Strategic Marketing Management Case Study on
(Live your life. Love your home)
Home furnishing and furnitures retailer
Name: Tabassum Ejaz (354)
Course: Strategic Marketing management
Instructor: Sir Mubasher Sandeela
Dated: 17th February 2013
Source: Global Perspectives: Case Study: How IKEA of Sweden Got to India
In 1943, IKEA was founded by Ingvar Kamprad. It is a World's leading home furnishings and largest furniture retailer based in Sweden. IKEA numbers 1,04,000 employees in 267 stores in 45 countries.
Ingvar Kamprad, believes that: "Most things still remain to be done. Time is your most important asset. Split your life into10-minute units and sacrifice as few as possible to futurities" (Mclvor, Laurance,1994: 38).
The corporate culture of IKEA is built upon this philosophy all the way from design teams to suppliers and to the customer. A continuous strife for improvement in all areas of the value chain is an effective way to shape the industry to better fit IKEA's future strategies. Due to the uniqueness of IKEA's strategic positioning, being the largest competitor in its field, the firm has the advantage of setting the phase of the industry.
Bureaucracy is fought at all levels in the organization. Kamprad believes that "simplicity and common sense should characterize planning and strategic direction" (Bartlett et Al, 1993: 78).In addition, the culture emphasizes efficiency and low cost which is not to be achieved on the expense of quality or service. Symbolic policies such as only flying economy class and stay at economical hotels, employing young executives and sponsoring university programs have made cost part of corporate culture and has further inspired the influx of entrepreneurship into the organization.
Where are they now?
5 C ANALYSIS
* Kitchen ware
* Living room
* Bathroom & Laundry
* Small storage
Awards won by the company
* Leo Burnett Hong Kong win the Grand Kam Fan for IKEA at the Hong Kong 4As Awards * IKEA (Campaign of the Year)
* IKEA (Corporate Branding Campaign of the Year
* IKEA (Best Use of Online Media)
* IKEA Honoured With Eurobest 2010 Advertiser Of The Year Award * Award by Queensland Government’s Environmental Protection Agency for IKEA’s Environmental initiatives (2007) * IKEA was named one of the 100 Best Companies for Working Mothers in 2004 and 2005 by Working Mothers magazine * ranked 96 in Fortune's 100 Best Companies to Work For in 2006 and in October 2008 * IKEA Canada LP was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc
* Diversity and creativity
* Family like Quality
* Cost Conscious
* Eco Friendly
* Social Initiative (main partners to IKEA Social Initiative are UNICEF and Save the Children)
Goals of the Company
* Implementing strategies in the organization
* Customer transportation and carbon footprint
* Working with suppliers on compliance
* Communicating sustainability accomplishments
* Integrating sustainability into core business
* Forestation and use of wood
* They have 28 distribution centers in 16 countries that supply to IKEA stores. * They have over 300000 distributors all around the world
* They possess the bargaining power
* IKEA prefers procuring their materials from low cost countries like China to reduce their overall cost
The IKEA Group supports the Rainforest Alliance to promote Forest Stewardship Council (FSC) forest management certification in China by educating foresters and stakeholders on the principles of FSC certification. The project provides key experts with the training, tools and materials to conduct Rainforest Alliance workshops in...