Ikea case study
Ikea - Case Study Expansion Into China and Japan
“IKEA – A Long March to the Far East”
Global Strategic Marketing Case Study
Table of Contents
1 Introduction to the case 2
2 Critically and systematically analyse the global strategic advantages of IKEA 3
2.1 Branding , designer appeal 3
2.2 Critical mass, low cost, low price 3
2.3 Quality, green credentials 3
2.4 Global appeal, local sensitivity 3
3 What were the key challenges that IKEA faced in a) China and b) Japan? 4
3.1 Key challenges faced by IKEA in China 4
3.1.1 Cultural 4
3.1.2 Structural 4
3.2 Key challenges faced by IKEA in Japan 4
4 Critically discuss the marketing strategies used to address the challenges the company faced in China and in other markets. 6
4.1 China 6
4.2 Other markets 7
5 Discuss and justify what IKEA’s marketing strategies should be in the future in these two markets. 8
5.1 China 8
5.2 Japan 8
6 Conclusions 9
7 Bibliography 10
1 Introduction to the case
From humble origins in the woods of Sweden in 1926, IKEA has developed into a major retail experience in 41 countries / territories around the world, with a current turnover of €23.1 Billion (IKEA, 2010).
This case study explores the establishment and development of IKEA’s retail ventures in China and Japan – its first moves outside westernised countries and its first significant retail activity in Asia, despite substantial sourcing activity in the region, and discusses how IKEA might continue its market development in these territories.
2 Critically and systematically analyse the global strategic advantages of IKEA.
2.1 Branding , designer appeal
IKEA has strong brand, which, in the western world is associated with innovative design, giving it “to cross the road for” appeal, and “street cred” which is reinforced by the continual addition of innovative new products designed for the mass market, IKEA. (STOLBA, 2009)
2.2 Critical mass, low cost, low
“IKEA – A Long March to the Far East”
Global Strategic Marketing Case Study
Table of Contents
1 Introduction to the case 2
2 Critically and systematically analyse the global strategic advantages of IKEA 3
2.1 Branding , designer appeal 3
2.2 Critical mass, low cost, low price 3
2.3 Quality, green credentials 3
2.4 Global appeal, local sensitivity 3
3 What were the key challenges that IKEA faced in a) China and b) Japan? 4
3.1 Key challenges faced by IKEA in China 4
3.1.1 Cultural 4
3.1.2 Structural 4
3.2 Key challenges faced by IKEA in Japan 4
4 Critically discuss the marketing strategies used to address the challenges the company faced in China and in other markets. 6
4.1 China 6
4.2 Other markets 7
5 Discuss and justify what IKEA’s marketing strategies should be in the future in these two markets. 8
5.1 China 8
5.2 Japan 8
6 Conclusions 9
7 Bibliography 10
1 Introduction to the case
From humble origins in the woods of Sweden in 1926, IKEA has developed into a major retail experience in 41 countries / territories around the world, with a current turnover of €23.1 Billion (IKEA, 2010).
This case study explores the establishment and development of IKEA’s retail ventures in China and Japan – its first moves outside westernised countries and its first significant retail activity in Asia, despite substantial sourcing activity in the region, and discusses how IKEA might continue its market development in these territories.
2 Critically and systematically analyse the global strategic advantages of IKEA.
2.1 Branding , designer appeal
IKEA has strong brand, which, in the western world is associated with innovative design, giving it “to cross the road for” appeal, and “street cred” which is reinforced by the continual addition of innovative new products designed for the mass market, IKEA. (STOLBA, 2009)
2.2 Critical mass, low cost, low
Bibliography: BURKETT, L (2011). In China Ikea is a Swede place for senior rest and romance. Wall Street Journal. Available from: http://online.wsj.com/article/SB10001424052970203503204577037991554068290.html CHALETANONE, W and CHEANCHARADPONG, W IKEA (2008). Presentation - IKEA in China: Cheap for Chinese? Cross Cultural Blog June 2 2008 Available from: http://cgi.stanford.edu/~group-ccr/mt-tb.cgi IKEA (2010) IKEA (2010). Website. Available from: http://www.ikea.com/ms/en_US/about_ikea/facts_and_figures/facts_figures.html LEE,K and CARTER, S (2009) PRESSELY, J (2011), Goldman’s O’Neill Sees ‘Rosy’ BRIC Future as China, India Slow. Available from : http://www.bloomberg.com/news/2011-12-27/goldman-s-o-neill-sees-rosy-bric-future-as-china-india-slow.html STOLBA, A (2009) LIU, L. (2008). IKEA in China: Cheap for Chinese? PowerPoint Presentation, CCS Spring 2008-06-02. Available from: http://cgi.stanford.edu/~group-ccr/mt/mt-tb.cgi/377 MILLER, PM (2003) ZHOU, M (2008). Website. China raises minimum wages to calm consumers in face of inflation – MarketWatch. Available from: http://www.marketwatch.com/story/china-raises-minimum-wages-to-calm-consumers-in-face-of-inflation