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International Business Dr. Aravind Banakar 9901366442 – 9902787224
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International Business CASE STUDY (20 Marks) The cases discusses, UK based home improvement retailer, B&Q's foray into China. B&Q entered the Chinese market in the year 1999 by opening a store in Shanghai through a joint venture with Home Decorative Building Materials Limited, a Shanghai based property developer. At that time, the Doit Yourself (DIY) concept had not gained popularity in China. Overcoming the initial challenges, B&Q was able to establish itself firmly in the Chinese market. B&Q modified its stores to suit the Chinese consumers and introduced the concept of ‘ Buyit Yourself.' The company's growth coincided with the rapid infrastructural development in the country, and increased activity in the housing sector.
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The rapid growth of the Chinese home improvement industry led several leading international companies like IKEA to expand their operations in the country. By late 2006, B&Q faced stiff competition from foreign as well as local companies like Orient Home. The case examines the entry and expansion strategies of B&Q in China and how the company is positioned to face increasing competition in the Chinese home improvement industry.
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Answer the following question. Q1. Analyze the entry and expansion strategies of B&Q in China.
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Global Study Solutions Dr. Aravind Banakar aravind.banakar@gmail.com www.mbacasestudyanswers.com 9901366442 – 9902787224
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