References
Ferrell, O.
References: Ferrell, O. C., & Hartline, M. (2010). Marketing strategy. Mason, OH: Cengage.
IKEA has established an advantage for slow economies; the company has only built stores outside of large, metropolitan cities (Peter & Donnelly, 2009). Because cities typically grow due to job availability and an influx of job-seekers, IKEA has positioned their stores among the majority of employed consumers. These locations are the primary foundation to IKEA’s past success (Peter & Donnelly, 2009), and should provide strength to outlast the current recession.…
Rosenhauer, S. (2008) “Profit is a Wonderful Word”: IKEA’s Strategy Behind the Profit. Munich: GRIN Verlag.…
Our group will illustrate IKEA’s general development in chronological order. We analyze its’ different strategy in corresponding stage, and look into IKEA’s future development.…
The most important savings are about the production activity: IKEA tries to keep an huge…
5. To achieve the kind of growth that IKEA is hoping for, should the company change its product strategy? If so, in what…
What factor is the biggest reason for IKEA’s growth and popularity: value or image? What can IKEA do to sustain growth after it loses some cache ́?…
3. To what extent has IKEA practised a standardised strategy versus an adapted strategy in its global strategy? What are the advantages and disadvantages of this approach?…
Value – When different companies enter into the industry dominated by a single firm. Then, the firm dominating needs to focus on its value adding capabilities and resources. Ikea is a firm that has been dominating the industry in which it’s operating. The reason behind this success is the firm has some valuable resources and capabilities. For example. the firm has strong long-term commitment with the suppliers, which has been beneficial for the firm to get its products at lost cost and the company specializes in recycling five of its waste materials. It is known for its franchising missions, unlike other companies it does not get into the international markets via joint ventures or partnerships but through agreements. One of them is, in 2001 it entered into an agreement with Musicmusicmusic, Inc. to introduce industrial sound service.…
In order for IKEA to achieve and maintain competitive priorities, they need to have a cost advantage leadership and differentiate their manufacturing, products, and services with high quality. IKEA’s battle plan is “keep making offerings less expensive, without making them cheap. IKEA’s prices are on average 40% less then their rivals. In addition to that, while IKEA’s rivals’ prices tend to rise over time, IKEA reduced its retail prices by a total of 20% during the years 2009 to 2013. That allowed IKEA’s sales in some products to increase by an average of 40%. The reason behind IKEA’s success on maintaining “high quality at a low price” is their smart focused operation strategy. Starting from developing to selling their products, IKEA always use and follow smart Ideas that reduce their operation costs without lowering the quality, thus, reduce prices, increase sales, and increase their market share. Examples of IKEA’s smart Ideas are demonstrated on the answers of the following questions.…
3. What does the IKEA story teach you about the limits of treating the entire world as single integrated global marketplace?…
Globalization of markets benefited IKEA in a few ways. The company can make sure that its image and core value are promoted to all customers over the world. For example, the Swedish color of the stores reminds customers of the background of IKEA. Also, standardized design of the stores and products can help IKEA to promote its trend. By standardizing the product designs, IKEA can also make sure that all the products can reflect the image of the company in a consistent way, and shows the culture of IKEA’s “simple and clean lifestyle”. It can create a worldwide “IKEA culture” in all markets around the…
IKEA was established in 1943 by Ingvar Kamprad at the age of 17. His entrepreneurial nous has led to an integrated design, production and distribution network spanning 53 countries. Kamprad created a lifestyle model that mould consumer habits and attitudes. The purpose of the company was to provide fine-looking, quality furniture to the masses which Kamprad went about via the internal culture of the company. IKEA’s attention to detail can be described as a variety of strategies that link management and co-workers at all levels to their customers.…
China’s reform and opening-up policy since 1978 has brought profound changes of the country’s economic landscape. Boasting an average Gross Domestic Product…
About IKEA: the company was founded by Ingvar Kamprad in 1943 in southern Sweden. Following the company’s history over six decades, IKEA has grown from a southern Sweden woods producer to a major global furniture retailer operating in 40 countries around the world. (History, 2013) The business idea of IKEA is to offer a wide variety of well-designed products at low prices so that as many people as possible can afford themselves to buy the products. (Business-Idea, 2013) IKEA’s founder, Ingvar Kamprad sought for an ownership structure that provides independence, long-term approach and continuity and for that reason, IKEA has been owned by a Dutch foundation—Stichting INGKA Foundation. The purpose of this structure is to hold shares and reinvest them in the IKEA group. (IKEA GROUP, 2013) IKEA operates through the whole value chain from production to retail, and tries to be sustainable in every operational procedure. (Sustainability, 12) IKEA’s product range consists of approximately 9500 products, it has 139000 co-workers in total, and has 298 stores in 26 countries in August 31, 2012. The total sales of 2012 are 27 billion and they increased by 9.5% in comparison with 2011. (IKEA GROUP, 2013)…
1. How would you describe IKEA's strategies to overcome the problem that the American market prefers the part of range that IKEA does not actually want to emphasize?…