Preview

IKEA case

Good Essays
Open Document
Open Document
561 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
IKEA case
1. What are the core competencies and end products of IKEA? How are they linked with each other?
IKEa is a Swedish low cost home design firm. The core competencies of this firm are that you don’t get much service but you can buy the products at a low price. In every store of IKEA are there showrooms where you can see the furniture in a real life setting before you buy the products. After you went trough the showrooms and you found something for yourself. You can pick up the products in the warehouse downstairs. This warehouse has a self-service base, so you buy immediately your products and you don’t have to order them. The products that you can pick up in the warehouse are very flat packed so they are easy to transport. The end products of IKEA are home design product as furniture, decoration and kitchens. The competencies are linked with the end products in a way that it is easy to buy the products because you don’t have to order and the product are for sale for a verily low price.

2. How did IKEA diversify?
IKEA did diversify in terms of product variety and geographically. Those components are linked to each other. IKEA first started to expand European countries and after that they expanded outside Europe. The product variety of IKEA is huge, so there are products for every taste. Although, every country has a different so IKEA has to adjust their product for the needs of the people in different countries. Because of this strategy they have a market in a lot of different countries.

3. How did IKEA expand internationally? How has the firm maintained a focus on core competencies while simultaneously adapting to local needs in host countries?
IKEA expanded internationally in 1963 by opening the first international store in Norway. IKEA was during the ‘60s and ‘70s focussed on the European market. They kept using the same products and the same operational formulas in the following years in their European expansion. This finally went wrong by expanding

You May Also Find These Documents Helpful

  • Satisfactory Essays

    IKEA’s senior management has in the past pursued an aggressive expansion policy, but management is currently changing direction, adopting a slower rate of expansion and investing in existing stores. The company plans to increase sales by 10% a year to 2020, thereby doubling annual sales revenues. Management is concerned about how expansion in the BRIC countries, particularly India and China, is pursued. There are fears about preserving the…

    • 765 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ikea

    • 288 Words
    • 2 Pages

    IKEA should further expand in the United States and seek to focus on other countries, because they have been successful thus far. They should, however, be cautious of…

    • 288 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ikea's Swedish Ways

    • 362 Words
    • 2 Pages

    Currently, IKEA operates 25 stores in the United States and the U.S. accounts for 11% of their total 14.8 billion sales. IKEA's sales have jumped 10.8 billion since 1995 and continue to grow. IKEA's case proves that responding to local consumer tastes and preferences and dealing with pressures for cost reduction are effective when entering the global environment.…

    • 362 Words
    • 2 Pages
    Good Essays
  • Better Essays

    IKEA SWOT Analysis

    • 998 Words
    • 3 Pages

    3. Supply chain integration. IKEA is committed to long lasting relationships with its suppliers. In this way, the company can order large volumes and benefit from lower…

    • 998 Words
    • 3 Pages
    Better Essays
  • Good Essays

    In the 1980s, Ikea wanted to start doing business not only in Europe but all over the world, in the USA, Canada and Asia, for instance. According to the knowledge we…

    • 853 Words
    • 4 Pages
    Good Essays
  • Best Essays

    IKEA is known as the world’s largest international home product retail company. The compony established in Sweden by a 17 year old boy named Ingvar Kamprad in 1943 (Wikipedia, 2012). The company was ranked 44th in a list of the top 100 international brands by interbrand and has more than 220 stores operating in 41 countries with 29 trading service offices in 25 countries worldwide (IKEA, 2010). IKEA offers a wide variety of home furnishings of good design and high quality with the lowest possible price in order to make the products affordable for the majority of people through ready-to-assemble items. IKEA’s target customers are generally young low to middle income families who are looking for value (Dimitriadis, 2002).…

    • 3465 Words
    • 14 Pages
    Best Essays
  • Good Essays

    Ikea Marketing Analysis

    • 717 Words
    • 3 Pages

    IKEA was found in Sweden by Ingvar Kamprad on 1943 who came up with the name IKEA by combining the first letters of his name I&K, followed by the first letters of his farm home village (Elmtaryd & Agunnaryd).…

    • 717 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Ikea Strategic Analysis

    • 1895 Words
    • 8 Pages

    IKEA used design, their main competency, to secure the lowest possible price by starting design with a functional need and price then using knowledge of innovation and low cost manufacturing processes to create functional products. They created a homogenous range of products that is attractive to consumers everywhere in the world regardless of the differences in cultures and geographical location. They were able to achieve and maintain low cost by combining benefits of mass consumption and production with continuous innovative style and functionality. This enabled them to quickly respond to changes in the world and yet still maintain a sense of excitement and modernity.…

    • 1895 Words
    • 8 Pages
    Best Essays
  • Better Essays

    Ikea business model

    • 1893 Words
    • 8 Pages

    Fabian Suarez . (2006). International Business Strategy IKEA . Available: http://www.actuarisk.be/files/IkeaSite.pdf. Last accessed 27th December 2013.…

    • 1893 Words
    • 8 Pages
    Better Essays
  • Better Essays

    Customer and Ikea

    • 1622 Words
    • 7 Pages

    IKEA is very well known as the world’s largest home furnishing retail chain which was founded in Sweden back in 1943. Originally started as a mail order company, now IKEA has expanded its operation to more than 32 countries having more than 175 outlets. IKEA operates large warehouse showrooms in 16 countries and operates smaller stores in another 9 countries. Germany is IKEA’s largest market followed by the U.S.…

    • 1622 Words
    • 7 Pages
    Better Essays
  • Best Essays

    Ikea case study

    • 2553 Words
    • 11 Pages

    From humble origins in the woods of Sweden in 1926, IKEA has developed into a major retail experience in 41 countries / territories around the world, with a current turnover of €23.1 Billion (IKEA, 2010).…

    • 2553 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    IKEA is an International furniture company, which has 298 stores in 26 countries. IKEA was founded in 1947. The key player and founder of IKEA is Ingvar Kamprad. The International Headquarters of IKEA are located in Delft, Netherlands. IKEA was the first retailer in its field to establish stores in all of Europe, North America, Asia, and the Middle East.…

    • 2171 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Ikea Case

    • 699 Words
    • 3 Pages

    2. Why do you think IKEA’s expansion into Europe went so well? Why did the company subsequently stumble in North America? What lessons did IKEA learn from this experience? How is the company now applying these lessons?…

    • 699 Words
    • 3 Pages
    Good Essays
  • Good Essays

    IKEA Case Study

    • 621 Words
    • 2 Pages

    IKEA expands to other markets in order to get new customers and sales. In addition, expanding globally allows companies and firms to increase their profitability. IKEA was able to expand their market for their domestic product offerings by selling those products in international markets.…

    • 621 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    What are some of the things IKEA is doing right to reach consumers in different markets? What else could it do?…

    • 232 Words
    • 1 Page
    Satisfactory Essays