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International Business, 8th Edition by Michael H. Moffett, Iikka A. Ronkainen, Michael Czinkota

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PART 4 CASE 2

IKEA: FURNISHING THE WORLD

IKEA, the world's largest home furnishings retail chain, was founded in Sweden in 1943 as a mail-order company and opened its first showroom ten years later. From its headquarters in Almhult, Sweden, IKEA has since expanded to worldwide sales of $30 billion from 301 outlets in 38 countries (see Table 1). In fact, the second store that IKEA built was in Oslo, Norway. The IKEA Group owns 267 stores in 25 countries: Australia, Austria, Belgium, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Hungary, Italy, Japan, Netherlands, Norway, Poland, Portugal, Russia, Slovakia, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The other 34 stores are owned and run by franchisees outside the IKEA Group in 16 countries/territories: Australia, the United Arab Emirates, Cyprus, Greece, Hong Kong, Iceland, Israel, Kuwait, Malaysia, the Netherlands, Romania, Saudi Arabia, Singapore, Spain, Taiwan, and Turkey. IKEA first appeared on the Internet in 1997 with the World Wide Living Room Web site. IKEA attracted 561 million visits (2009). The IKEA Group's new organization has three regions: Europe, North America, and Asia-Pacific.

The international expansion of IKEA has progressed in three phases, all of them continuing at the present time: Scandinavian expansion, begun in 1963; West European expansion, begun in 1973; and North American expansion, begun in 1976. Of the individual markets, Germany is the largest, accounting ...

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