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Yu Yan Franchise Management of Internationalized House-furnishing IndustryCase Study of IKEAs Worldwide ExpandingAbstractFranchise, as a newly emerged mode of management, is undergoing rapid development while China is opening wider to the outside world. And to the Chinese house-furnishing industry, competition has been more intensified than ever before with more and more foreign capitals flow in. As IKEA, the worlds largest furniture retailer from Sweden entered into China in 1998 and managed to open its fifth outlet on the Chinese mainland in 2006, franchise has become the major expansion way for IKEA to win Chinas market. This paper has first of all made a theoretical explanation of the definition and characteristics of franchise management. It takes an analytic stance to pinpoints the advantages and risks for taking franchise as a business model. To illustrate, this paper has taken IKEA as a case study and explored the essential factors that lead the franchising IKEA to success. It revealed that aspects such as marketing strategies, prices system, promotion methods, logistics channels, together with company culture are the chief secrets that count for IKEAs sweeping achievement globally. Given the domestic house-furnishing industry are grave to be internationalized, this study proposed that Chinese house-furnishing enterprises should manage to get more enlightenments form IKEAs implication.Key words: franchise, house-furnishing industry, lower cost, IKEAs marketing strategies摘 要特许经营作为一种新兴的经营方式,正随着中国日渐开放的国门迅速发展。 而入世5年来,由于外资不断涌入,中国家装业市场竞争越发激烈。而自全球家居巨头-瑞典宜家家居1998年进入中国来,2006年已在中国开设第五家分店。特许经营已经成为宜家赢取中国市场最主要的发展方式。本文从理论上解释了特许经营的定义及特点,分析了特许经营的优势及同时存在的风险,并以宜家的成功作为研究案例,探讨了宜家家居通过特许经营通向成功的必备因素,并指出营销策略,价格体系,促销手法,物流渠道,企业文化等是使得宜家的风靡全球的秘密。最后本文指出,本土家装业要想国际化,则应努力学习宜家的战略手法。关键词:特许经营,家装业,更低的成本,宜家的营销策略AcknowledgementsThanks go to the Foreign Languages School of the East China Jiaotong University for accepting my proposal and the further paper in a courageous way.I would like to acknowledge my indebtedness to my academic supervisor Professor Ji Rongqin, vice dean of our school for her invaluable help. During the formulation of this paper, I confronted with some difficulties, where Professor Ji provided me with suggestions as well we courage. Thanks to her constant help, great patience and careful scrutiny; I have experienced a quality leap in my paper working and also a memorable time. ContentsAbstracti摘 要.iiAcknowledgementsiiiContentsivLists of TablesvChapter 1 Introduction11.1 Context11.2 Significance of the Study21.3 Shape of the Paper3Chapter 2 Characteristics of Franchise and Its Advantages42.1 Definitions42.2 Characteristics of Franchise62.2.1 Comprehensiveness62.2.2 Unique Selling Points72.2.3 Ongoing Royalty Fees72.2.4 Immediate Help and Assistance7 2.4 Advantages of franchise.72.4.1 Advantages for Franchisees82.4.2. Advantages for Franchisors9Chapter 3 Risk Analysis of the Franchise Management in House-furnishing Industry103.1 Factors that Impact on the House-furnishing Franchise103.2 Manageable Risks113.2.1 Risks for the Franchisee.11 3.2.2 Risks for the Franchisor.143.3 Non-manageable Risks14Chapter 4 Case Study of IKEA174.1 Introduction of IKEA.174.2 IKEAs International Development184.2.1 Development across the World184.2.2 Development in China194.3 IKEAs Marketing Strategies214.3.1 Unique Design224.3.2 IKEAs Price.264.4 IKEAs Promotion Methods284.4.1 Promotion Catalogue28 4.4.2 Shuttle Bus.29 4.4.2 Unique Style .304.5 IKEAs Logistics31 4.5.1 Flat Pack Furniture.31 4.5.2 Higher Efficiency.32 4.5.3 Multi-deliveries.324.5.4 Office Location334.5.5 Distribution Centers344.5.6 Long-term Agreements354.6 IKEAs Culture354.6.1 Standard-organized Management35 4.6.2 Customer-oriented Service.364.6.3 Local Culture-driven Formation37Chapter 5 Inspirations for Chinese Franchise House-furnishing Industry385.1 The Current Situation of Chinese Franchise in House-furnishing Industry385.2 Inspirations from IKEA395.2.1 Develop Brand Awareness395.2.2 Standardize Management System395.2.3 Cater to Local Culture405.2.4 Target at Potential Market41Chapter 6 Conclusion.42Bibliography44Aeppendix 1 Fig.1 Swedish-designed Lamps in IKEA Chain Stores51Aeppendix 2 Fig.2 IKEAs L
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