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The internationalization of IKEA into China

Introduction

When dealing with international marketing is one of the key points you should consider whether the product or marketing to be standardized or adapted to each local market. The question is one of the most debated in the international marketing literature by creators such as (XXXXXXXXXX, XXXXXXXXXX, XXXXXXXX). The focal point of this activity is the problem between standardization and adaptation in the international plan. First reviewed a theoretical perspective on the problem, based on Levitt's controversial and much omdoskiterede article from XXXXX, XXXXX, followed by an overview of the criticism has been against Levitt and the complete theory about standardization. A critical evaluation of the whole problem of standardizing versus adaptation follows then And lastly curved off with conclusions and further reading.

Teoretiske koncepter - standadisering versus adaption

According to Levitt - the most radical of the proponents of standardization thinking - there is a lot in favor of a standardization strategy. In Theodore Levitt's article from 1983 (FIND XXXX Introduction about Globalization Thoughts - Fra pdf med GlobaliseringXXXXX), where he talks about the globalization of markets and the standardization of products and development processes, Levitt stated, "Only global companies will achieve long-term success by concentrating on what everyone would like in alternatively than fretting about the facts of what everyone considers they like" His basic idea was showing the necessity for standardization in industry techniques and products to have the ability to increase the relative quality of slipping costs and so the price per item. This notion was founded by awareness of globalization and the coupled development of following homogenization of consumers and their needs.

In his publication from 1995 The Globalization of Market segments in Global Marketing Management. Conditions and Readings Levitt argues, first, that markets the world over converge so that a follow consumer personal preferences worldwide becoming more more even. A global demand structure emerges which is often satisfied through a global and standardized XXXXXudbudXXXXX. Second, a standardization of products and marketing has an chance to achieve economies of range in production and lower costs. This leads to good deal of the products thus freeing resources to product development. Standardization means that you avoid accommodating local preferences, and instead focus on developing the main qualities of the product. Whatever the preferences in confirmed time might be for a local custom product, consumers will wrap up prefer global, standardized products, for their basic quality and cheap price. If companies want to succeed in the global competition, they need to suppose that the needs throughout the world are quite simply alike.

Theodore Levits article in "Harvard Business Review 'in 1983, XXXXX' The Globalization of Markets' XXXXX since it was created was one of the very most questionable marketing hypotheses. Most of the discussion has gone on the correctness of the Levite central idea, namely that the most successful, future business strategy will be the completely standardized, which requires no account of what is thought to be 'superficial' distinctions between world markets.

Rather than being paralyzed by distinctions in individual market segments to develop global work at home opportunities to start to see the similarities between consumers across various markets. Confronted with this view highlights the supporters of an increased focus on locating and individual market adjustment that followers of globalization, including working from an unrealistic knowledge of globalization pace where in fact the marketing function obviously globalizing at a faster speed than the consumers, it postulates that convert tilXXXXX Usunier, Jean-Claude, 1997: "Marketing Across Ethnicities', Prentice Hall. . . XXXXX The cultural differences between market segments are weighted more closely than the proponents of globalization expresses particular in connection with marketing communication. The distinctions between marketplaces outweigh the similarities. Nobody and there is nothing fixed culture. Both products and consumers should be seen and recognized in their cultural framework XXXXX Mooij, Marieke those, 1998: "Global Advertising: Understanding Cultural Paradoxes', Sage. XXXXX

.

For example, the company's marketing communication includes lots of standardization immediately obvious benefits of learning resource characteristics. The idea of one global theme for the company's marketing communication is appealing, but may pose a risk to ethnical and linguistic variations between the markets examined. Several brands have thus different image to different marketplaces. Thus connected instance Honda with properties like consistency and quality in the U. S. as the Japanese market, where these properties are believed self-evident, see Honda as an expression of speed, children and energy XXXXX Aaker, David A. and Joachimsthaler, Erich, "The Lure of Global Branding ', Harvard Business Review, Vol 77, No. 2, 1999. XXXXX A sales argument would not actually have the same appeal in all markets, simply because the text is translated in to the vocabulary market.

