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School of BusinessC-thesis in Business Administration, 10pCourse code: EX0010Supervisor: Leif Sanner 2006-06-07 
“One Design Suits All” 
 
-A Case Study of Ikea in Shanghai, China
 Neelima SrivastavaGrace Fei Andersson
 
ABSTRACT
DATE:
 
2006-06-07
LEVEL:
 
Bachelor Thesis in Business Administration
AUTHORS:
 
 Neelima Srivastava & Grace Fei AnderssonBangatan 3D Aspa 50872228 Västerås 731097 Köpingnsa02001@student.mdh.se gan02003@student.mdh.se 
ADVISOR:
 
Leif Sanner 
TITLE:
‘
One Design Suits All’ 
 
-A
Case Study of IKEA in Shanghai, China
 
PROBLEM:
 
In today’s time of globalization, for a company to be successfulin foreign markets, it is important for a company to adapt itself to the local market preferences. However Ikea, the Swedishcompany sells a “typically Swedish” mix of homogeneous products worldwide and does not adapt to local market preferences. China is a culturally diverse market compared tothat of Sweden. Ikea continues its standardization strategy inShanghai, China.
 
PURPOSE:
 
The aim of our thesis is to investigate the consumers perceptiontowards Ikea’s standardized marketing mix strategy, inShanghai.
METHOD:
 
We have used qualitative as well quantitative method in thisthesis. The primary data (through questionnaire and telephoneinterview) and secondary data (from literature, articles, companyreports and internet, have been gathered to get information onstandardization strategy of Ikea, in Shanghai.
RESULT:
We have found out that Ikea has succeeded quite wellwith its standardization strategy in Shanghai. Although there isno product specially designed for the local market, the typicalSwedish designed products are highly appreciated by theconsumers in Shanghai. The consumer’s acceptance towards thisstandardization strategy is rather positive.
ii
 
 
TABLE OF CONTENTS
1
 
 INTRODUCTION.............................................................................................................1
 
1.1
 
Background..........................................................................................................................1
 
1.2
 
Statement of the problem....................................................................................................2
 
1.3
 
Statement of the purpose.....................................................................................................3
 
1.4
 
Research questions...............................................................................................................3
 
1.5
 
Delimitation..........................................................................................................................3
 
1.6
 
Structure of the report.........................................................................................................5
 
2
 
 RESEARCH METHODOLOGY ......................................................................................6 
 
2.1
 
Choice of topic......................................................................................................................6
 
2.2
 
Choice of research method..................................................................................................6
 
2.3
 
Research Design...................................................................................................................7
 
2.4
 
Research approach to data collection.................................................................................7
 
2.4.1
 
Primary data....................................................................................................................................7
 
2.4.2 Secondary data................................................................................................................................8
 
2.5
 
Questionnaire.......................................................................................................................8
 
2.6
 
Interview with Customer Service Ikea, Shanghai.............................................................9
 
2.7
 
Target group.........................................................................................................................9
 
2.8
 
Sampling...............................................................................................................................9
 
2.9
 
Case Study..........................................................................................................................10
 
2.10
 
Validity and Reliability......................................................................................................11
 
3
 
THEORETICAL FRAMEWORK...................................................................................12
 
3.1
 
Marketing mix....................................................................................................................12
 
3.1.1
 
Product..........................................................................................................................................13
 
3.1.2
 
Price..............................................................................................................................................13
 
3.1.3
 
Promotion......................................................................................................................................13
 
3.1.4
 
Place..............................................................................................................................................13
 
3.2
 
Standardization..................................................................................................................14
 
3.3
 
Culture and consumer behavior.......................................................................................15
 
3.3.1
 
Hierarchy of needs........................................................................................................................15
 
3.3.2
 
Individualism and collectivism.....................................................................................................16
 
3.4
 
Chinese Culture..................................................................................................................17
 
3.5
 
Familism..............................................................................................................................17
 
4 
 
Facts on Ikea, China and Shanghai...............................................................................19
 
4.1
 
Description of Ikea.............................................................................................................19
 
4.1.1
 
Ikea history....................................................................................................................................19
 
4.1.2
 
Ikea in the world............................................................................................................................19
 
4.1.3
 
Ikea’s vision..................................................................................................................................20
 iii
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