Preview

Ikea Case Study Ebusiness

Powerful Essays
Open Document
Open Document
5773 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ikea Case Study Ebusiness
TABLE OF CONTENTS

1 Theoretical Analysis 3 1.1.Background 3 1.2 Literature review 3 1.2.1 Click and Mortar Strategy- integration of two channels 4 1.2.2 Transaction-based and trust-based strategy 6 1.2.3 Corporate website & e-commerce system 7 1.2.4 Summary 9
2 Strategy analysis 11 2.1 Business idea 11 2.1.1 Business Model 12 2.1.2 Vision 14 2.2 Global Strategy 14 2.3 Future challenges 15
3 Web site analysis 16 3.1 Informative communication 16 3.2 Structure, Navigation and visuality: 17 3.3 Information accuracy, security and trustworthiness of the site 18 3.4 Web shop 19 3.5 Personal opinion 20
4 Conclusion 21
Referencess 23

1 Theoretical Analysis

E-commerce concept goes beyond “the selling and buying goods on internet”, on the contrary, e-commerce involves distinctive strategic positioning and business process restructuring as well as the revolution of market places. Retailing industry is one of the key areas of e-commerce. Established retailers tend to implement a click and mortar approach to e-commerce, integrating both online and offline channels. This case study shows how a global brick and mortar retailer has successfully applied e-commerce strategy in its business processes and how it has integrated both channels with existing resources.

1.1.Background

The internet users are growing robustly. Since 2002, the internet use has grown by 18% yearly, till now, over one billion people using the net. ( Nielsen NetRatings 2006). The great increase of internet-using populations intrigues the dramatic growth of e-commerce activities which make a rapid transformation in market places. Retailing is one of key areas. In the interest of benefits of e-commerce, established store retailers gradually develop different approaches to e-commerce. A review of previous studies shows that the brick and mortar retailers adopt a click and mortar approach , converging two modes of channels, in aims to offer products and services



References: 3. Birkhofer, Schogel, Tomczak; Transaction- and Trust-based strategies in E-commerce. Electronic Markets, 2000, Vol.10 Issue 3,p169-175 4

You May Also Find These Documents Helpful

  • Powerful Essays

    Budget Analyst

    • 1404 Words
    • 6 Pages

    Analyze the challenges that organizations face in the effective transition between selling products using the traditional brick and mortar marketing channel and selling products online. Synthesize the strategies that organizations like Zara and Wal-Mart- two companies that are having difficulty developing eCommerce capability can implement to increase the effortless movement of customers between the traditional and online channels.…

    • 1404 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Ikea Case Study

    • 2098 Words
    • 9 Pages

    IKEA is in the industry of consumer goods. Specifically, IKEA is a retailer of furniture (Peter & Donnelly, 2009). On a broad scale, IKEA’s competitors are all furniture retailers, but their direct competition comes from other discount furniture retailers.…

    • 2098 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Schneider, G. (2015). Electronic Commerce (11th ed.). (A. Brodkin, Ed.) Stamford, CT, USA: Cengage Learning. Retrieved May 28, 2015, from www.cengage.com…

    • 1877 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    IKEA Case Study

    • 756 Words
    • 4 Pages

    similar goods that IKEA sells. The company’s main competitor is WalMart because their prices are lower than IKEA’s. However, Wal-Mart…

    • 756 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    There are many different business trends shaping e-commerce today. For one, ecommerce remains the fastest growing form of commerce when compared to physical retain store, services, and entertainment. Another trend is that the online demographics of shoppers broaden to match those of ordinary shoppers. Also, small businesses and entrepreneurs continue to flood through the e-commerce marketplace, often riding on the infrastructures created by industry giants and increasingly taking advantage of cloud-based computing resources. Lastly, pure e-commerce business models are refined further to achieve higher levels of profitability, whereas traditional retail brands use e-commerce to retain their dominant retail positions.…

    • 1925 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    42. Shankar V., Sultan F., Urban G.(2002), “ Online Trust and E-business strategy : Concepts, Implication and Future Direction.”…

