Franchising is considered the best way to gradually and long-term secure in attempting its goal which is to reach the many people, while taking a long-term view on sales and profitability. (IKEA).
After making a large amount of profit as well as the market share in Sweden, IKEA expands its business in Poland, Norway, UK, USA, etc. In 1998, IKEA started its retail operations in China. The law requests to form a joint venture. The venture served as a good platform to test the market, understand the local needs and adapt its strategies accordingly. It gives IKEA a better understanding of the Chinese apartments that were small and customers required functional solutions and need the company to make the slight modifications to meet their needs. For as in USA, modifications are needed as long as the furniture is stylist and functional, people bought it. Furthermore, store location is another thing to be considered. In USA, locations such as the suburbs or next to highways that are accessible by car are more desirable. However in China, locations such as the outskirts of cities or next to rail networks, that are accessible by public transport are more desirable. Moreover, promotion is also different in both countries. In USA, IKEA catalogue is the main marketing tool while in China, advertisement like social media and micro-blogging website Weibo, are more popular for the Chinese to see. By expanding its market internationally, this would make good business revenue for IKEA. .
IKEA needs to hire more staff and install more checkout service and not to open more stores until this issue is solved. These will help to reduce waiting times and advise shoppers on the showroom floor. During December 2004, IKEA used Beonic's Traffic Insight visitor flow system to ensure its checkouts are never short-staffed. The highly accurate Beonic sensors at each entrance track the number of people entering, in ensuring the sales attendants that the people who enter are the in the same position with the customers who exit.