Sunday, February 3, 2019

Week 5 _ (Percy) Chit Yan

According to the article "The internationalization of Danish furniture; A value chain perspective" by Lars Hedemann and Mogens Rostgaard Nissen, Denmark's furniture industry successfully dominated the international furniture industry. It has not always been the same before the 1970s because back then consumers considered and idealized furniture as long-lasting, durable goods as shown in the image whereas the nature of furniture nowadays is "somewhat more nuanced" (16). This article explains the process of internationalization for Danish furniture manufacturers. A classical model of internationalization is the one of Johanson and Vahlne according to whom there are two steps of internationalization. The first step is to increase involvement of the firm in the individual foreign country via sales and the second step is to establish operations in new countries. In case of Denmark, right after WW2 period, Danish furniture got a strong reputation because of foreign promotion of Danish furniture in the 1950s as well as the consumption trends prevailing at the time. Their reputation boosts their sales over time with foreign countries such as United States as in 1978, only 6.6 percent was consumed by US where as in 1990, the consumption by US grew up to 25 percent. As time goes on, the production costs for furniture increased. This leads some Danish furniture manufacturers to start operating in foreign countries with richer natural resources or lower production costs. These countries are primarily Poland, Estonia, Luthuania and Latvia.

Reference:

https://www.1stdibs.com/furniture/seating/lounge-chairs/midcentury-pair-of-safari-chairs-from-denmark-circa-1970/id-f_11438463/


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