We suggest IKEA use wholly owned subsidiary because there are around 16,000 furniture companies in Brazil and most are family owned companies. There are few key domestic players included Florense, Brazil Furniture Group, and others. The furniture market is keep growing and there is yet well known and large furniture company emerge in the market. (Evans, 2012). Thus, the furniture market in Brazil is still unexplored by multinational furniture company. Thus, a well known brand name is easily discover by the market and the consumer when large company entering into that industry. IKEA, a world famous furniture company, have the competency to entering into furniture industry in Brazil and create strong brand image to the entire furniture market easily. As there are many small furniture companies, it is easily for IKEA to enter and dominate the Brazil's market.