Each IKEA branch company needs to define its specific mission within the broader company, which mission is “Create a Better Everyday Life”. Thus, IKEA Nanjing Store might define its mission as, “Establish IKEA Nanjing as the leader in life at home”. IKEA Nanjing Store needs to be two directions: 1. Inspire and stimulate the many Nanjing people’s interest in improving their lives at home through deeply understanding people’s needs, frustrations, and dreams and by using IKEA home furnishing knowledge and competence to provide affordable, relevant and understandable home furnishing solutions. 2. Achieve this only when their co-workers become competent and highly motivated.
The below table forecast the datum analysis of goals and results from fiscal year 2012 to 2015.
IKEA Nanjing SWOT Analysis
We can use SWOT analysis to evaluate the IKEA store’s marketing, which monitor the external (Opportunity and Threat) and internal (Strengths and Weaknesses) marketing environment.
IKEA Nanjing Store needs to monitor key macro-environment forces and significant micro-environment factors that affect its ability to earn profits. So it tracks trends and important developments and any related opportunities and threats.
* There is a stable birth rate and population increase rate in Nanjing city. * The income of Nanjing population has been increased at high level. Jiangsu Province is the second largest GDP in China over the past five consecutive years and Nanjing is the capital of Jiangsu Province. * There are a large number of second hand house and old house refresh in Nanjing city. * With the rising house price, the more many people are living in small space trend, the more people need to multifunctional furniture to decorate their small space. * Nanjing people are home lovers and easy to be influenced to take action to improve their home life. * To consider environment degradation and keep health life trend, people like to cook in the home, so they want to have a functional and practical, simple and beautiful, easy-to-clean kitchen. * Internet/online as new technology performance can make people not go out for shopping. * Transportation can bring convenience to the store through expressway, subway and public bus.
* Huge and increase investment in media and discount, create market noisy. To create big noise in the market to raise talk-of-town, like big event in downtown. The picture as below:
* Main Competitor strengthens service level. For example: Red star Macalline is the most furniture shopping mall in China. It has one to one and face to face consultant service.
* Competitors improve range presentation, use collage display technique. Red star Macalline has a wide range selection, especially for Living room, bedroom and children’s furniture. * Low price perception in competitor home furnishing accessory. Red star Macalline always use price promotion that is purely discount price, and there is different format (Cost from store and dealer), and frequent local activities
* Share of wallet with other fashion stuff/ New players * Competition in talent market
* Insecurity in real estate market. Since 2013, the China government has increased the control of the real estate. By introduced a series of policies and implemented the new tax rules, the purpose is to control the excessive growth of house prices.
The IKEA Nanjing Company applies market threat analysis to evaluate their threat to get the conclusion:
1. The macro environment increase keeps slow down. People are more cautious to spend money, care more promotion and price sensitive. For IKEA, they need to really strengthen the low price image.
2. Overall the real estate market is downturn from Y2012 that will impact sales growth. They need to focus on home renewal needs which will be the growth...