ipl-logo

Ikea's Global Strategy: Furnishing The World

810 Words4 Pages

Angel G. Colón Santiago
Marketing Management
Assignment 6a: Case of Study Ikea 's Global Strategy: Furnishing the World Company Background
Ikea is a worldwide group of companies that sell ready to assemble home and office furniture. It is the largest furniture retailer in the world. The company was founded by Ingvar Kamprad in 1943, when he was 17 years old. Today, Kamprad is one of the richest people in the world (Blomberg, 2013). The company name "Ikea" is a an acronym of the name of the founder Ingvard Kamprad Elmtaryd (Henley, 2008).
The company is well known for its modern furniture designs and its eco-friendly policy and simplicity, also their products are classified as an affordable elegance (Zuvela, 2008). The company is also well-known and study by management expert because of its cost control, operation details and product development and corporate attributes that made IKEA lower its price in the decade of 2010 during a period of global expansion (Toronto Star, 2012).
Cultural Factors that affect the Ikea Global Expansion
In class we have studied that cultural factors comes from different components related to culture environment from which consumer belongs (Peter, 2013). The culture of a customers plays an important roll in the understanding of the consumer behavior and its needs. According to Peter (2013) the customer will always have the influence of his family, friends, environment and the society of he belongs. These factors will teach values

Show More
Related

  • Comparison Of Home Depot And Lowes Marketing Strategies

    345 Words  | 2 Pages

    Unlike Lowes’ marketing strategy for site location, Home Depot tend to place its brick and mortar stores on second tier lots within a market area, while Lowes build its retail stores on major arteries or locations. When appraising these two big box retail stores, one must take into consideration these locational differences and how each organization’s marketing strategies impact its market values. Additionally, these site location differences have impact on sales due to egress and ingress onto each company’s parking lot; some consumers are unwilling to face the enormous amount of traffic on a major artery. Nevertheless, Home Depot’s marketing strategy is to provide consumers with the option of do-it-yourself home improvement opportunities

    Read More

  • Sainsbury's International Strategy

    1086 Words  | 5 Pages

    Report 1 1. Introduction The first supermarket of Sainsbury’s was established in 1869 by John and Mary Ann Sainsbury. Sainsbury’s is a multinational corporation (MNC) located in the UK. Its chain was Britain’s oldest remaining main food retailer and a leading food retailer in the UK and the US. “It also operated in financial service and real estate” (Sebora, T., Rubach, M. and Cantril R., 2014).

    Read More

  • Ikea Cultural Analysis

    966 Words  | 4 Pages

    It is how the members represent the organization both to themselves and to others. This is often expressed in official philosophies and public statement of identity’ (Schein, 2004). IKEA’s culture, beliefs and values can be found at their company’s website. According to the website, IKEA’s vision is to “To create a better everyday life for the many people”. And that they believe that “…every individual has something valuable to offer.

    Read More

  • Why Ikea Go International Case Study

    1438 Words  | 6 Pages

    In order to be succeed on international market, it’s very important point to define the international strategy. If to define the international strategy: an international strategy is when a company hires a strategy through which its goods and services are sold out of its local market. Enlarging into international markets allows potential opportunities to companies. Let’s see the IKEA’s international strategy in the following Figure 1. IKEA has expanded from a small, family-owned home furniture corporation into a global retailer within 385 stores in 48 countries, during its 72-year history.

    Read More

  • The Organizational And Cultural Environment Of Tesco

    986 Words  | 4 Pages

    Superior organizational strategy are generated by the top level management whereas the middle level management and lower level management of the company implements objectives and strategies to accomplish the complete strategy gradually. Based on the mission of the business the organizational strategies are put into words. To carry out this report we have selected a company named TESCO which is a worldwide grocery and universal products dealer founded in the year 1919. Worldwide in terms of profit it is considered as third leading retailer and in terms of revenue it is regarded to be the ninth leading retailer. Tesco has expand geographically from the time early 1990’s and into sections like electronics, furniture, and internet services etc.

    Read More

  • H & M Case Study

    882 Words  | 4 Pages

    I will be analysing the international strategic moves of H&M H&M is Swedish multinational company, it is a clothing retailer and is known for its fast fashion for men, women, children. The first store od H&M was open in Sweden in 1947 on the high streets of Vasteras. It is also ranked as the second largest retailer of clothing.

