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Ikea in China: an Arduous Jorney

Personal Reflection

     The topic studied in the article about Ikea`s operation in China showed us that even a very established company or brand with lots of resources can face threats that if not well treated can be seriously affected and compromise the continuation of the operation. As seen, they need some time and here, we talk about years to operate with low or no profit just to understand how to position the brand, identify correctly the target market, decide where areas are more advantageous, and many other adjustments needed to offer safety for new, higher and longer investments.

     We all worked together splitting the topics and then analysing all together in meetings to adjust guarantee that everything was cohesive and matching with the purpose.  I worked on the macro analyses identifying which were the important points that Ikea would need to dispense attention and investments to obtain success in China, as well I worked on the Marketing implementation where we were able to explore how those areas were really developed after some years operating and acquiring knowledge about the local habits of consumption.

      All the group members helped one another reading the pointing possible changes in their productions and how to better structure the assignment. Everybody worked actively with total engagement.

     With this production we observed that even for a brand with lots of success over many countries it is a real challenge to start an operation in totally new market, country or continent what clarifies for us how the local culture can influence on the success of a business everywhere. It shows us as well the importance of having data collection and analysis to identify the target market, which are completely different everywhere because of their power of buying, their spaces or the way they use stuff, and then build an accurate marketing plan to reach the objectives of the company and turn it into a profitable operation and as in the Ikea`s case in China, independent of the other parts of the company. It was interesting to see all the process of running a business in China and how the government and the laws of each place can impact the success.

     Personally, I am happy with the results we got at the end, and I believe we have done a great analysis of the study case and as well suggested some more possible changes or areas needing more attention of the people that controls the business.

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