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Foreign Market Entry Strategy & International Franchising: Doing Business in Morocco (Management Project)

Today’s market environment is increasingly growing due to the economical globalization; with international trade, financial transfers and foreign direct investments the economy is becoming highly interconnected. The advances in communication and transportation technology combined with free-market ideology, have given products and services remarkable mobility.

Nowadays, international companies are focusing on opening the world markets to their goods especially in emerging markets in order to take advantage of these markets opportunities and be part of its developing and growing infrastructure.

In order for international companies to enter foreign markets, there are a variety of factors to consider while planning a strategic approach to reach new customers and differentiate their products and services from national and international competitors within the chosen market.

This thesis will focus on featuring the significant factors that could affect companies entering the Moroccan market and forms of internal and external factors that could affect IKEA’s entry into the market as well as it will highlight the main concepts that managers should consider when planning to enter the Moroccan market. The study was based on theoretical framework combined with empirical findings that were collected from secondary data such as annually reports and trade documents as well as through conducting in-depth interviews with IKEA’s managers to increase the study reliability and validity.

According to the study findings and analytical results, the conclusion is that IKEA will not face major internal and external obstacles that would affect their operations significantly. There are few factors that could arise while entering the Moroccan market but from a holistic view this minor interferences can be overcame through IKEA’s full awareness of the market and their application of a vigorous, flexible and convenient strategic approach.
Source: Linnaeus University
Author: Akhsassi, Rania

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