1.2 Problems Identifications and assessments
After Studying this part one should be able to do the following: •
Characterize and compare the different problems faced by IKEA in o
Introduction: As this report has comprehensible decision oriented approach. It is divided in 3 parts which describes the various problems identifications and assessments faced by IKEA across its market as the company is moving toward Globalisation.
Problems identifications and assessments:
The problem faced by IKEA is been divided in various parts and there is a relevant illustration given with each of the problem 1.21 Flat Pack design: This is quite innovative and cost effective method invented by IKEA .It
is not just selling products but selling philosophy as well which was not doing so well initially
in America where IKEA struggled to change the attitude of the consumers, they found it too
unswervingly Swedish. The e.g. of the America was not the first time that IKEA struggled to
implant the Swedish culture they also tried to persuade the Japanese consumers in 1974 but
they had to withdraw from the market facing the same problem
1.22 Rigid in approach: IKEA was quite rigid in their approach to international market where it refused to adapt the most vital things. For e.g. it was suggested that Americans wouldn’t assemble furniture themselves, rather than yielding its flat packs, IKEA provided better instruction manual and a self assembly service. It faced a similar problem in Japan as well other where the company denied it by claiming that Japanese culture was similar to Scandinavian. 1.23 Less Product Variation: In order to keep cost minimal there is standard variants available
across IKEA stores, so there was constant pressure for IKEA to sell the same products all over the world for e.g. for Chinese market only 3 variations were added to 6000...
Please join StudyMode to read the full document