Ikea Research Methodoligies

Executive Summary

Since 1997, Ikea has increased its number of stores by 51. The company comprised 165 stores as of August 2003, and there are plans to open a further 16 new stores in both fiscal 2004 and 2005. (Ikea United Kingdom, 2005) However, although the company opened 14 new stores in fiscal 2003, sales growth was only 2.7%, largely as a result of the depressed economic conditions across Europe, the company's core business region. (Global Market Information Database, 2004) Thus, it is clear that, in order to improve performance at a significant level, merely opening new stores is not enough. Instead, Ikea must assess its external and competitive environment, determine the key opportunities and threats which face it, and align its strengths and weaknesses to best counter the weak consumer market, and thus generate the strong growth it needs to remain a strong brand and presence in its chosen markets (Johnson, Scholes and Whittington, 2005)

Introduction

Ikea's business grew When a company decided to choice a geographical location for their new operations or services, the company not only has to look at the physical location and their raw material sources. It's also have to look at all the factors that affect the strategic specialize resources cost like government incentives, skilled human resources, technology infrastructure, transportation network, market-oriented economic growth, and quality of staff life. Other majors factors like stable financial and banking system, technology innovation will also be evaluate. We are going to look into each factor on how it's affect the decision of setting-up operations and services in Malaysia for two global companies: Dell and IKEA operations.

Based on the Malaysia Investment Development Authority, the country has created a technology incentive with competitive edge known as Malaysia Multimedia Super Corridor for information and communication technology sector. This special competitive edge has prompted other technology companies