Selection of New Market - PESTEL Analysis
Political and Legal environment
-- Political stability is improving steadily
-- Remains a top destination for FDI(Rosener 2012)
* Provide concessions in the field of public
infrastructure and electricity
--The import tax for furniture in Brazil is low around
5-15%
--Government Programmes- "Zero Hunger" (Kaur 2013)
*Income inequality
*Access to credit
Econmic and Social environment:
--The highest average purchsing power (ITTO 2013)
--Almost 10% of people lives on less than US $ 1.3 a day
--The miniment wage in Brazil is US $ 335 per month (ICCO 2014)
IKEA's current situation
In 2013, both sales and profit set new records for IKEA, but the rate of growth was a lot lower than in previous years.
Introduction
Founded in Sweden in 1943
by Ingvar Kampard