Ikea's Business Strategy: The Marketing Strategy Of IKEA

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Introduction IKEA is a multinational company that was founded in 1943 by Swedish entrepreneur, Ingvar Kamprad. With 290 department stores in 26 countries and still expanding, IKEA is the world´s largest furniture retail chain (Chu et al., 2013). After seven years of negotiations, the company has been allowed to establish 25 stores in India. With an investment of 105 billion rupees or 1.95 billion dollars, this expansion will be the largest since the country amended a law that only allowed foreign companies to own only up to 51 % in single brand retail venture (Roy, 2013a). This emerge could bring both challenges and opportunity as IKEA strive to enter one of the most sought after markets today. With a population of 1,237 billion, 42% of the population living on a little more than one dollar a day, and the third largest economy in purchasing power parity (PPP), India has a lot of potential (Banerji & Shah, 2012). Although IKEA has been approved, it won 't be for another four to five years before the company opens its first store (Roy, 2013b). The next few years will be a critical stage in the Ikea´s strategy in regards to this new market. In this essay we will focus on the company 's segment targeting and marketing as well as IKEA`s policies in respect to the environment and their corporate social responsibility (CSR). Customer segment targeting One of the main problems with IKEA when establishing in China was that its prices, considered low in Europe and North America, were

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