Case Study

Topics: North America, Culture, Corporate social responsibility Pages: 3 (854 words) Published: February 16, 2014
Dan O’Brien2/7/2014

1. What has allowed IKEA to be successful with a relatively standardized product and product line in a business with strong cultural influence? Did adaptations to this strategy in the North American market constitute a defeat to its approach?

IKEA has made themselves successful with a relatively standardized product and product line in a business with strong cultural influences because of the their stated mission, “to offer a wide variety of home furnishings of good design and function at prices so low that the majority of people can afford to buy them.” Along with the previously stated mission it key that they target people who are also not so concerned with status symbols and material possessions. They draw to this demographic because of the low cost to manufacture these products which make them inexpensive and can are sold at prices that these certain groups of people will continually buy. People of many different strong cultural influences will buy these products because of cultural universals, “which are manifestations of the total way of life of any group of people… Common denominators can indeed be found.” (Czinkota & Ronkainen, 2013, pg. 64) This concept is stated in the article saying that the standardized product strategy for IKEA is offering products that are universally accepted around the world. In North American market it appears that this strategy has not defeated its approach by adapting and allowing smaller franchise stores rather than large company owned outlets. North America is one of the smaller markets where the “IKEA concept” is not as widely received and by allowing smaller franchising stores it still gives the consumers who are on board with their concept the chance to go out and buy their products.

2. Which features of the “young people of all ages” are universal and can be exploited by a global/regional strategy?

The features of the “young people of all ages” that is universal are the...

Cited: Czinkota, Michael R., and Ilkka A. Ronkainen. "Market Entry and Expansion."
International Marketing. Fort Worth: Dryden, 2013. 281. Print. (n.d.). Retrieved February 6, 2014, from
Esptien-Reeves, J. (2012, February 21). Six Reasons Companies Should Embrace CSR. Forbes. Retrieved February 4, 2014, from
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