Ingvar Kamprad Elmtaryd Agunnaryd IKEA is a private held international home product company. Incorporated in 1943.

Head office at ALMHULT, Smland, South Sweden IKEA is the world's largest consumer of wood.(1%)

IKEA is an international home product company that designs and sells ready to assemble furniture appliances and home accessories.

Taxation Issues
Heavy import duties imposed on multinational company by government. Sol: IKEA established multiple ventures with large no. of local suppliers(glass, wood, textiles, plastic etc.

Expensive product line

Prices considered low in Europe and North America, were higher than the average in China.

 Sol: IKEA built a number of factories in China and increased local sourcing of materials.

Through this company lowered its prices by more than 60 percent.

 flat pack style to ready to use famous for flat-pack furniture IKEA realized that Chinese people hate the do-it-yourself concept. Sol: At first IKEA hired local professional then it switched to assembled furniture.

 Product Image transition In Europe - stylish furniture at prices so low that everybody can afford it. In China - western-styled aspirational brand for the middleclass population Not targeting for cost leadership.

 Store location
In Europe & US In the suburbs, next to highways so that access by car is easy. In China outskirts of cities, next to rail networks as most customer use public transport.

 Promotional methods
IKEA uses catalogs as main marketing tool, but catalog were easy tools for piracy local producer. Copy cat competitors In China Advertising on social media as Weibo.

 Eco friendly technologies Since 1999, IKEA has been working on becoming eco friendly.

But these practices were difficult to implement in china. and had risk of increasing costs. Sol: IKEA decided to slow down process of green revolution.

Charging for plastic bags Asking suppliers for green products. Using renewable energy in stores.

2012 sales of 5.98 billion Chinese yuan. 21% increase than that of 2011 19% increase in sales in 2011 than that of 2010

IN EUROPE IKEA is planning to open 10 new stores in europe. Russia is a potential market for IKEA because the economy of Russia is expanding. Germany is a largest market of IKEA.

IN NORTH AMERICAS America market can be tough for IKEA as there Are big competitors like FORTUNEBRANDS,JARDEN,MASCO exists. IKEA planning to open 5 new store in USA.

IN ASIA Asia is a large potential market for IKEA IKEA is planning to enter in INDIA

CHINA,JAPAN and SINGAPORE is profitable market to expand.

IN AUSTRALIA AUSTRALIA is a big market for IKEA.There is always demand for ready to assemble furniture. IKEA increasing employees in there stores IKEA is currently operating in all the states of AUSTRALIA and planning to increase its stores.