Theories that claim against Levitt's applying for grants globalization illustrate that standards in general do not meet consumer needs and lifestyles. These theories imply individuals are becoming more diverse globally, which means that products and services must change with the modification and use of standards in the direction of regional segments. The critics of global marketing mean that cultural, political, and economic differences in different countries call for an adaption to local marketplaces XXXXX (Boddewyn, Soehl and Picard 1986; Hill and Still 1984; Quelch and Hoff 1986; Sorenson and Wiechmann 1975; Wind 1986). XXXXX The thought of standadisation can be an oversimplification of actuality. There are modifications between different countries in terms of consumer needs, purchasing electric power, commercial infrastructure, culture and customs, regulations, and technological progress. These factors remain to different from country to country so its necessary to adjust the marketing strategy for each and every market XXXXX (Terpstra & Sarathy, 2000) (Standardization versus version of international online marketing strategy: an integrative analysis of the empirical research)). XXXXX

Common to the authors, highlighting the limits of standardization strategy is that they indicate the cultural dissimilarities as one of the key barriers to a standardization strategy. The main element concept that is used to spell it out the importance of culture in online marketing strategy is "cultural bind. " This suggests that products can become more or less tied to the ethnicities they consumed, and that the degree of social bonding determines whether they can be standardized or not. Food and clothing should therefore be firmly culture-bound products, which can be difficult to standardize, while commercial goods are kulturfri, and for that reason much easier to standardize. In between you place the buyer durables, which more than kulturfri eg food but more culture bound than commercial goods XXXXX (Usunier 1993). XXXXX

The classic controversy on standardization versus version is increasingly proving to be predicated on some outdated terms. Culture is the practices and ways of thinking, we take for granted. This is also the knowledge of culture that underlie the traditional question on the Levite's point: from what degree can something match the prevailing culture. This paper's discussion is that it is not so much a question of whether the market is (or marketing) is substantially different from the culture, it must easily fit into. What matters is rather whether it can operate in different discourses on ethnical identity in local market segments. Cultural Understanding last night to predict the issues and potential misunderstandings arising from different ethnic backgrounds. Furthermore, the essential question of the relationship between marketing and culture in this point of view, to what extent an individual, current marketing strategy or tactic does apply in another cultural context.

The problem with the Levite's discussion is that the globalization process basic seen as powered by demand. That is summarized in the next lines: "The uniformity of personal preferences will undoubtedly lead to standardization of products of commercial and commercial and businesses XXXXX 'Levitt, Theodore (1983), " The Globalization of Marketplaces', Harvard Business Review (May-June), 92-102. pp 93, XXXXX.

But, as we have seen, there exists both a solid trend towards standardization as well as perhaps even more likely that globalization is carried frontward by competitive resource somewhat than demand aspect, and this those in each case are not unbiased of each other. It has opened Levits debate for a critique from various experts, whereas Levits lack of understanding of the idea of culture and continual cultural distinctions in the globalizing world.

Yet other theorists XXXXX Robertson, Roland (1992), Globalization: Friendly Theory and Global Culture, London: Sage. XXXXX Robertson, Roland (1995), 'Glocalization: Time-Space and Homogeneity-Heterogeneity', M. Featherstone, S. Lash & R. Robertson, eds, Global Modernities, London: Sage, 25-44. XXXXX has tried to go beyond this dichotomous argument - a counterpart to the argument that is conveyed in marketing books on standardized or customized wine advertising (see Wind & Douglas 'comment XXXXX Wind flow, Yoram and Susan P. Douglas (1988), ' The Misconception of Globalization ', Columbia Journal of World Business, Vol 12 (Winter). XXXXX to Levite thesis). Here it is suggested that you speak about 'glocalisation' since both homogenizing (globalizing) and heterogeniserende (localising) procedures can be an essential part of globalization. Robertson emphasizes this when he recognizes the local (and location) as a simple rather than a conflicting part of globalization.

Thus in a single sense, such as Levitt argues a homogenization of demand - but it is just a demand for differences rather than corresponding to even, standardized American products. Levite blunder is to acquire considered culture as something that is present independently of the market, an "external factor", whose outcomes (special choices, etc. ) could and would be beat by so-called objective product attributes. Alternatively, it shows above that culture is something that is demanded and also quite definitely created the market. In the next we will therefore claim that culture is not such market external factor, but something that is reflexive. This means that culture is not at all something that may be taken for granted - as if it acquired an unchanging essence

Critical assessment

XXXXXXX Contingency Theory: from Product and Advertising adaption in Export Projects XXXXXXX

The term globalization is the previous ten years become one of the most used and abused buzzword. Just within the marketing area is the concept of globalization somewhat more complex in years, since it was employed by a self-control of great old masters in a seminal article as long as 20 years previously. We refer of course to Theodore Levits article in "Harvard Business Review 'in 1983, " The Globalization of Marketplaces XXXXX' Levitt, Theodore (1983), "The Globalization of Marketplaces', Harvard Business Review (May-June), 92-102. XXXXX This has since been one of the most controversial marketing hypotheses. Most of the discussion has gone on the accuracy and reliability of the Levite central idea, particularly that the most successful, future business strategy will be the completely standardized, which can take no consideration of what's thought to be 'superficial' differences between world marketplaces. XXXXX Bauman, Zygmunt (1999), Culture as Praxis, 2nd model, London: Sage XXXXX

Levite discussion is the idea that companies can gain competitive edge by exploiting economies of scale XXXXX Levitt, Theodore (1983), "The Globalization of Marketplaces', Harvard Business Review (May-June), 92-102. pp 92]. XXXXX On the one hand it is true that globalization contributes to new market conditions, where such is impossible for companies to stay international market development ignored, though they only operate domestically. Alternatively, it has showed how local companies can push their global opponents accurately by emphasizing their local root base. The actual fact that the local should be a quality alone, completely forgotten by Levitt XXXXX Ger, Gјliz and Russell W. Belk (1996), 'I'd Like to Buy the World a Coke: Consumption-scapes of the' Less Affluent World "', Journal of Consumer Plan, 19 (3), 1-34. XXXXX

The usual discussion for standardization is still from that brand names and products have a precise meaning which impacts the customer when they meets these products or brands. But as so aptly exhibited, is even Coca-Cola (king of global brands) importance universe subject to local interpretations. And perhaps Coca-Cola's management has said it is a multi-local rather than global product XXXXXAskegaard, Soren & Fabian Csaba (2001), 'The Good, the Bad and the Jolly: Flavour, Image and Symbolic Resistance To The Coca-Colonization of New Zealand ', S. Dark brown & A. Patterson, eds, Imagining Marketing, London: Routledge, 124-140. . XXXXX also express statement that Coca-Cola is "welcomed by alle XXXXX 'Levitt, Theodore (1983), " The Globalization of Markets', Harvard Business Review (May-June), 92-102. pp 93, a XXXXX oversight of the global on Coca-Cola are both inclination for and level of resistance to brand as indicated through the idea of 'Coca-Colonization' which conceals the actual fact that the American / western lifestyle brand represents, not welcomed by everyone.