    • 14797 Words
    • 60 Pages
    Powerful Essays
  • Satisfactory Essays

    IKEA case study

    • 440 Words
    • 2 Pages

    IKEA’s view of value creation and delivery assists customer loyalty by creating a strong brand culture. Nowadays, people are becoming brand conscious thus helps IKEA in retaining more customers. The company is customer oriented which make its products based on consumer needs. IKEA sells stylish furniture at such a low price that is really affordable and more people buys it, which in turn increases sales and customer loyalty. Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers. IKEA started as a pure Scandinavian furniture seller with a standard product but latter on get mixed with local culture of country and life style as in case of China. In addition, convenience of going to IKEA stores is another contributing factor to customer loyalty. The stores are near to public transport places and shoppers view furniture on the main floor in scores of realistic settings arranged throughout the cavernous showrooms (Wild et. al., 2007). IKEA has started a home delivery service and assembly service to make it more convenient for the customers. Not only this people who are very busy in life and cannot go to the brick store, they can also order through World Wide Web for the furniture and IKEA will deliver it to their doorstep (IKEA, 2012). Also, the company started additional services such as food outlets, food market and Kid’s corner to entertain its customers who comes for shopping.…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Rodgers, J. A., Yen, D. C., Chou, D. C., 2002. “Developing e-business: a strategic approach”, Information Management & Computer Security Journal, MCB UP Ltd, 10:4, pp. 184 – 192, available from: http://www.emeraldinsight.com/ [Accessed on 01.05.2010].…

    • 1989 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    Ikea Global Business

    • 317 Words
    • 2 Pages

    This view focuses on Value, Resource, Imitability and Organizational factors (VRIO) of capabilities and resources deposit within the firm. Ikea has out performed its competitors since the time it was born. Below is the analysis of Ikea based on VRIO analysis-…

    • 317 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Is535 Final Course Project

    • 3651 Words
    • 15 Pages

    The first key to starting a successful online business is to first understand ecommerce and how it operates. Most people understand that ecommerce or electronic commerce refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, it stretches beyond just the buying and selling of goods; it also includes an online process of developing, marketing, selling, delivering, servicing and paying for products and services. “The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction 's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well”. (Electronic Commerce, modified November 2011, Wikipedia). Today it is said to be over 29.7 billion pages on the World Wide Web. Ecommerce today has gained so much popularity because its core technologies are constantly evolving and keeping up with a technology based world. Each year the number of ecommerce deals grows tremendously. The sales volumes of on-line stores run in a more than comparable race with physical retail stores.…

    • 3651 Words
    • 15 Pages
    Best Essays
  • Powerful Essays

    Ikea Case Study

    • 3440 Words
    • 14 Pages

    (Resource: S Marinova, The evolution of country and Firm specific Advantages and Disadvantages in the process of Chinese firm internationalization, www.ceauk.org.uk/2010-conference-papers/full.../Marin-Marinov.Pdf)…

    • 3440 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    IKEA, the Swedish home furnishing retailer specialising in affordable flat pack furniture is known as the world’s largest retailer of well-designed, inexpensive and functional furniture and products for the home. IKEA opened its first furniture showroom in Sweden in 1953, and now has over 345 stores in 26 countries worldwide. As the importance of online presence grows, IKEA has also launched over 13 successful e-commerce websites in many parts of Europe, UK and the US. It is undeniable that a core reasoning for their continued success is due to their unique business and e-commerce model and solid core values, which will be discussed further in this report.…

    • 1659 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    The American Shopping experience is constantly evolving, with shoppers demanding the most bang for their buck. Today Americans prefer brick and mortar, however, E-commerce is on the horizon. Both businesses have to adapt themselves to the ever-changing demands of American consumers. E-commerce has gained popularity with consumers due to its lower taxes, overhead, and few or no physical stores. With high overhead, employee gaps, and retail storefronts, more brick and mortar companies are facing greater difficulties conducting business in their current state of form.…

    • 1180 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Business Model IKEA

    • 374 Words
    • 3 Pages

    3. Display key products at Home life style showroom to inspire customers for decoration their home by simple and easy ways…

    • 374 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Nasri, J. (1999). Traditional Retailers Prepare To Confront E-Commerce Challenge. Weekly Corporate Growth Report, Vol. 10 (172), pp.10505-10507.…

    • 3662 Words
    • 15 Pages
    Powerful Essays