Evaluate the risks face by Ikea when they first ventured into the country

1. Transportation cost

It takes 1 to 2 months to ship from Europe to another

country, and the transportation cost is huge.

2. Time consumption

This brings me to my next point of the the lengtg of time it takes to ship items from country to country. Therefore, if an item has run out of stock, it will take at least 2 months for ikea to restock the item in order for customers to buy.

3. Difference in countrys taste

In countries such as Japan, IKEA has to customize

products and packaging according to their tastes, in the earlier years of IKEA Rising its brand to other countries, they have failed to propose a

standardised design and packaging in the past. IKEA had suffered with this problem as it increased their fixed costs in terms of exhaustion of their

living costs. Fortunately, IKEA finally found the solution and they now maintain standardised product design and pay attention to the economy.

3. International competition

IKEA's business performance in the UK and US markets is particularly encouraging. By

expanding overseas business, IKEA has increased its competition with international businesses

and many competitors. IKEA must customize and standardize its products to attract customers, this is the disadvantage that IKEA has but in order to gain customer attraction they must understand the markets of other countries in order to compete with

them. IKEA's business has been successful in Europe, but it has faced many challenges in the

Chinese market. After entering the Chinese market for 8 years, only 4 stores can be opened, and

the sales in the Chinese market are less than 10% of its outlets.

Question

What is solution that IKEA do to manage this problem?