Question

IKEA has decided to expand into Vietnam in 2023. Explain how it could balance its strategic means with the THREE (3) required capabilities in this new market.

Answer 1

On the masculinity scale it shows that China is more masculine than Vietnam, so IKEA need to adapt to the more feminine society in Vietnam in order to succeed there. But the culture of IKEA is a culture of hearts, full of enthusiasm and togetherness that would fit in well with the collectivist and feministic society in Vietnam. International strategy and entry model Traditionally, IKEA have used franchising when extending to new markets and this is also the advice when entering the market in Vietnam. In the Chinese market IKEA needed to adopt their positioning, target and location and this is the case even in Vietnam.

In Vietnam, IKEA should focus on targeting the young middleclass. IKEA have to keep in mind that access to cars in this target market is rare so a distribution system or a solution where the costumers can bring their goods on their scooters must be found. In different cities in different countries IKEA have different solutions for this. Either IKEA could use a similar system with trailers for scooters in Vietnam or they could develop a more sophisticated distribution system with home delivery.