A: IKEA has done very well in china. In 2005 its market revenue for the fiscal year was $1.2 billion (Yun Yun, 2005). Despite this tremendous revenue generation, it has not done enough to expand more stores as its competitors had done. B&Q its biggest competitor in China had opened 51 by 2005 stores while IKEA had opened only 3 a dismal performance considering IKEA went to china in 1998 a year earlier than B&Q. Its performance in 2005 in terms of revenue income accounted for only around 2% of its total global sales.
A: Kamprad, IKEA founder, although his company is making billion dollars in revenue, did not make a good decision to go to China in his own intuition rather than market research. Perhaps, his decision did not pay off. The company should have entered China with a better adaptation plan and strategy for challenges that the company faces including branding and competition factor had it conducted a market research before putting up stores in China (Sousa & Bradley, 2006).