    Read More

  • The Advantages And Disadvantages Of Ikea's International Strategy

    1026 Words  | 5 Pages

    Global strategy is an international strategy that implements by a company which they doing their business in different countries. Internationalization is a process for IKEA expand its business and it was quite important because through the internationalization process, IKEA was able to gain a broader area of marketplace to sales their products, which will lead to profit and revenue increased and new market places existed mean new opportunity for IKEA to improve their product in order to meet the customers’ needs. The first reason that IKEA should go to international level is because the Swedish market is small and no enough for IKEA to expand itself. This is important for IKEA because the small market mean low opportunity, lower profit and

    Read More

  • Holiday Inn: Porter's Five Forces Of Industry

    1384 Words  | 6 Pages

    Holiday Inn is a world wide chain and its international functional strategies will always yield profitable returns. The potential customers are from all over the world. It has been noted that the holiday inn company has given the market such as Europe, Asia, America with regards to their social-cultural needs. Holiday Inn, like all other hotels has established a good system in determining the needs of the market. The company uses the concept of product, personality, behaviour of the customer and purchasing to its advantage.

    Read More

  • H & M International Expansion Strategy

    1025 Words  | 5 Pages

    Hennes and Mauritz (H&M) is Sweden based global company in the clothing industry. H&M has over 2600 stores in 43 different countries. H&M is known for their stylish or quality merchandise and its affordable prices. H&M has the aim and goal to provide quality fashion at the best and affordable prices. H&M also has the goal to provide good knowledge and product with good quality of well design, fashion, and textile (Matos, 2012).

    Read More

  • Marks And Spencer Market Segmentation Strategies

    1384 Words  | 6 Pages

    BE201 TMA Draft Karim Mahmoud Ghweil Question 1: A. Market segmentation is the process strategy of dividing a product or service for the general or specific groups based on their preferences, style, perceptions, needs, and interests. As Marks & Spencer already segmented its customers in some ways. It used demographic segmentation in which it targeted people with the age of 30 and above and also with relatively good or high income. But why M&S used market segmentation in the first place and how is it beneficial?

    Read More

  • Pestle Analysis In Latin America

    2329 Words  | 10 Pages

    IKEA uses franchises in order to reach other markets in which it does not have stores yet to take advance of the local knowledge and expand their brand. The company must also decide based on the market what is the best strategy in order to reach the customer and not just the strategy that will help it enter the country. The author Cunningham (1986) identified five strategies in order to enter a new market: • Technical innovation strategy – for products which are perceived and demonstrable superior as seen by the customer. • Product adaptation

    Read More

  • Situation Analysis Of Walmart

    1009 Words  | 5 Pages

    Lack of understanding local customers’ shopping habit cultures. Using a suitable strategy to adapt and match the host nation’s culture is one of the most difficult challenges that many multinational enterprises have to overcome (Alphonse 2014). According to Harzing test based on Barlett & Ghosal’s foreign market entry theory (1999), while

    Read More

  • Ikea Supply Chain Analysis

    2051 Words  | 9 Pages

    Founded in Sweden at 1943 by Ingvar Kamprad, IKEA is a value-driven company with the vision “To create a better everyday life for the many people”. As of January 2009, the company became the world’s largest furniture designer and retailer. Currently, IKEA owns and operates 351 stores in 43 countries across Asia, Europe, North America and Australia. The company’s product range consists of 9,500 home furnishing articles, of which they are known to be well-designed, functional and inexpensive.

    Read More

  • Intercontinental Hotel Marketing Strategy

    1794 Words  | 8 Pages

    Intercontinental Hotels is using the market differentiation strategy in segmenting its market into appropriate market divisions based on characteristics of the varying needs and characteristics of the target markets. The company has more than 3500 hotels in over 100 countries with around 535000 guest rooms. It has established a substantial customer base with over 120million customers whose preferences vary based on price and quality expectations. The Intercontinental group is made up of many brands such as the Intercontinental Hotels and Resorts, Holiday Inn Garden Court, Crown Plaza Hotels & Resorts, SunSpree, Holiday Inn, Staybridge Suites, Holiday Inn Family Suites Resort, Holiday Inn Express, Holiday Inn Select, Holiday Inn, and Candlewood

    Read More

  • Marketing Strategy Of Chanel

    1438 Words  | 6 Pages

    Marketing strategies is a thoughtful analysis of a product and the target market to design a series of strategies focusing on the competencies while ensuring to overcome the weaknesses of the product. The core purpose behind devising marketing strategies for any product is to fulfil the marketing objectives or goals set by the organization for the promotion and sales of a product. Chanel is one of a kind brand which every individual is aware of. A high end line of beauty products particularly their perfumes have made the brand spark in the cosmetic industry. The reasons for such high popularity of the product besides the high quality, is the effective marketing of the product.

    Read More

More about Ikea's Global Strategy: Furnishing The World

Open Document