Entering the Japanese Market : Similarities and Differences between two Swedish firms

Abstract: In this thesis we investigated the differences and similarities between a big and a small Swedish firms’ market entry process into Japan. This was done by studying the two chosen companies, IKEA and Haglöfs respectively. We conducted our research using a case study collecting data from primary and secondary sources. The primary data was collected by using a semi-structured interview approach while the secondary data has been collected through searching for relevant sources. We concluded that the main similarities between IKEA and Haglöfs were the firms’ extensive use of network relationships in the Japanese market, were both utilized employees with Japanese market knowledge. The main differences, on the other hand, were mainly the enthusiasm shown from actors, such as governors, consumers and municipalities, that actively encouraged IKEA’s market entry. The scope of the entries was also different, with the size of the IKEA product catalogue and the construction of stores requiring more governmental approvals and lengthy processes. IKEA’s extensive international experience gained from earlier market entries were also something which set the two entries apart.