International Business

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.

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.

Answer the following question. Q1. Analyze the entry and expansion strategies of B&Q in China.