Company founder Kamprad recently to expand into China. Kamprad’s decision was not based on market research but,rather, on his own intuition. How well is IKEA doing in China? Did Kamprad’s decision pay off ?
Answer IKEA has done very well in china. In 2005 its market revenue for the fiscal year was $1.2 billion (Yunyun, 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