Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 32 , 10 November 2023


Open Access | Article

A Comparative Analysis of Standardized Inputs and Adaptation Innovation Strategies of Aeon Group and IKEA

Xiangming Gu * 1
1 Wuhan Textile University

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 32, 78-85
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Xiangming Gu. A Comparative Analysis of Standardized Inputs and Adaptation Innovation Strategies of Aeon Group and IKEA. AEMPS (2023) Vol. 32: 78-85. DOI: 10.54254/2754-1169/32/20231571.

Abstract

Aeon Group and IKEA, as the first foreign retail enterprises to enter the Chinese market, entered the market with the innovative competitive advantages of “standardized” business modes. Finally, a “re-standardized” business model was formed, and the chain expansion was developed. This paper studies and analyzes the development process of their localization explorations so as to explore effective ways for multinational companies to carry out long-term development of localization in China. The author summarizes and compares their respective development paths through a thorough SWOT analysis of IKEA and Aeon. Similarities lies in many aspects of these two companies, such as brand building, cooperation with locals, marketing strategies and so on. However, differences can be seen mainly through their respective ways to solve the problems due to their own existing circumstances which obeys their backgrounds. In general, both experienced standardized inputs and innovation strategies on adaptions in accordance with local policy, marketing circumstances, customer preferences and other factors are essential to these enterprises and a brand-new localized strategy is needed.

Keywords

IKEA, aeon, multinational companies, standardization, SWOT

References

1. Chen, Liping. A Study on Interactive Mechanism of Marketing Standardization and Adaption in Retail Internationalization. Research on Economics and Management, 12, 109-118. 2010.

2. Baek Jungyim. The process of the local adaptation of the global retailer and its step by step analysis — the case of toys “us” and carrefour’s expansion into Japan, Journal of marketing&distribution, 6(2), p.35-51. 2003-09.

3. Masayuki Furusawa, Chris Brewster. Japanese self‐initiated expatriates as boundary spanners in Chinese subsidiaries of Japanese MNEs: Antecedents, social capital, and HRM practices [J]. Thunderbird International Business Review. Volume 60, Issue 6. pp. 911-919. 2018.

4. Song Yin, Yao Jianfeng. The Localization of Human Resource Management of Multinational Enterprise: A Case Study Based on General Management (China), Human Resources Development of China, (24), 19-24+30. 2015.

5. Takeshi Hoshida. AEON Group’s International Strategy. The Development of AEON’s Asia Business Based upon Marketing Capacity, Journal of Japan Academy for Asian Market Economies, Volume 24, Issue 0. p81-89. 2021.

6. IKEA. https://about.ikea.com/en/about-us

7. AEON. https://www.aeonchina.com.cn

8. Bao Zhenshan. Research on Multinational Retail Enterprises’ Standardization Input and Localization Evolution Path in China-Taking AEON as an Example, Study and Exploration, 2020.

9. Fan Xiucheng, Leng Yan. Loyalty factor method of brand value evaluation, SCIENTIFIC MANAGEMENT RESEARCH, (05), p50-56. 2000

10. INTERBRAND. http://www.interbrand.com

11. Lu Yan. Ikea China Development — Trade-off between standardization and localization, North Economy, (10), p49-51. 2011.

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-085-1
ISBN (Online)
978-1-83558-086-8
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/32/20231571
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated