...Stirling FK9 4LA, Scotland, UK Department of Business Administration, Lund University, P.O. Box 7080, SE-220 07 Lund, Sweden c Department of Communication Studies, Lund University, Campus Helsingborg, PO Box 882, SE-251 08 Helsingborg, Sweden b a r t i c l e in fo Available online 29 September 2010 Keywords: IKEA Retail internationalisation Retail marketing mix Standardisation Sweden the UK China abstract IKEA is often cited as an example of a ‘global’ retailer which pursues a similar ‘standardized’ approach in every market. This paper systematically assesses the degree of standardisation (and adaptation) of four commonly identified retail marketing mix activities – merchandise, location and store format, the selling and service environment, and market communication – within three countries. These countries – Sweden, the UK and China – represent different cultural settings and are markets in which IKEA has been operating for different lengths of time. The data upon which the comparison is based was generated from personal interviews, in-country consumer research, company documentation and third party commentaries. The conclusions drawn suggest that whilst IKEA operates a standardized concept, degrees of adaptation can be observed in customer facing elements, and in the supporting ‘back office’ processes which support these elements. These adaptations arise from differences in consumer cultures and the length of...
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...operators will maintain considerable depth in the type of product that they specialize in selling, usually at premium prices, in addition to providing higher service quality and expert guidance to shoppers. (www.businessdictionary.com) Specialty stores are retail businesses that focus on specific product categories, such as office supplies, men's or women's clothing, and carpet. It isn't the product they sell that determines if a company is a specialty store but rather the breadth of their product offering. If a company could be considered an expert in a certain type of good, it is a specialty store. (www.educationportal.com) Company Introduction IKEA is one of the best private furniture based companies in the world which started in a small village of Agunnaryd in Sweden. A company which has the experience of working for more than 6 decades around the globe, which currently is operating in 40 countries around. IKEA is a company which has always focused itself towards creating a better future for the people by producing reliable furniture at a low cost. The basic concept of the company is based on southern Sweden which has thin soil and poor people and they use their hard work to survive. The genius behind the company made sure that all these values were transferred to the company and its core values were designed around the basic inherited values. IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, and bathroom...
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...FOR IMMEDIATE RELEASE Countdown to the 2013 IKEA Catalogue! Petaling Jaya, 16 August 2012 – Let your imagination run wild with the infinite possibilities of making your precious moments at home come true as we count down to the launch of the much awaited 2013 IKEA Catalogue. In anticipation of the arrival of the new catalogue on 30th August, drop by the IKEA store between 21st to 29th August to visit the larger than life IKEA Countdown Room display that will showcase different room settings every day to inspire you to recreate your special moments at home with your family or loved ones. Experience the magic moments of the IKEA Countdown Room Between 21st to 29th August, the IKEA Countdown Room will feature different room settings of a home every day. From the living room and bedroom, to the kid’s room and kitchen, be inspired to complete your moments at home with IKEA. There will be a host of inspiring and engaging activities and games for the family and friends with attractive prizes up for grabs throughout all of the nine days. Loads of IKEA furniture can be won daily in the IKEA Malaysia Facebook contest from 21st to 29th August as well. Celebrity chef Anis Nabilah, host of TV cooking programmes Icip-Icip and Sesedap, will also be on hand to conduct a cookie baking demonstration. For entertainment, up and coming acoustic guitar player Amir Jahari will be serenading visitors with his mix of soulful and sweet tunes. On 21st August, popular comedian Suhaimi Yusof will host...
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...Scotland, the UK. Ulf Johansson* *Contact author Department of Business Administration Lund University P. O. Box 7080 SE-220 07 Lund, Sweden e-mail:ulf.johansson@fek.lu.se Åsa Thelander Department of Communication Studies Lund Universitety, Campus Helsingborg, P O Box 882 SE-251 08 Helsingborg, Sweden Paper accepted for presentation at the 1st Nordic Retail and Wholesale Conference in Stockholm (Norrtälje), 6-7/11, 2008 Abstract IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international marketing literature, as well as empirical evidence, argue convincingly for the more adaptation (to different markets) in different national markets. But is IKEA so standardized in marketing strategies? So far there are quite few, and very dated, empirical studies of IKEA marketing strategies (yet many refer to IKEA as having a standardized marketing strategy). Here marketing activites are conceptualized to concern: Merchandise - putting together an assortment of products (e.g., national and retailer brands, pricing and pricing strategy, assortment and local variations) Location and store formats - where are outlets established and general set up of the store, i.e., the overall lay-out of the store in terms on number of levels, placing of different...
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...Case Study on IKEA Executive Summary The case study of IKEA has been read, analyzed; and the findings are presented in the report as required. The goal of the report was to analyze the case study of IKEA and then to present the findings as well as performing some tasks that are required in this report. Firstly, some terms that are closely associated with marketing has been described and analyzed. In addition to that, those terms are also discussed in relation with the case study. Brand, Business strategy, retail sector, price sensitive and franchisee are the terms that have been discussed in this report in the first section. In the second section, the required calculation for average number of customers of each sector and average spending of customers has been worked out. A new mission statement for IKEA has also been proposed there along with the justification for the mission statement. In the third section, the importance and nature of SWOT analysis has been discussed and elaborated. It is seen in the case study that IKEA performs a SWOT analysis that supports their process of building strategy. Moreover, the SWOT analysis of IKEA has also been performed and justified. In the fourth section, SMART objectives and some new marketing mix ideas for IKEA has been demonstrated. In the fifth Section, the concept of marketing model and minimizing the threats for IKEA has been included and demonstrated. Ultimately, the report contains what were required...
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...IKEA MARKETING CASE 1. 1. Until now IKEA international marketing strategy has been tightly and centrally controlled by corporate headquarters. However, high local' pressures emerging due to demographic and cultural differences might force the local IKEA shops to take strategic initiatives to respond to local market needs. In this connection discuss the regional headquarters and transnational organization (presented in Chapter 12) as hierarchical 'entry mode' alternatives to the very centralised strategy emanating from IKEA's headquarters. The advantages of having regional headquarters ( feature of divisional structure) are : flexible reaction to local conditions, accountability and be more competitive. However, this implementation could face some problems: strategic focus, economies of scale, loss of efficiency and costs, and finally large commitments. If they pass from regional headquaters to a transnational organization they will obtain differents advantages related to focus on global integration: efficient resource allocation, knowledge Exchange, economies of scale, local focus. But some disadvantges would appear like corporate identity and complexity of the process. 2. IKEA has not yet explored joint venture and strategic alliances strategies. Evaluate the pros and cons regarding these two entry strategies versus the traditional IKEA entry mode of franchising. As we know, strategic alliances appear when parterships between firms where their resources and capabilities...
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...Strategy adopted? http://www.oppapers.com/essays/The-Strategy-Adopted-By-Ikea/740556 1 Explain, in details, the strategy adopted by IKEA, and how it successfully did the positioning. *** At business level strategy Focus Strategies By implementing a cost leadership or differentiation strategy, IKEA choose to compete by exploiting their core competencies on an industry-wide basis and adopt a broad competitive scope. Alternatively, IKEA can choose to follow a focus strategy by seeking to use their core competencies to serve the needs of a particular customer group in an industry. In other words, IKEA focus on specific, smaller segments (or niches) of customers rather than across the entire market. Focused Business Level Strategies involve the same basic approaches as Broad Market Strategies. Focus strategies can be based either on cost leadership or differentiation. Focused Cost Leadership Strategy IKEA that compete by following cost leadership strategies to serve narrow market niches generally target the smallest buyers in an industry (those who purchase in such small quantities those industry-wide competitors cannot serve them at the same low cost). Global furniture retailer IKEA provide customers with “affordable solutions for better living” through use of the focused cost leadership strategy. The company offers home furnishings that combine good design, function, and quality with low prices. IKEA does this by offering low-cost, modular furniture (assembled by customers)...
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...segments: IKEA positions itself as a leading international furniture retailer that provides economical, well-designed and functional furniture. As IKEA’s biggest competitive advantage is the low price, IKEA tries all its best to lower the fixed cost and the variable cost, like building supplier relationships in developing countries to reduce labor and production cost; flat-packaging to reduce the freight fee; use materials in a cost-efficient way and in-house design also reduce the resign cost for IKEA. IKEA also differentiate itself with appealing shopping experience, self-service, as well as developing facilities like childcare, restaurants, and lounge rooms. The Scandinavian design and style is also a niche for IKEA. The target segments of IKEA is price-conscious people, who have tight budgets, like college students, younger adults and new families, who want to make the first furniture purchase, then the IKEA may be a very good choice for them due to its price advantage. Another target segment for IKEA is early adopters. For the modern design and unique shopping environment, people who like innovative things will likely to give it a try to IKEA’s furniture. Benefits & drawbacks to IKEA: The benefit that IKEA gains from its strategy: 1. Its price advantage is very obvious compared with other furniture retailers, which can attract large amount of price-conscious customers. 2. The hip Swedish design and appealing shopping experience is a niche for IKEA. 3. All the IKEA stores...
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...Ikea Strategy in China I. Ikea strategy in China II. Comparison Supor, ASD and Ikea (regarding to cookware) Sources I. Ikea in China IKEA has been in the Chinese market for more than 10 years. Ikea is used to be perceived as having low prices, this also one of the competitive cornerstones of the whole concept of Ikea. But this is not the case in China: here the perception is a fairly exclusive western retailer, a store for the higher middle class. The company realized this and started targeting the young middle class population, which are between 25 and 35 who have relatively higher incomes than the average and a higher education than the average. They are often more open to a Westernized lifestyle, and in most instances. Targeting this segment helped IKEA project itself as an inspirational western brand. This was a huge change in strategy, as IKEA was targeting the mass market in other parts of the world. Chinese see Ikea products as innovative and not traditional. Square tables are for example not traditional (round tables are tradition) and many of the colours used are not traditional to the Chinese. The Chinese Ikea stores have a special set of tea cups for the Chinese...
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...placed in small space on the wall. An additional benefit that will largely attract the fast-moving technology orientated generation is its ability to charge small wireless devices such as mobile phones, iPods and mp3 players. We have decided to stay aligned with the design of our product to be similar to that of IKEA’s products due to its simplicity in look and innovation in design and use. The wood used for the product will comply with forestry management of IKEA and ensure that the area it sourced from does not threaten high conservation values. Product Differentiation It differentiates itself from other home organisers due to its size and the ability to charge small devices. It is also clutter free as it allows you to store just your essential items in a hidden compartment within the unit without displaying all the things like other organisers. Like all other IKEA products this is a self assembling product using medium range Brand Name: Homemaid closely resembles the simplicity of the Swedish Furniture Company IKEA. It closely aligns with the image of the company which designs furniture that is light-weight, laminated wood and easy to assemble. The brand is closely associated with minimalism in furniture designs which provides the consumer with its core purpose yet providing a complete a furnished look in its style. Packaging The packaging for Homemaid will be simple and packed in a flat cardboard...
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...well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. слайд 5 1） What are IKEA's firmspecific advantages? Countryspecific advantages? In China, IKEA has already gone beyond the corporeal concept of household goods, and become a fashion, life taste of live specimens. Many consumers like the decoration in their own homes before to take a look at the IKEA shopping, in the light of IKEA's design Style of dress to their small nest. IKEA’s products are, in fact, smooth, simple and practical follow-oriented features, the rational pursuit of the typical Nordic style, Ikea's design department well to combine art and the market, developed in line with the style of IKEA customers and meet the requirements of the product. In addition to the Chinese mainland IKEA prices somewhat on the high side, the other in the global market, IKEA has been low-cost high-quality image, that benefit from its economic procurement strategy. IKEA in the choice of suppliers for the product, as a whole to consider the lowest overall cost. Although the furniture in the assembly is nothing new, but Ikea is the first to put flat-packed into a mode of operation. It was one sudden inspiration of Ikea staff, he amputated legs of the table, so that not only can be loaded on the table Vehicles, but also reduces the possibility of damage, but also saves the cost of transport. In this way, IKEA has made a problem into a opportunity to create...
