国际贸易方向毕业论文模板正文

{国际贸易}国际贸易方向毕业论文模板正文Chapter1Introduction1.1ContextWiththerapiddevelopmentofeconomy,franchiseemergesastheproductofmodernindustrialrevolution.Asinnovativewaysoforganizationandmanagement,thefranchise,originatedfromtheU.S,quicklyspreadoutworldwidesimplybecauseitcanbepracticedbeyondrestrictionsofcountries,cultures,andindustries.Statisticsindicatethattherewerenearly16,000franchisesystemsinoperation,withtheirpartners’amountto160million.TheglobalfranchisingindustryhasasaleofmorethanonetrillionU.S.dollarsannually,providingasmanyas20millionjobs.China,beingincreasinglyattractiveintheinternationalfranchisemarket,isnowlookingforopportunitiestoinvestinprofitablefranchisingprograms(中国投资咨询网,2007中国特许经营业研究咨询报告,URL:<27Dec.2006>).In2004,China’stop100franchiseenterprisesachievedatotalsalesvolumeof496.8billionyuan,rising39%paredwiththatof2003.Employeesinfranchisingpaniesreached810,000,increasedby27%fromthe640,000ayearbefore.Andin2005,thesalesvolumecontinuallyflowsupto236.53billionyuanfortheformerhalfyear,grownby29.9%fromthatof2004(中国投资咨询网,2006年中国连锁经营行业分析及投资咨询报告,URL:<10Dec.2006>).FranchisinginChinahasbeenescalatedintotheeraofhigh-speeddevelopment,albeit,manyproblemsalsoexistbehindtheprosperoussurface.Culturecollision,laggingadministrativestrategiesandinefficientlogistics,challengedthefranchisesysteminChina.Forthehouse-furnishingindustryespecially,themarketisstillfarfrommature.WiththepurposetopromoteChinesehouse-furnishingindustries,thisstudytriestoexplorethesuccessfulworldwideexpansionofthefamousSwedenfurnitureretailer—IKEAanditsimplicationswhichChinesehouse-furnishingindustriesmightbenefitfrom.1.2SignificanceoftheStudySinceWTOgaveitsadmissiontoChinafiveyearsago,Chinahasgraduallyopenedwideritsmarketstomorefields,house-furnishingindustryparticularly.WhenIKEAfromSwedenopenedtheforthchainsupermallinChengdulastNovember,itsretailvolumeinChinaimmediatelyamountsto1.6billionyuan(丁鹏飞,许凤婷，2006).Itssuccessfulfranchisingmanagementrendersanewpromisingwaytodevelophouse-furnishingindustry,especiallyforthosewhoarealsointheprocessofworldwideexpansionandtowardstheinternationalmarket.Throughchainstoresandfranchising,enterprisesengagedinhouse-furnishingmayfindtheiraccesstotheinternationalmarketmoreeasily.However,inthisprocess,risksalsoby-produced.Thus,atheoreticalanalysisoffranchisemanagementandthecasestudyofIKEAwilldefinitelyoffersomehelpforthosewhowouldliketodevelopinhouse-furnitureindustrytogainabetterunderstandingoffranchisemanagement.Thestudymayprovidesomehindsaswelltothosewhoevenwouldliketoadoptthispromisingwaytodeveloptheirownbusinesswhenfacinginternationalopportunities.ByaninsightfulstudyofIKEA,theaddressofthestrategiesofIKEAadaptedinmarketing,logistics,price-controllingandcultureinthispaperareboundtobefruitfulexperiencetofranchisemanagementforboththepotentialcustomersandtheprospectiveChinesehouse-furnishingenterpriserswhointendstoseekopportunitiesininternationalmarkets.1.3ShapeofthePaperThisdissertationwillbedevelopedinsevenchapters.Chapter1,theIntroductionpart,whichwillbeinitiatedbyintroducingthecontext,researchproblems,andsignificanceofthestudy.Chapter2isfunctionedtodefineandcategorizecharacteristicsoffranchisemanagement.Thischapteralsopresentatentativeanalysisoftheadvantagestoboththefranchisersandthefranchisees.Chapter3willpresentananalysisofsomefactorssuchasmanageableandunmanageablefactorsthatimpactonthehouse-furnishingindustry.Chapter4willmainlyfocusontheanalysisofmarketingstrategiesofIKEA.Itsuniquelogistics,culture,etc.,whichcontributemuchtothesuccessofIKEA.Chapter5willstatethecurrentsituationofChinesehouse-furnishingindustryandpinpointssomeinspirationsformIKEA.TheconcludingchaptergeneralizesthesecretofIKEA,inspirationsfromIKEAtoChinesehouse-furnitureindustriesandsometentativesuggestionsaremadetothosewhoaregoingtotakefranchisemanagementininternationalmarkets.Chapter2CharacteristicsofFranchiseandItsAdvantagesThischaptermainlydiscussesthedefinitionandcharacteristicsoffranchiseandtheadvantagesoftakingthefranchisingsystemasawaytoexpandmarketinternationally.Someuniquemanagementconceptswillalsobegivenproperattentiontosoastogeneralizesomefruitfulimplicationstohouse-furnitureindustries.2.1DefinitionAccordingtotheInternationalFranchiseAssociation(IFA),franchiseisacontractualrelationbetweenfranchisorandfranchisee.Asperthecontract,thefranchisorprovidesauniquebusinessconcession,guidanceandassistanceintheaspectofstafftraining,organizestructuringwhilethefranchiseemakecertainpaymentsinreturn.(中国品牌网,什么是特许经营,URL:81.<31Oct.2006>).WhiletheChinesegovernmentgivesanotherversion:Alicensegrantedbythefranchisortooperateaparticularbusinessusingthefranchisor'sname,wherethefranchisorprovidesassistancetothefranchisee,exercisescontinuingcontrolandreceivesperiodicfinancialconsiderationfromthefranchiseefortheservicesprovided.(Century21,特许经营概念，URL:jmzx_<25Oct.2006>).Yet,accordingtotheEuropeFranchiseAssociation,franchiseisAformofbusinessorganizationinwhichafirmwhichalreadyhasasuccessfulproductorservice(thefranchisor)entersintoacontinuingcontractualrelationshipwithotherbusinesses(franchisees)operatingunderthefranchisor'stradenameandusuallywiththefranchisor'sguidance,inexchangeforafee.(Investorwords.WebFinance,Inc.Franchise,URL:<19Oct.2006>)Fromtheabovedefinitionsforfranchise,itcanbeidentifiedthatregardlessoftheunderlyingdifference,thecoreofthosedifferentversionsliesin:franchisorprovidesassistance;franchiseemakespaymentinexchangefortheusingofbrand,franchisorcontrolsoverthefranchisee’sbehaviors.Therearebasicallytwotypesoffranchisewhendividedbythedevelopmentstageoffranchised,whilethemajordifferenceslieinthescopeoffranchisingright（谷素华,2005）.1.Theearlytypeoffranchise,calledtrademarkproductsfranchiseorproductsdistributionfranchiseisthatthefranchisorempowerthefranchiseecertainrightstomanufactureandoperateproductsofaspeciallyappointedbrand.Thefranchisorgivesconcessiontoafranchiseethathasbeenprovidedintellectualpropertyrightssuchastechnical,patentsandtrademarksinthescopeoftherighttouseonthebusinessactivitiesasstipulated,butisnotengagedinproductionforthestringentrequirements.Typicalexamplesofsuchformsoffranchiselieinautomobiledealers,gasstationandbeveragecansandmarketing.Thismodeofdevelopmentattheinternationallevelhasbeendecreasedandgraduallyturnedtoevolutestowardsthemanage-patternfranchisemodel.2.Themanage-patternfranchisemodelisasecond-generationfranchise,andthefranchisethatpeoplearefamiliarwithfallsintothiscategory.Itrequiresthefranchiseenotonlyhandlewiththefranchisor’sproductsandservices,butalsooperatetothesamelevelofqualitystandardsandbusinessobjectivesasthefranchisorstipulated.Entryfeesandsubsequentpaymentforkeepingtheirrightspaidbythefranchiseeprovidethefranchisorcapitalsenoughfortraining,advertising,researchanddevelopmentandfollow-upsupport.Thismodeliscurrentlybeingdevelopedrapidly.2.2CharacteristicsofFranchiseAsamatteroffact,franchiseistheexpandingoftechnologyaswellasbrandvalue.Itinvolvesnotonlyvisibleproducts,butalsoinvisibleservicessuchaspatentright,continualservicesandnecessarytraining.Franchiseusuallyfeaturesprehensiveness,uniquebrandsense,ongoingroyaltyfees,instancehelpandstrategies.2.2.1.ComprehensivenessThesystemandbusinessmethodmustbecapableofbeingpassedon;otherwisethefranchiseecannotgetfullunderstandingoverthesystem.Thefranchisedbusinessmustbethoroughlytestedandproveninpracticetobesuccessful.Noonewouldjoinafranchisesystemwhichhastostruggletosurrive.Notuntilthefranchisorhastestedhisideasinthemarketplaceandprovesthatitisefficiencythatwillhewinthefollowupjoiners.Therefore,theexistingfranchisesystemmusthavesomeuniqueadvantagestowinashareofthemarket.2.2.2.UniqueSellingPointsThefranchiseshouldhavesomeuniquepointssuchasbranding,themethodorsystemofoperation.ThecostsandreturnsmustbeworthwhilefortheFranchisorandallthefranchiseesthatoperatewithinthefranchisesystem(DieWelt,1995).SetMcDonalds’asanexample.Comparedwiththerestfastfoodrestaurants,McDonald’sisnodoubtthebiggestintheworld,whosesellingpointisbrandvalue,whichalwaysmeanscleanandfortableenvironment,highqualityofservicesandstandardflavoraswellasprices.ThoughquitealotoffastfoodrestaurantstodaycopythemodelofMcDonald’s,itstillwinsthelargestcustomergroupduetothedevelopedoperationskillsandcontinualinnovation.2.2.3.OngoingRoyaltyFeesThefranchiseewouldmakeapaymentofaninitialfeetopurchasethefranchiseaswellasongoingfeesformaintainingit.JustlikeinIKEA,franchiseesusuallypaya3percentofroyaltyfeestotheInterIKEAgroup,whoplaysasthefranchisor.2.2.4.ImmediateHelpandAssistanceTheFranchisoroffersimmediatehelpandassistancetothefranchisee,whileheshouldalsoprovidecontinuingsupportandguidance.Tobetterimprovethefranchisees’quality,thistermisusuallycontainedinthefranchiseagreementtoguaranteethatthestandardservicesorproductsareavailableineachstore,whichinturnhelpinbuildingtheheadquarters’brandvalue（新概念教育，加盟新概念,URL:jmzx_<25Oct.2006>;世界经理人,特许经营的优势,URL:.200504/5187.htm<9Nov.2006>;DouqHood,MarileaS.Hood,TheFranchiseAdvantage-benefitsanddisadvantagesoffranchisebusinesses-BriefArticle,URL:articles/mi_m0DTI/is_7_28/ai_3<1Nov.2006>）.Forthefranchisor,businessscalecouldgainarapidexpansionandfinancialriskcouldbebroughtdownaseveryoutletisfinancedbythefranchisee.Centralizedmanagementandscaleeconomyrendersthefranchisoramoreefficientwaytocutcostsandsaveenergy.Whatismore,franchisehaswonclearsupportfrommostcountriesandareasroundtheplanet.Thusthefranchisorhastheopportunitytoexpandinternationallywhentheygraduallyenhancecorepetitiveness.Chapter3RiskAnalysisoftheFranchiseManagementinHouse-furnishingIndustryThefranchisehasprovidedaspecialbusinessformatforboththefranchiseeandthefranchisortotaketheminimumrisks.However,itdoesnotnecessarilymeanthattheminimumriskequalstonorisk.EvenintheUS,wherethelegitimateenvironmentforfranchiseisrathermutualparedtothoseofothercountries,thereisstillaround30%or40%offranchisingstonesthatendupinflatwithinfiveyears,accordingtotheUSAssistantMinisterofCommerce（胡楷,2003）.3.1FactorsthatImpactontheHouse-furnishingFranchiseAsaspecialbusinessformat,franchiseunderwentasignificantdevelopmentacrosstheworldsinceitscameintobeing.Andforthehouse-furnishingfranchise,therearemanyfactorsinvolved.Firstofall,locationisalwaysthemostimportantelementinthehouse-furnishingfranchise,becausethisindustryisofcertaindifferencefromthosefallsintootherkindsofindustries.Shoppingconveniencesarealwaysconsideredasthehighestprioritybypeoplewhowanttodotheirpurchase,thoughsomeotherfactorswouldalsobetakenintoconsiderationsuchaspriceandquality.Secondly,thelogisticalchannelmustbemutualenoughinboththelocalareaandabroaderinternationalarea.Thatisanotherimportantfactorthatwouldimpactonthehouse-furnishingfranchise.Everylinkpointofthewholechannelsuchasresourceavailability,thedeliverychannel,etc,mustbecheckedsothatthewholeprocessofthegoodscouldbeproducedanddeliveredinanefficientway.Thirdly,thebrandrecognitionshouldbecarefullyexaminedforthesakeoffuturedevelopment.Incasethatbrandisnotsopopularincertaincountriesandareas,beingapartofthefranchisesystemmaybejustliketakingarisk.Thoughthesamebrandcouldbefamousinsomeotherplaces,itdosenotnecessarilymeanthatexploitanewbusinessunitwouldwinthesamepopularity.Ofcourse,thereareotherfactorsthatwouldmoreorlessaffectthedevelopmentofthehouse-furnishingfranchisesuchasthemacroeconomicsituation,thelocaldistinctivecultureandthepoliticalenvironment,whichwouldbediscussedindetailaspotentialrisksinthefollowingsections.Generallyspeaking,therearetwokindsofrisksforthefranchiseinhouse-furnishingindustry.3.2ManageableRisksThoughbothpartieswinfromthefranchisesystemaslesshumanresourcesareneeded,risksalsochallengebothparties.3.2.1RisksfortheFranchiseea.Autonomyrightsarefacedwithconsiderablerestrictions“Thebiggestpricethatthefranchiseepaidinjoininginthesystemgoestothelostofitsautonomy”(BernachotChristine,1994:101).Independentpany,thefranchiseecouldnotpossessapletecontrolovertheirownpanies.Inordertorenderthemodityandservicetothestandardlevel,theheadquarterhastherighttocontroloverthefranchiseewithconsistentstringentrequirements,whilethefranchiseehastochalkupguidanceandassistancefromtheheadquarter.Everypointincludingthedecorationofthestore,thearrangementofthemodities,thebusinessequipmentandmodeofoperation,hastobeinaccordancewiththestyleandtherequirementoftheheadquarter.Thelackofuniquenessandautonomywouldmeanthelossofabilitytoadapttothechangingmarket.Onlypursueof"decent"styleswouldnotenablethefranchiseetomakeadjustmentsinaccordancewithchangesinthemarketpriceandmarketingstrategies.b.Operationstatusisimplicatedbythefranchisor’sdecisionJoiningthefranchise,theinvestorslinktheirgainsandlosseswiththefranchise,andthesuccessorfailurewouldbeaffectedbytheheadquartertoalargeextent.Oncetheheadquartersuffersproblemsorlaggingsupport,thefranchiseewouldbeimplicated(胡卓红,2001).Themistakesmadebytheheadquarterindecision-makingoftenleavetherestpartofthesystemsufferlosses.Inaddition,thefranchisedevelopstoofastforthefollow-upservicestokeepupwith.Forexample,acertainfranchisewasingoodbusinesssituationforstandingataratherconvenientlocation,however,theover-fastdevelopmentandthelimitedcapacityofthedeliverysystemexclusivedistributionsystemstonormaloperation.Thus,supplygoeswithoutguarantee.Andforthehouse-furnishingindustry,inwhichmoditiestendstobeoflargesize,supplyanddeliverymeanseverything.c.Over-standardizationoftheProductsandServicesareShortofInnovationItiseasytoadoptauniformmodeofoperationandprocurementofsupplies,butlookingfromanotheraspect,thisover-standardizationoftheproductsandservicesarelackofinnovation.Providingthesamesetofproductsandservicesforyearslongwillincreasinglylosetheirattractivenesstocustomers.Althoughthefranchisormaytryitsbesttocatchupwiththetide,itisdifficulttoconductthroughoutthewholesystemwithinashorttime.Whatismore,thefranchisorusedtoproceedingfromamacro-viewanddonottakeintoaccountthespecificcircumstancesofaparticularfranchisee.Asdifferentcountriesandareasmayhavedifferenttastestowardshouse-furnishingmodities,over-standardizationwouldleadtodifferentsalessituationwithsomepartsmakingafortuneandsomeothersaresuffering.d.WithdrawfromthefranchisesystemisdifficulttohandleItwouldsufferenormouslossifbreachcontracts.Fortheirownprofitsake,thefranchisorswouldnoteasilygivepermissiontothequittingfranchisees.Thesetwopartieshavetoresorttolegalproceduresprovidedthefranchiseeinsistsonwithdrawing,whichistime-consumingandfinancial-wasting(孙喜平,2001).3.2.2RisksfortheFranchisora.MaintainingcontrolisofconsiderabledifficultyAsthefranchiseealwaysattemptstochangehisproductsorservicestosuitthemarketneedswithoutthepermissionofthefranchisor,itisdifficulttomaintainabsolutecontroloverallthestonesforthelackofenergyandinformationlags.b.ReputationoftheheadquartermaybeaffectedbyinpetentfranchiseesAftersubmitanamountofentry-feeasrequired,anypeoplecouldbeafranchiseewithoutdemonstratingitsmanagingability.Whetherornotthisfranchiseecouldrunitsshopwellwoulddirectlyaffectthereputationoftheheadquarter.Incasethefranchiseeismorallychallenged,customerswoulddrawnegativeimpressionontheheadquarterratherthanthesingleindividual.c.ViciouspetitionexistsbetweenfranchiseesIncasethatafewfranchiseesarenearingeographiclocationandduetothesimilarproductsandservices,theywouldprobablybeinvolvedinfiercepetitiontostayontheadvantageside.Oncethepetitiongoestoofarfromanappropriatedegree,suchasdrawingthecustomers’attentionbyendlesspricewarorinhenceloweringthequalityoftheproductsorservices,viciouspetitionemerges.Neitherofthesewillbehealthypracticetothedevelopmentofthebusiness.3.3Non-manageableRisksa.CulturalDifferencesInhouse-furnishingindustry,culturedifferencecountsmuch.Andthemostapparentwayliesinthedifferentunderstandingtowardsbeautyandculture.Forinstance,theGermanwouldpreferamoresimplerigorousstylewhiletheFrenchwouldfindunabletoextricatethemselvesimmersedinaromanticsense.Thus,thesamestyleofmoditywouldnoteasilygainthesamelevelofpopularityacrosstheworld.Toexploitanewbusinessunit,theheadquartermustbeartheriskofundergoingadifficultmarket(杨晨,鲁茅茅,2001).b.PoliticalEnvironmentNotallcountriesontheplanetadoptingthesamesocialmechanism,somepracticedcapitalismastheirstatepolicywhileotherssticktomunism.Consequently,governmentalattitudestowardsinternationalfranchisewouldbevariedasperthepoliticalenvironment.Inaddition,businesslawsalwaysrepresentthegovernmentattitudes.Forinstance,thoughasocialismcountry,certainareasinChinaformulatedspecialeconomicpreferentialpoliciesforforeigninvestors,knownasthespecialeconomiczone.Toinvestafranchiseinsuchanareaisbeyonddoubtwisertoriskinotherpartsofthecountry.Whetherornotitisprofittoopenupanewmarketinanewcountryliesnotonlyintheobjectiveenvironment,butalsoinsuchsubjectpoliticalnorms.c.EconomicalLevelWhilegovernmentalinfluencesareconsideredwiththehighestpriority,theeconomicalstatusshouldalsobecheckedcarefullybeforemakinganinvestment.Postulatingthatacertaincountryfeaturespreferablepoliticalenvironment,goodtastesforthefranchisinghouse-furnishingmoditiesandgeneralmetropolisculture,however,itspurchasingpowerisquitelowfortheserelativelyhigh-pricegoods,anditisstillnotanidealplacetoinvestin.Theeconomicallevelissuchanimportantfactorthatitaffectsmanyotherjuncturesofthefranchisesystemratherthanthesinglesales,resourceavailability,lawmaturity,tonamejustafew(大学生创业联盟,论特许经营发展制约因素,URL:4/48102.s<19Nov.2006>).Toinvestfranchiseinternationallyinhouse-furnishingindustry,albeiteasytodevelopthaninatraditionalway,willstillfacerisks.Manageablerisksareonepartofthestory,whichcouldbeavoidedwithextremelycarefulandefficientadministrativeskills.Non-manageablerisks,ontheotherside,arenotsoeasytohandlewith.Onlythroughjointeffortofboththefranchisorandthefranchisee,couldthefranchisesystemavoidtherisksmentionedabovetoamaximumlevel.Chapter4CaseStudyofIKEAWhenreferringtoIKEA,mostpeoplemaythinkofitsspecialdesignoftheproductsandsoftenvironmentofthemall.WhenlotsofpeoplearemakingtheirwaystoandpurchasesinIKEA,questionsmaybeemergedaswhyIKEAcouldattractsomanypeople.ThesecretsofIKEA’ssuccesswillbeanalyzedinthischapter.4.1IntroductionofIKEAIKEAisaprivately-held,international,low-costhomeproductsretailer.Itiswarehouse-stylesupermarketchainsfoundedinSweden.Thepanydistributesitsproductsthroughitsretailoutlets.Thechainhas250storesin34countries;mostoftheminEurope.Whileamongthem,morethan20storesopenedduring2005（路德平,2004）.DespiteIKEA’sSwedishroots,theowneroftheIKEAtrademarkandconceptisaDutch-registeredpany,InterIKEASystems.Ofthe250IKEAstores,221arerunbytheIKEAGroup.Theremaining29stonesarerunbyfranchiseesoutsideoftheIKEAGroup,whicharemainlyintheMiddleEastandAsia.InterIKEAearnsitsmoneyfromthefranchiseagreementsithaswitheachIKEAstore.Storespaya3%royaltyonallproductssoldtothebrandowners(Wikipedia,IKEA,URL:.orgIKEA<15Jan.2007>).IKEAfurnitureiswellknownforitsmodern,utilitariandesign.MuchofIKEA’sfurnitureisdesignedtobeassembledbytheconsumerratherthanbeingsoldpre-assembled.IKEAclaimsthispermitsthemtoreducecostsanduseofpackagingbyshippinginsteadofairfreight;thevolumeofabookcase,forexample,isconsiderablylessifitisshippedunassembledratherthanassembled.Thisisalsoapracticalpointformanyofthechain’sEuropeancustomers,wherepublictransportismonlyused;theflat-packdistributionmethodsallowforeasiertransportviapubliconesfromthestoretoacustomer’shomeforassembly.4.2IKEA’sInternationalDevelopmentEversincethefirststoreopenedoutsideSwedenin1964,IKEAgotonthewayofrapidexpandingthroughouttheworld.AllofitsestablishmentarelookedandoperatedasintheSwedishheadquarter,whichservesasamodeloftypicalIKEAwarehouse.Andnowthechainhas250storesin34countries.4.2.1DevelopmentacrosstheWorldIn2004,IKEAopened13newstoresinternationally,withitsglobalturnoveramountsto12.8billioneuros,increasedby13%paredwiththatof2003.Andin2005,IKEAmadeitsdebuttoTurkey,andstillplanningtoaddbythreestoresinthefollowing4years(慧聪家居,宜家2005年春挺进土耳其市场，URL:.hc360./001/2545.htm<23Jan.2007>).AstheSwedishmediareleased,asearlyasinApril5th,2004,the‘lonelyheroes’BillGates,whohasbeensittingastheworld’srichestmeninnumberoneover10years,methispetitorandwastakenplacebytheSwedishfurnituremanufacturer(佚名,宜家创始人：我卖家具能超过微软盖茨做首富,URL:.2005-01content_.htm<6Feb.2007>).4.2.2DevelopmentinChinaThetoppurchasingcountryofIKEAisChina.ItisthenewbigpotentialmarketforIKEA’sexpandingaslivingstandardsimprovedinChinaandthegovernmentopensupthepropertymarket.Sointeriordecoration,designandDIYarebeingpopularpastimesincertainkeymarketsinlinewiththeinterestinhomedecorationandimprovementhaseadesireforbetterqualitymaterials.Chinaisaspecialcountrywithtoomanydifferences.ButIKEAjusttookeverychancetheyhadeverseentopopin.Thegovernmentgotthetrendmovinginthelate1990swhen,hopingtogetstatepaniesoutofthebusinessofhousingtheirworkers,itproddedfamiliestobuyhomes,offeringlow-costmortgagesorbargainpricesonolderapartments.Coupledwithrisingurbanines,thatsetoffabuildingboominthelate1990sinBeijing,Shanghaiandothercities,withdevelopersputtingupforestsofhigh-riseswiththousandsofnewapartments(JOE.McDonald，IKEAleadsracetocashinonChina’shomeimprovementmarket,URL:<28Feb.2007>).Whatismore,theproductionbaseinShanghaiwillbepletedwithinoneyear,covering400acres.Suchaninvestmentcosts750000euros(about824millionyuan)hasmadeShanghaistandasthelargestlogisticsdistributioncenterintheAsiapacificarea,andChina’sbiggeststorageforforeigncapital.TodayfurniturepaniesinChinahavebeeIKEA'sbiggesttradingpartnersand30%ofIKEA'sproductsaremadeinChina.MostoftherawmaterialsalsoefromChinasoastorenderpetitiveproductprices(慧聪家居,宜家8亿砸向沪建亚太区首分拨中心,URL:.hc360./002/4950.htm<8Feb.2007>).4.3MarketingStrategiesofIKEAIKEAhasbeenprovedtobeasuccessfulbrandinternationally;thereforeitissafeforfranchisortotakepartin.andforIKEA,ithasstandardandcentralizedmanagementsystemwhichgivesitachancetorealizescaleeconomy.TheIKEAvision,businessideaandmarketpositioningstatementprovideaframeworkforallIKEAmarketingmunicationworldwide.TheIKEAnotionis"Tocreateabettereverydaylifeforthemanypeople."Anditsbusinessideais"Toofferawiderangeofwelldesigned,functionalhomefurnishingproductsatpricessolowthatasmanypeopleaspossiblewillbeabletoaffordthem”,acpaniedwithitsmarketpositioningstatementas"Yourpartnerisinbetterliving.Wedoourpart,youdoyours.Wesavemoneytogether."(,IKEAtheLeaderinhomefurnishingssales,URL:/?t=28170&highlight=ikea<28Dec.2006>)BycarryingoutthisnotionandencouragingcustomerstoexperiencetheIKEAconcept,theIKEAbrandisbuilt.TheIKEAbrandisthebestsummarizationoftheemotionalandrationalvaluesthatconsumersassociatewiththeIKEAtrademarkandthereputationofthepany(WarnabyGary,1999).4.3.1UniqueDesignIKEA’sspecialtymainlyliesinitsuniquedesignofproductsaswellastheone-wayoutletinits“largebluebox”.Thesestwofeaturestogetherplayasanattractivemodetocustomersallovertheworld.a.IKEA’sOutletsAsopposedtoatraditionalChinesehouse-furnishingretailstore,whichallowsaconsumertogorighttothesectionthatthegoodsandservicesneededaredisplayed,howIKEAoperatesisinspiringtomainlandretailers.ThefranchisingIKEAstoresareusuallyverylargeblueboxeswithfewwindows,somewhatlike4Sshop(seefig.1inAppendix1).Theyareoftendesignedarounda"one-way"layoutwhichleadscustomersalong"thenaturalway".Thislayoutisdesignedtoencouragethecustomertoseethestoreinitsentirety.Thesequenceinvolvesgoingthroughfurnitureshowrooms,housewares(market-hall),thenthewarehouse(seefig.inAppendix2)whereonecollectsflatpacksforproductsseenintheshowrooms,andthenarriveatthecashier'sstationtomakepayment(Wikipedia,IKEA,URL:.orgIKEA<15Jan.2007>).Customerscouldeithersitinthesofatohaveasense,orevenlayontheshowingbedtohaveagoodsleep.Noonewouldinterrupthimandcallhimtogetoff.Contrasttothe“hands-off”inmostnationalfurnituremalls.IKEAinviteseverybodytohavearealtouchandtogetarealsenseofitsproducts.Itencouragespeopletotouch,feelandtesttheproductsondisplaytoseehowtheywouldfitintotheirownhome(seefig.3inAppendix3).Initsshowingcloset,customersmayfoundsomeclothesalreadyhungin;onitsshowingdesks,booksareplacedwithcarefullydesign.Itimpressesthecustomerseverythingtheymayassociatewithintheirdailylife,fromasmallnailtoalargeoverallcupboard,fromabeautifullambtoasimple-stylearmchair.Thus,stayinginashowroom,onemayjustexperiencethefeelinginanewhome,andthatisexactlythefortandspecialtyofIKEA.Whatismore,theone-waylayoutrendersthecustomersnochancetomissanythingtheymaylike.ManystoresincluderestaurantsservingtypicallySwedishfoods,andbeveragessuchaslingoberryjuice.AswouldbeexpectedwithIKEA,onecanbuyIKEA'sspecialties,suchasSwedishmeatballsandassembleitathome,whichissimple,straightforwardfoodpreparation.MostIKEAstoresalsoofferan"as-is"areaattheendofthewarehousejustpriortothecashiers.Returned,damagedandformerlyshowcasedproductswhicharenotin"asnew"conditionsaredisplayedhere,andsoldwithadiscount,butalsowitha"no-returns"policy.IntheUnitedKingdom,thisisreferredtoas"BargainCorner".b.IKEA’sProductsThetraditionalChinesefurnitureusuallyappearsarathersinglefunctionsandstyle.Innovationsofvarietiesandnoveltiesareseldominvolved.Mostfurniturepanies,eventhosefranchisingonesinChina,providerelativelynarrowbusinessmanagementscope.TheIKEAproductrangeiswideandversatileinseveralways.TheIKEAproductrangeisdevelopedtobeextensiveenoughtohavesomethingthatappealstoeveryoneandtocoverallfunctionsinthehome.“Ithasnewproductsarrivingallthetime,seasonalthemes:playareasforchildren,specialeventsandagreatvaluefamilyrestaurant.Theproductsaremodernnottrendysotheyarepracticalenoughforeverydayuse”(IKEA,IKEAuploaded,URL:<15Jan.2007>).First,itisversatileinfunction.BecauseIKEAassumesthatcustomersshouldnothavetorunfromonesmallspecialtyshoptoanothertofurnishtheirhome,itgathersplants,livingroomfurnishings,toys,fryingpans,wholekitchens-i.e.,everythinginafunctionalwayhelpstobuildahome-inoneplace.Second,itiswideinstyle.ThedominantromanticatmospherecanbefoundinextensivechoicesincludingmanyminimalistsatIKEA.ThereisonethingIKEAdoesnothave,andthatisthefar-reachedortheover-decorated.Theyonlyhavewhathelpsbuildahomethatcanofferspaceforcozyandfortableliving.Third,beingcoordinated,therangeiswideinfunctionandstyleatthesametime.Nomatterwhichstyleonecustomerprefers,thereisanarmchairthatgoeswiththebookcaseandthatgoeswiththenewextendingtableandthenthatgoeswiththearmchair.Sotheirrangeisinextensivevarieties.Awiderangewithgoodformationandfunctionisonlyhalfthestory.Affordabilityhasaparttoplay--thelargestpart(路德平,2004).Alowpriceislinkedtothehappinessoffindingjustwhatoneneedsforhishome-thejoyofbeingabletoownitwithouthavingtoforsakeeverythingelse.ThatiswhyIKEAdesigners,manufacturersandpurchasersspendmostoftheirdaysfindingsolutionswhichmightresultinalowprice,andhenceabigvolumepurchasingmakesitevenlower.Ontheotherhand,thecustomershelp,too.Bychoosingthefurniture,gettingitatthewarehouse,transportingithomeandassemblingitthemselves,thepricescanalwaysbekeptataratherlowlevel.Asmentionedinchapter3,lackofinnovationoftenfollowstheover-standardizationoftheproducts.However,thiscouldneverhappentoIKEA.AlloftheIKEAproductsaredesignedindependentlybyitsown,thoughsomeareproducedintargetmarkettoreducecost.Itputsmuchemphasisonthe“simple,natural,fresh”stylewhichoriginatedformthenorthEurope.Inaddition,IKEAissocustomer-orientedthatitexertsgreateffortstoinventnewandsimplerproductsthatcouldbeeasilyhandled.Inaword,itbinedaestheticandfunctionalintentionstogetherwhilefeaturesthesimplestylestill(seefig.4inAppendix4