Introduction

The proposal aims at identify and chart out an entry strategy for IKEA into South Africa. Known for its innovation IKEA aims at providing the middle class of the world with superior quality furniture at affordable prices. The Swedish giant who has made its foray into the Asian and European nations is looking at entering the African continent in line with its vision to become one of the leading global brands of the world.

The Geography

The company is planning to enter South Africa as a part of its international expansion plan and the South Africa has been chosen for the study because of the rise in the middle class income over the past decade and increased spending in home decor that has been seen over the last three years. IKEA is planning to source the raw materials locally and customized the designs with the help of local designs to meet the local needs. Also South Africa offers an easy entry for the organization into the African continent which would help them in expanding into other nations after making their mark in the country.