Referencing Styles : Open Description: From its humble beginning as a small general retail store in a village situated in the south of Sweden, IKEA has grown into the world's largest furniture retailer with 279 stores in 36 countries today. Specialising in furniture and home decoration, IKEA has an annual turnover of 19.8 billion euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA catalogue is printed in 52 editions with 25 languages, with a global distribution in excess of 160 million copies. IKEA sees the Far Asia as an emerging market still in its infant stage. Its number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai and Hong Kong are very small and comprises a mere 3% of the company's total sales. These stores were expected to be more successful in the near future. IKEA's imminent strategic expansion into this region exemplified its ambitions to dominate this emerging market. This Case Study illustrates how IKEA's ventures into China and Japan are laden with unique marketing challenges which it had not encountered before in other international markets. Read the attached case (Case Study: "IKEA: A Long March to the Far East" - Source: Oxford University Press) and answer the following questions; 1. Based on your analysis, what are the opportunities and challenges for IKEA in their market operations in (a) China; and (b) Japan? 2. Describe the market entry strategies that IKEA adopt in China and Japan respectively. 3. What are IKEA product, pricing, marketing communication and distribution decisions in the two Asian markets? To what extent these marketing mixes have been adapted to the preferences and needs of these markets? 4. For each of these markets, discuss and justify what, in your opinion, IKEA's marketing strategy should be in the near future to gain market shares and achieve higher profitability.The following assessment criteria will be used for marking this assessment task. Ensure that you have addressed all of the criteria in your work. • Attempted and answered all the case study questions • The answers are within the context of the case situation and reflect understanding of international marketing challenges and opportunities Page 20 of 27 | BSB60507 | Learner's Guide: BSBMKG605B Evaluate International Marketing Opportunities Version 3.0: 2013, Approved: QAC, Next Review: 2014 ^r%1^-^-v^» CR1COS Name: Pass Global Pty Ltd Trading as Australian Learning, Training & Education Centre jfl I IC^C « Provider Code: 22034 CRICQS Code: 02926D i^^4^^|^yiIdentified and articulated social, cultural, logistical and economic factors that contribute towards company's marketing challenges Identified and articulated market conditions and trends that create opportunity for company's products and business model in China and Japan Company's strategic initiatives are adequately analysed and discussed with respect to each market Strategic scope includes market perceptions, consumer behaviour/preference, operational challenges and pricing models Provided an overview of company's marketing mixes in China and Japan with specific focus on product, pricing, marketing communication and distribution decisions Discussed how the company had to adapt to prevailing market conditions in order to set its marketing mix Identified and described how economic, political, social and cultural factors affected company's marketing decisions Answers collectively reflect an understanding of IKEA's International marketing model and operational marketing structure for servicing the international markets Submission Guidelines Submit: • Case study analysis with an assignment cover sheet This assessment task must be completed in a designated session in presence of a trainer/assessor. Complete the attached answer sheet and submit for marking. Electronic versions of the assessment task and email/electronic submission arrangements are at further discretion of the trainer/assessor.