Preview

Case Study: Ikea

Good Essays
Open Document
Open Document
956 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Case Study: Ikea
1.) Visit www.ikea.com and compare a catalog from one country to that of another. What differences do you notice? Can you discern that some photos are 3-D mockups instead of real rooms with furniture?
After looking through a few different catalogs, I noticed that while at first sight they appear to me the same furniture style they are laid out on the page somewhat different. The adaption of the furniture, as well as the models, changes according to what area the catalog is for. It appears that the American catalog rooms show more space stretched out while others are more confined. Some have models in them while some do not have any or less than others.

If one was to only look at their particular country’s catalog, it would appear that the
…show more content…
While the still sell the same products worldwide, they adapt their products to fit the needs and wants of local areas. I return to the kitchen example above. It is the same products, just arranged and displayed in a way that fits the market. They also seem to use online, stores and catalogs to get their product out to the consumer in all markets, but adapt each to how a particular area responds. Price is also adaptable to the competitive price of the area’s market while still trying to keep their overall strategy of being accessible and affordable to all …show more content…
They seem to be in high demand whether there is a store open in the area or not. Whether it be the consumer makes a day trip to the store or orders products online, they marketing strategy seems to reach the masses and is working at all levels. The hype of a store opening in an area causes a mad rush to the store for months after the opening. If there were an IKEA in every area, the way Walmart is, the excitement and store traffic would diminish at stores. The cost of opening each store, the price to deliver to all the stores, holding inventory in stock for longer periods possibly after being the trend of the moment, and employing the numerous people that it takes to run the store would all cost the company money and could make the prices rise. This would diminish one of IKEA’s goals of being low priced an affordable to

You May Also Find These Documents Helpful

  • Powerful Essays

    Ikea Case Study

    • 2098 Words
    • 9 Pages

    IKEA has established an advantage for slow economies; the company has only built stores outside of large, metropolitan cities (Peter & Donnelly, 2009). Because cities typically grow due to job availability and an influx of job-seekers, IKEA has positioned their stores among the majority of employed consumers. These locations are the primary foundation to IKEA’s past success (Peter & Donnelly, 2009), and should provide strength to outlast the current recession.…

    • 2098 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Chilean Culture

    • 1142 Words
    • 4 Pages

    GLOBAL MULTI-PRODUCTS CHILE THE CHILEAN CULTURE The Chilean culture tends to be an individualistic society in the business environment. They are the most serious people in Latin America. However, they are professional in their behavior in terms of politeness and indirectness. They seem to be workaholics with their routine days of about 12 hours. Trust in the Chilean cultures among each other, remains on the edge. It is difficult for a Chilean to trust another individual despite their race, sex or origin. Teamwork remains a mission in process in Chile.…

    • 1142 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    The Business Strategy Game

    • 3052 Words
    • 13 Pages

    The marketplace is worldwide—production and sales activities can be pursued in North America, Latin America, Europe-Africa, and Asia Pacific…

    • 3052 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    In the context of examining each country for product, price, place, and promotion, we are consistent in the way we are marketing our products. There are differences in culture and demand in each country, which guided the way we selected our SKU’s, which are different for each country. We noticed that price in each country is the major factor in the decision process of the consumer when faced with purchasing…

    • 4126 Words
    • 17 Pages
    Good Essays
  • Good Essays

    As the current market is saturated, there is little attraction for a competitor large enough to threaten IKEA’s position. In addition, the significant amount of financial investments and expertise are required to become a discounted furniture retailer in a global scale. There is little threat from new entrants.…

    • 479 Words
    • 2 Pages
    Good Essays
  • 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’s focus towards shopping experience is part of their effort in building brand loyalty. As you can see from the pictures, every bed in the store are occupied, with children and adults falling asleep. IKEA does not discourage this. They realize that the more customers choose to relax in its showrooms, the more likely they will have positive attitude towards its brand and make a purchase once their incomes catch up with their aspirations.…

    • 444 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The product would have to meet the standards of other countries and be able to compete well against companies that are from that country with similar products. Some companies have tendencies to incorporate other versions of the products in order to compete in foreign markets Kumar, V. (2001). McDonald’s would be a prime example of this because they have adapted the menu to the countries that they are in. In India they do not have beef on the menu because the cow is a sacred animal in India so they adapted the menu to fit the customs and the culture.…

    • 1140 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Coca-Cola in Brazil

    • 534 Words
    • 3 Pages

    In contrast to the established brands, commonly owned by multinational corporations or by large traditional domestic firms, such “low-end” entrants typically offer low-price, low-quality, largely unadvertised products to low-income consumers, often distributing their products within limited geographic areas, such as a few counties or a fraction of a state or province.…

    • 534 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Customize product offering, market strategy (including production and R&D) according to national conditions; compete through localization of products, no standardization…

    • 1023 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Swot Analysis Ikea

    • 1951 Words
    • 8 Pages

    storeThe IKEA store is large. It has to be in order to offer a wide and deep range of products that people can take home immediately and enjoy the same day. As well as to inspire people in realistic room settings and real-life homes.…

    • 1951 Words
    • 8 Pages
    Satisfactory Essays
  • Good Essays

    Product Standardisation

    • 379 Words
    • 2 Pages

    Since the product is the same wherever you buy it, it is wholly undifferentiated. It is not unique in anyway. This leaves the obvious opportunity for a competitor to design a tailor-made, differentiated or branded product that meets the needs of local segments. Of course products have different uses in different countries. Local markets have local needs and tastes. Therefore by standardizing, you could leave yourself vulnerable.…

    • 379 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The globalization of market refers to the merging of taste and preferences of consumers from all around the world resulting in an emergence of a single global marketplace. IKEA has thus used this occurrence to their advantage by shaping their business model to emphasize on standardization, customization and functionality. IKEA’s motto “ One design suits all” is a simple yet effective business model that has helped them cater to all the diverse markets around the world today. In general IKEA products are standardized across markets and have high functionality that cater to the needs of people in every country. IKEA also functions on the principle of offering furniture at low and affordable prices. Despite its low costs, products are still of high quality due to the ability to mass produce their products. Similar to Macdonaldization, IKEA has been able to answer to the uniform taste of consumers in todays society and at the same time spread its own culture identity internationally. IKEA only uses different marketing and advertising strategies for their various markets to better cater to the local consumers.…

    • 432 Words
    • 2 Pages
    Good Essays
  • Good Essays

    International Maketing

    • 779 Words
    • 4 Pages

    Social/Cultural factor play a deciding role in the companies’ product ranges sold in a particular country. The social environment including the cultural norms, the demography and population which helps to determine its product ranges. Product differentiation and localization becomes crucial if the host country and the companies’ original country are culturally far away from each other. Cultural distance includes…

    • 779 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    National Competitive Advantage of IKEA IKEA Group, a Swedish company founded in 1943 with its headquarters in Denmark, is a multinational operator of a chain of stores for home furnishing and furniture. It is the world's largest furniture retailer, which specializes, in stylish but inexpensive Scandinavian designed furniture. At the end of 2002 (1 September 2001 - 31 August 2002), the IKEA Group of Companies had a total of 175 stores in 31 countries. In addition, there were 19 IKEA stores owned and run by franchisees, outside the IKEA Group, in 12 countries. During the IKEA financial year 2001-2002, 323 million people visited our IKEA stores around the world.…

    • 3176 Words
    • 13 Pages
    Powerful Essays