The Internalization Process Of Ikea's Internalization Strategy

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INTERNALIZATION PROCESS OF IKEA COMAPNY We all know that comapanies go international for many reasons but always typical goal is comapny growth and expantions. When a company searches for new interesting markets abroad and also hires international employees, using well designed international strategy can for sure expand business on foreign markets. Internalization strategy of companies is now possible because is no problem to manage business by phone or e-mail. There is also no problem to travel by plane from Europe to Asia in few hours what was not possible in past. Internalization process is something really interesting because companies create their strategy in many different ways. Business organizations may expand from their home countries to foreign countries by setting up replicas (of parts of) their value chains in other countries. Well-known examples of such organizations are those that expand internationally by replicating a format aimed mainly at distribution, such as McDonald’s, ,Starbucks and also IKEA. IKEA is a company established in 1940’s in a small village in southern Sweden. Firstly Ingvar Kamprad (owner of the company) was selling everything from pens and wallets to watches and nylon stockings by going door to door and …show more content…

Another example of IKEA’s international strategy in building good relationships with suppliers is in Asia, especially in Vietnam, where IKEA expanded its own supply base. Vietnam manufacturers offers low cost labor force and not expensive raw materials, while IKEA provides the view of creating a long-term, high-volume business relationship, and advice on finding the best according to the price raw materials, setting up and bulding factories, choosing what machines, equipments

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