Marketing and Ikea

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COUNTRY: TRINIDAD AND TOBAGO

NAME : AMRIT AMAR MARAJ

SUBJECT: STRATEGIC MANAGEMENT

STUDENT NUMBER : 12236975

TOPIC : IKEA

TABLE OF CONTENTS

*INTRODUCTION

*TARGET MARKET

*ORGANIZATIONAL STRUCTURE

*MARKETING MIX

*PORTERS FIVE FORCES

*STRENGHTS, WEAKNESSESS, OPPERTUNITIES, THREATS

*POLITICAL, ECONOMICAL, SOCIAL, TECHNOLOGICAL, ENIROMENTAL, LEGISLATIVE

*BOWMAN STRATEGY CLOCK

*CONCLUSION

INTRODUCTION

IKEA opening its doors in a developing country like Latin America would be a ideal futuristic possibility, of a one of the worlds’ largest companies manufacturing and selling home furnishings. IKEA’s strategy is ONE that is most commended in comparison to other rival companies. This strategy has created the opportunity in which IKEA was able to move up in the global market with more than 300 stores in 35 countries. The main focus of this work would not only be emphasized on the strategy of the company, but also on how it might work at the Colombian market. It would be an brilliant idea for the company to provide their services in Colombia. Some questions may arise from this situation such as “Does IKEA’s strategy match the customers’ behaviour.” In order to derive answers to these questions, first there will be some general information about the company. Secondly there would be specific tools used such as the SWOT Analysis, the Porter’s Framework and the Supply Chain among others. these tools would clarify the business model of the company. Thirdly

IKEA is a growing Swedish company that was founded by Ingvar Kampard in 1943 that sold home furnishings with the vision “to create a better everyday life for the many people”. Form the vision we can say that IKEA is a gigantic store that wants to attain as many customers as possible. The fact that this is the main aspect of the investigation means that the company seeks to have rapid expansion. IKEAs core competence derives from their ability to offer a wide range of well designed functional products at affordable prices. The importance of their core competency is revited from the concept of provided from their low pricing schemes. It is quite important to realize that the concept of the company that is mentioned before has been realized. Together with thisIKEA provides a very unique way of shopping and store arrangements that placed success upon IKEA. All of their stores are designed in such a way that customers can walk around and view the various displayed rooms, in which decorative ideas are implanted into the minds of the customer. Their prices are much less when compared to the others thanks to the fact that customers make the decision on what they require. CORE COMPETENCIES

The core competencies of IKEA stems from the ability to provide functional designer products at the lowest cost achievable]. They also contain the strong concept ‘Anybody can make a good-quality product for a high price, or a poor-quality product for a low price. But to make good products at low prices, you need to develop methods that are both cost-effective and innovative. This has been the focus of IKEA since its beginnings in Småland, Sweden. Maximising the use of raw materials and production adaptation to meet people's needs and preferences has meant that our costs are low. The IKEA way of doing things is to pass these cost savings on to you, our customers’ [www.ikea.com] and they have proven this possible in many ways. They also display a democratic design in their equal balance of function, quality, design and price. They have a very clear and pronounced vision that stands out and is realized ‘To create a...
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