Opportunities in China that Might Be Different in America

Week 2 Discussion: IKEA & Prices Around the World



  • PESTLE Analysis: PESTLE is an acronym for the external environment. Please read more here. Refer to the examples provided under ‘pestle analysis’.




Please show evidence of this week’s resources – must include in-text citations and references.

Here are some articles that will provide some background.

1) China – initial entrance



2) China – last 2 or 3 years


When IKEA entered the Chinese market, it dropped the prices on its products significantly, but only in that market. Prices in Europe, the United States, and the other Asian countries stayed the same.


Q1– Based on the macro environment (PESTLE), and microenvironment (market, competition, industry), identify the elements that might create opportunities in China that might be different in America. You may discuss the original entrance and/or the more current situation – feel free.

HintYour discussion should include all relevant elements of the microenvironment (market, competition, industry) and external Env.  Political, Economic, Social, Technological, Legal/Regulations, Environment (i.e., natural resources, climate, etc.).  PESTLE.


Q2 Identify at least 1 issue from each of the PESTLE elements (above) that might create an opportunity and/or threat to IKEA in America.

Note: IKEA sells Scandinavian furniture (cool designs) that are competitively priced with boxed furniture consumers find at Target and other retailers. Take a look:   https://www.ikea.com/us/en/