Ikea Expanding to the Uae

Ikea Expanding to the Uae

  • Submitted By: choko
  • Date Submitted: 06/13/2010 3:22 AM
  • Category: Business
  • Words: 10671
  • Page: 43
  • Views: 1




Mengya Guo 105805
Denis Kardjaliev 115983
Parwez Habib 121673

Task distribution

Mengya Guo:
International scope
Demographic data
SWOT analysis
Retail formula

Denis Kardjaliev:
Market analysis
Poter’s 5F
Business format
Target groups

Parwez Habib:
Macro economy
International exposure
Executive Summary
Conclusion & recommendation

Executive summary

The consulting agency (Parwez n Partners) was asked whether or not an expansion of Ikea to the United Arab Emirates would be advisable.

There is a shift towards third sector business and also IT-businesses and other modern technologies have been booming over the last few decades. This positive development in the economy has been one factor leading to more stability in the United Emirates currency Dirham.

The GDP is very high, it can be compared to rich countries in Europe and USA and the unemployment rate in the United Arab Emirates is very low.

Wealth is spread widely among the UAEs population because of the natural resources (oil, Gas). But there are also people from India, Pakistan, Nepal and so on who are not that rich, they live in the UAE especially in Dubai, in order work and earn money for their families.

One additional economics sector of the UAE is tourism. The UAE is spend a lot of money on hotels, islands and a lot of luxury high quality articles, in order to attract tourists.

UAE is a kingdom like Sweden but the difference between those two kingdoms are that the king of the UAE can decide on every topic and the Swedish royal family cannot decide about political issues or economical issues. But the laws of the UAE are very profitable for foreign investors.
The infrastructure of the UAE is very good which is an advantage for the economy. The...

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