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On investment Strategy of multinational corporations entering into Market of China--taking IKEA as case study

论文作者:留学生论文论文属性:案例分析 Case Study登出时间:2010-08-04编辑:zuozhuo点击率:7945

论文字数:17186论文编号:org201008041104153211语种:英语 English地区:澳大利亚价格:$ 66

关键词:IKEAMarketingMarket of Chinacase study

Abstract
In this era of globalization, multinational corporations play an important role in the international economy. As the largest developing country in the world, China has huge business potential with a total population of around 1.3 billion. The Chinese market has been an attractive market for foreign competitors since the economic reform in the late 1980s. At present, more and more multinational corporations have begun to establish business operations in China. The purpose of this study is to analyze how multinational corporations enter and develop in the Chinese market. In order to answer this, the research questions focus on which factors affect the performance of multinational corporations in the Chinese market.

In this thesis, I want to present a case study of the Marketing performances of the Swedish furniture store Ikea in China. The study focuses on characteristics of the Chinese market and analysis Ikea marketing strategies in China. As one of the world’s largest retailers in the world, Ikea has seen great successes upon its entry into the foreign markets. This case study will contribute towards providing multinational corporations with a good starting point for operating successfully in the Chinese market. The study indicates that the political environment, market entry model, degree of adaptation of products, cultural awareness and marketing strategies are the influencing factors on internationalization of Ikea in Chinese markets.


Key words: FDI, Ikea, Market entry, Marketing strategy, Culture study 
 
Acknowledgement
I would like to express my sincere appreciation to my supervisor Dr Peter Matanle. This Master Thesis would never be completed without your support and confidence in me. I also want to appreciate my friends who helped me a lot during my life and study. The greatest gratitude of all, however, I reserve to my family. My parents have been a source of warm and enthusiastic support throughout my days in the Master program.

Needless to say, any errors or shortcomings in this thesis are my responsibility alone. All suggestions and discussions are warmly welcomed.

Table of content
1 Introduction 5
1.1 Research area and background 5
1.2 Research objectives 7
1.3 Structure of the thesis 7
2 Literature Review 8
2.1 FDI policy and performance in China 8
2.1.1 Overview of FDI policy in China 8
2.1.2 FDI distribution in China 9
2.1.3 FDI performance in China 10
2.2 The impact of FDI in China 13
2.2.1 Technology and Service transfer 13
2.2.2 Increase regional GDP growth 15
2.2.3 Create job opportunity 18
2.3 Market entry 21
2.3.1Market size and Geographical distribution 21
2.3.2Identification of the distribution network 26
3 Key issues for foreign enterprises entering Chinese market 27
3.1 Investment climate 27
3.1.1 Political aspects 27
3.1.2 Economic aspects 28
3.2 Concept of Culture and Chinese Culture 29
3.2.1 Culture study 29
3.2.2 Chinese business culture 30
3.3 Chinese Furniture Market 31
3.3.1 Characteristics of Chinese furniture industry 31
3.3.2 Marketing analyze 33
4 case study –IKEA:One successful example of FDI in China 35
4.1 The IKEA saga 35
4.1.1 The IKEA Philosophy 35
4.1.2 IKEA in China 36
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