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

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.