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...Application of Critical Success Factor 6 5.0 Discussion of Two ICT’s 9 6.0 How does ICT‘s benefit IKEA company. 14 7.0 Business Case 16 8.0 Cost and benefit Analysis 18 9.0 Conclusion 20 10.0 Refrences 21 * 1.0Executive Summary The purpose of this assignment knows the use of CSF Methodology to identify the ICT that will support IKEA business objective. As we know IKEA is one of the Global furniture companies whose objective is to give inexpensive furniture to all class of people. By this objective our team is able to identify 3 CSF of IKEA * To provide less expensive and better quality product * Creating a Unique Brand image. * To become one in Global distribution network. Further we identified IKEA ICT which supports business process in gaining competitive advantage .By continuous process improvement and Design and product development IKEA was successful in this industry. We have also explained few examples of IKEA technology in improving their inventory and production management. There is a business case on Application portfolio on one such ICT Vendor management Inventory. Detail discussion on implementing this ICT how IKEA is benefited in their Global distribution and inventory management. By end of this assignment we know how information technology and by using this technology in organisation we can reach heights of success. * 2.0 Introduction IKEA was founded by Ingvar Kampard. It has 315 Stores in 41...
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...Today, IKEA is the world’s largest furniture retailer and it is also internationally known as home furnishing retailer. IKEA always concern for people and the environment. Besides that, it also responds to the public and customer’s rising concern for sustainability in its choice of product range, suppliers, stores and communication. However, there are still problems faced by IKEA from the aspect of organization development that requires changes to take place in order for the organization to improve efficiency and effectiveness of its existing operations and also to ensure that goals and objectives of the organization can be achieved. The first problem encountered by IKEA is the size and scale of its global business. IKEA is known as the world’s largest furniture retailer and carries a range of 9,500 products, including home furniture and accessories. It also means that IKEA’S outlet is widely establish in many other countries. Thus, this could make it extremely hard to control in terms of its standards and quality. So they must figure out some solutions to deal with the problem which will bring benefits to whole organization. Also, the quality of the products in each country may be slightly varied from others. For example, some countries where IKEA products are manufactured do not implement the legislation to control working conditions. Hence, this could represent a weak link in IKEA’S supply chain and also affecting consumer’s view towards IKEA’S products. In terms of that...
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...businesses of all sizes (Market Research Bulletin, 2009). To develop a marketing research approach, a company will look to do a consumer analysis, an industrial analysis, and develop a marketing mix that will best suit the organization and the consumer. In a consumer analysis, some areas to look at are demographics, psychographics, behaviors, and geographical consideration. In an industrial analysis, the company will do a competitor analysis (Perreault & McCarthy, 2004). There are many possible ways to meet the needs of customers. There are so many variables, a company needs to be able to organize them to simplify the selection for that organization’s marketing mix. All the variables are reduced down to four basic variables: product, place, price, and promotion. All other variables will be listed under these four variables. All four Ps are needed in the marketing mix, and in fact, should be tied together (Perreault & McCarthy, 2004). This paper will discuss and describe the elements of the marketing mix. It will also describe how each one of the four elements of the marketing mix impacts the development of IKEA’s marketing and tactics. First of the four variables is the product. Developing the right product for the target consumer is the main area of concern for this variable. Some products can be tangible products that can be bought and sold. However, not all products are that of physical goods....
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...Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case Study ...
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