Neither or

Stadardisation and adaption r tvҐ Extremes in marketing. I sin article Kellogg's - Internationalisation versus globaliseringen of the marketing combination (2001) Claudio Vignali cites Terpstra, V. and Sarathy, R. (1994) for writing att nr implementing a "helt" localized online marketing strategy only coincidental ligheder EXIST. Completely standardised marketing is identical in all market segments. Neither extreme in Usually used. I would like to give some examples of how various multinational companies employed in or have used the global market. The good examples are taken from international journals, and gives all of them an information into situations that underpins kompleksitetetn in a global markedsfrinbgs maneuver. First beskrivesd viorksomheder and products briefly, then Aims, Strategies, and problems etableret and encounters and Endelig the reactions, resultater, og er rekommendationer Collected. Both circumstances chosen are, respectively, McDonalds and IKEA. These conditions are especially interesting since it has two large viorksomheder whose basic theory is tight notion management and standardizing for obtaining econmicies of range in both marketing, sales and production. These descriptions provide types of how, even though we have a standardization strategy must adjust to local market segments because of culture.

Foreign Markets: A BUILT-IN Approach

Research shows that standardization of marketing alternatives determines the use of the same marketing combine in

throughout the global market, but standardization is often not used to companies anticipated to dissimilarities in vocabulary, culture, consumer preferences, laws and regulations, marketing infrastructure and competition composition in a variety of countries. Complete adaptation of marketing alternatives are not ideal because in cases like this, companies can not use the benefits of level economics, marketing knowledge and information obtained in other marketplaces. But adaptation helps companies to evaluate and effectively use ethnic differences foreign markets and different products, their properties and potential use. Recent research demonstrates changes in the global market afflicted by globalization has altered also alternatives of international marketing: buying a successful international performance companies do not have to choose one end, and companies that can combine multiple options to meet consumer needs in the global market also to follow their goals more effectively. The purpose of the global marketing strategy is to find an optimum blend of integration and rationalization of businesses and arrangement systems in a global market.

Standardization in International Retailing: Transferring Storebrand Image Salmon and Tordjman (1989) unveiled one of the very most recognized classifications of international sales strategies. This classification can be viewed in conditions of global / multinational strategies and the implications for standardization or adaptation of marketing activities and the seat of decision making for the international distributor. The authors define a global strategy that "faithful replication of a concept abroad", which corresponds to a formulation already proven in the country. Based on the authors, a corporation that has decided to choose this plan is a homogeneous consumer audience with similar standards of living and expectations. These companies were viewed as McDonalds and IKEA. The means to achieve such a strategy is by using a standardized marketing lists. Therefore that companies use a standardized or similar retail combination in each one of the foreign markets they have got joined. Specific product range and store format, services, marketing and advertising strategies, pricing procedures and store design is pretty much standardized, in whatever country they operate. But as the authors notice, are global vendors over both controversies. The foremost is the need to adapt to local markets and thus satisfy consumer targets, and the second is to make use of their corporate and business resources in order to benefit from the economies of size derived from a standardization strategy. The creators state that the initial concept or the uniqueness and distinctiveness of something, combined with business acumen, is the competitive benefits for global retailers be successful. Besides this, the products have an extended life, thus lowering the risk associated with them as fashion items.

McDonalds is the globe, aos major fast-food restaurant string. It includes more than 30, 000 restaurants in over 100 countries. McDonald's Company is the world's greatest owner of hamburgers and other fast foods. Although essentially an American procedure, and one of the better known American icons, the majority of income from activities beyond your USA. In its 2000 twelve-monthly report XXXXXXXX, says that 62 percent of the annual income is allocated to functions outside America. This provides an interesting situation for a company that has built his empire out from doing all the food produced - the same. Hamburg They have exactly the same size, the same amount of pickles are placed on each bun, and milkshakes are measured with extreme perfection.

