Nova Southeastern University
Wayne Huizenga Graduate School
of Business & Entrepreneurship
Assignment for Course:
201430 MKT 5070: Managerial Marketing
Milando Silva, Marcio Silva, Michael Rivera
(Student’s ID number)
(Work phone number)
(Home phone number)
Date of Submission:
Title of Assignment: IKEA Case Study
CERTIFICATION OF AUTHORSHIP:
I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledge and disclosed in the paper. I have also cited any sources from which I used data, ideas of words, whether quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course.
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The assigned case study entitled “Ikea Takes America” is a true testament to the success of a company that had developed its product and brand around a culture that was outside of the US and then took that product and brand and penetrated another country in this case, “United States” who ended up being quite successfully and have continued that success in the years since. Many people when they hear of the name Ikea think of a international furniture company that offers sheik, stylish, modern and cheap array of furniture. What has made Ikea so successful is the reinventing of the wheel from a business perspective by doing such things as cutting the company’s business costs at the corporate level to give that back to the customer, empower its customers to assemble their own furniture which allows them in most cases to take their product home with them immediately after their purchase. As MBA students who may ultimately hold management positions within a company such as Ikea, its imperative that we apply real case scenarios to handle certain situations from every aspect of business which includes marketing products to existing and prospective customers. Reviewing the case, we have gathered several key points that has lead to Ikea’s success, what Ikea may be lacking, where there are areas of improvement, and to analyze certain techniques used by the company to expand their target market, extend their reach into different demographics, building a strong band and creating customer loyalty.
The first question that was asked with regard to the assigned case was concerning key factors that accounted for Ikea’s success. Ikea was able to penetrate the US market in particular as a result of the product offerings that it has had and has continued to maintain in its repertoire. What appealed customers to their product lines span over a wide variety of reasons which include its reasonable priced items compared to competitors while at the same time maintaining high quality product. They have been able to achieve this by implementing cost saving metrics from every aspect of the business in terms of the company’s expenses. An example of this as outlined in the case study was Ikea sourcing its product supplies from a wide range of suppliers to keep costs as low as possible. These cost cutting measures resulted in a lower expenses budget and the company being able to transition those savings off to their customers by offering the lowest pricing compared to industry standards. Additionally, Ikea offers a product style that was unique to the American market that hadn’t been seen and hasn’t been replicated by its competitors.
Most importantly, Ikea has done a remarkable job at providing excellent customer service from every aspect of the customer experience. As explained in the case, many of Ikea’s competitors lacked in this area, which ultimately left an opportunity for the company to steal market share. Ikea capitalized by providing an area for...
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