn from the mistakes of other furniture companies by focusing on the localisation of its products and tapping into the local turbulent market and avoiding cross cultural lapses. Failures in Emerging Markets Page 3 of 30 Report 2013 Table of Contents 1.Introduction ........................................................................................................................... 4 2. Formal and Informal Institutions ........................................................................................... 7 3. Background of Harveys ........................................................................................................ 8 4. Cases from retail furniture companies failed in emerging markets ..................................... 9 4.1 Home- Depot in China .................................................................................................... 9 4.2 Home- Depot in Chile ................................................................................................... 11 4.3 IKEA in Emerging Markets………………………………………………….………………14 4.3.1 Discussion on the company’s failure to expand in Japan and India ……………….14 5. Cross-Case

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