McDonald's business design is basically the same regardless of which country it goes to, but there are local differences, the business may face. The truth of McDonald's glaciers dircribed pҐ article McDonalds: "Think global, act local" - the marketing combination (Vignali XXXXXXXX. McDonald's expand globally mens Altering sina local areas. McDonalds er standadised in large size, men de har allso modified to the neighborhood Marketplaces fordi of Faith based Laws, Costume eller kultur. In Israel two mёder Kosher Custom Big Macs gҐr utan cheeseburger dished up two separate Meat and Journal products. In India de har serve Vegetablke McNuggets Mutton-based Maharaja Mac (Big Mac) as Hindus do not eat beef. Muslims USUALLY DO NOT eat pork and McDonalds glaciers compensated med halal license att sometimes advocates total Lack of pork pҐ muxlim lande. In its 2000 twelve-monthly report is dependant on three elements: A) Adding restaurants, B) Improve income and revenue existing restaurants, and C) to improve international success in a culturally hypersensitive way. This implies a McDonald's beginning in a international country does indeed more than just change its menus. It adapts its operating manual for the capability of the neighborhood franchisee. Quote from statement: Maximizing profits at existing restaurants will be achieved through better management, reinvestment, product development and refinement of effective marketing and lower development and operating costs. Improved upon international profitability will be became aware as economies of level are achieved in various markets, and since it is covered by the global infrastructure. . . . . .

Another case of the essentially standadised company is IKEA. I artiklen ''A standardized method of the world? IKEA in China'', ( Johannson, U. and Thelander, A. , 2009), giver forfatterne et indblik i de udfordringer IKEA har haft med global markedsfёring i en casebeskrivelse af deres introduktion og markedsfёwedding ring i Kina. IKEA har med stor succes standardiseret al markedsfёdiamond ring og rotate out i store dele af verden, men Kina blev en speciel udfordring, hvor standadiseringskonceptet ikke var gangbar pga. markedets, isr, kulturelle forskelle.

IKEA broadened to China in 1998. The primary focus on group are women, because these were considered those who make decisions at home. IKEA is convinced its central customer to be around 30 years old. This focus on group

are the era born under the main one child policy and they're believed to be impulsive, easy to affect, very sociable and focused on leading international consumer brands.

- In most countries image of IKEA is a company with low prices. In China the contrary is true. The main strategy has gone to reduce prices and make the IKEA in China for the reduced cost concept (about) as known ra worldwide.

- IKEA stores in China is nearer to town than stores in other parts of the world where they're usually located well outside city centers. In China, consumers have less access to automobiles and butikkernw have to be

public travel routes. Nevertheless, IKEA built 700 car parking spots under a shop in Shanghai in expectation of that shopping patterns changes.

- In China there isn't a DIY culture

- China's individuals are using the store as public venues. For them this can be a pleasant environment and a completely removed from other home furniture stores in China where you do not have agreement to feel and touch the merchandise. People in Shanghai shop may still be seen evidently sleeping in beds and on sofas and read a book with their ft on the furniture. Rather than dwelling address the problem, IKEA staff hope that these same people will later go back as customers.

While IKEA is often seen as a model for standardization among sellers, it is clear which it has had to make significant alterations in China. Provides an attractive and abnormal product was never by themselves will be adequate. IKEA claims that the "worst" is currently getting founded in China, and that experience will stand it in good

Instead, as it expands into other culturally-different markets.

IKEA will argue that it has adapted, while remaining true to its business principle. But its experience also implies that there are boundaries to what lengths a company can go with standardization, and what lengths along this road consumers are prepared to be taken.

XXXXXStandardization / Version of Marketing Alternatives in Companies Operating in Foreign Marketplaces: An Integrated ApproachXXXXXX Research demonstrates standardization of marketing solutions is essential for making use of the same marketing blend throughout the global market, but standardization is often no use to companies because of distinctions in dialect, culture, consumer personal preferences, laws and regulations, marketing infrastructure and competition composition in several countries. Complete adaptation of marketing solutions is also not useful because in that case, firms can not use the benefits of scale economics, marketing knowledge and information acquired in other marketplaces. But version helps companies to evaluate and effectively use ethnical differences foreign markets as well as different products, their properties and potential use.

