European firm IKEA’s strategy in international business

The present case study deals with different strategies adopted by a large multinational in its international business operations. Originally established in the 1940s in Sweden, IKEA has grown rapidly in recent years to become one of the world’s largest retailers of the home furnishings. IKEA’s initial international strategy in Europe had not paid significant attention to local tastes and preferences in the different European countries. In its initial endeavor to expand globally, IKEA largely ignored the retailing rule that international success involves tailoring product lines closely to the national tastes and preferences. This case study examines the challenges faced by IKEA in its overseas expansion and explores evolution of international business strategies over passage of time in IKEA.