Recent research shows that changes in the global market influenced by globalization has altered also alternatives of international marketing: buying successful international performance companies need not

select one end, and companies that can incorporate multiple options to meet consumer needs for

global market and follow its goals more effectively. The objectives of the global online marketing strategy is to find an optimal mixture of integration and rationalization of operations and pay out systems in a worldwide market.

Standardization versus adaptation of international marketing strategy: an integrative assessment of the study empirisk To overcome the above polarization, one third group of research workers provide a contingency point of view on the standardization / adaptation debate. In their view: (a) standardization or adaptation shouldn't be viewed in isolation from one another, but as two ends of the same continuum, where in fact the degree of corporate and business marketing strategy

standardization / adaptation may differ between them (b) the decision to standardize or conform online marketing strategy is customized to the precise situation which ought to be the result of a thorough analysis and examination of relevant contingency factors prevailing in a specific market at a given time and (c) the appropriateness of the chosen level of strategy standardization / version shall be assessed on the basis of its effect on company performance in international market segments (Quelch & Hoff, 1986; Onkvisit & Shaw, 1987, Jain, 1989; Cavusgil & Zou, 1994). Therefore, the task for the international firm is to know what specific components of the strategy is possible or advisable to standardize or modify the conditions under which and also to what amount.

Konklusion og videre lsning

Konklutionen I To what scope should a consumei goods

multinational corporation

vary its marketing

from country to countryl

Konklusion

Should marketers try to standardize their products and marketing and sales communications in order to minimize the costs of doing business internationally? Or should they adjust their products and information depending on market where they wish to operate?

XXXXXInternational markedskommunikation

XXXXXStandardization/Adaptation of Marketing Alternatives in Companies Functioning in Foreign Market segments: An Integrated ApproachXXXXXX

I denne artikel har vi prёvet at efterkomme opfordringen til at komme ud at »pjaske rundt pҐ overfladen af sёen, nҐr det drejer sig om at studere relationen mellem marketing og kultur [11]. Inden for marketing er indstillingen til kultur, mҐske ikke overraskende, dybt forankret i den vestlige modernismes tendens til at »ndre forskel til essens [20: 80]. Imidlertid minder »skaberne (etnoskaber, teknoskaber osv. ) operating-system om, at kultur praktiseres og konstitueres ud fra praksis [1]; [12]; [20: 81]. Endvidere bliver vi mindet om marketings rolle som et globalt system, der frembringer forskellige identitetsrum: livsstil, kultur, subkultur, etnicitet, hybridisering, kreolisering osv. I lyset af dette bliver markedsfёrte varer til materielle manifestationer af ideen om kultur, af »det kulturelle ideoskab, som vist ved eksemplet med belizisk madkultur [36]. Dette bёr ikke lede operating-system til at forveksle vsentliggёrelse med vsen. Det er ikke, fordi mange forbrugere enten sёger efter eller har en opfattelse af deres egen faste kulturelle identitet, at vi som forskere kan konkludere, at en sҐdan eksisterer, og markedsanalytikere har hidtil vret tilbёjelige til at ignorere de indviklede forhold, der glder inden for kulturelle udviklingsprocesser.

»SҐ lnge kulturel mangfoldighed bliver forstҐet som en mangfoldighed af kulturer, kan kulturstuderende kun se televisionrkulturel kommunikation og televisionrkulturel sammenligning som et af deres centrale problemer [6: xlv]. For et marketing- og forbrugerforskningsmiljё, der interesserer sig for den kulturelle sizing i international marketing, betyder dette, at komparativ analyse ikke lngere er det mest indlysende mҐl for forskningsaktiviteter, men snarere et udgangspunkt. Kultur, snarere end en forklarende struktur af vsentlige trk, bliver et paradigme, pҐ basis af hvilket marketingpraktikeres og forbrugeres praksis og tilgang fҐr betydning for forskerne. Kultur er ikke et studieobjekt, men et nёdvendigt perspektiv for at fҐ indsigt i det menneskelige samfunds struktur og forandringsprocesser.

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