Post on 23-Jan-2018
HISTORY
Founded in 1943 at Sweden by Ingvar Kamprad.
IKEA is international home furnishings retailer
387 stores in 48 countries.
Strength :A global brand.Well designed ,low prices.wide range of products and styles.friendly atmosphere.
Weakness :Swedish designs may not appeal to American market.assembling issue may be unappealing.furniture is not built to last life time.
Opportunitiesdemand for greener productstrends in current financial climatedemand for reduced wastage
Threatsocial trendsmarket forceseconomic factors
Objectives of IKEATo produce
affordable productEnsure the
customer finds what they are looking for in
store.
IKEA strategies
Product strategy
Wide range of products.Stylish and low priced.Designs its own furniture.Flat packaging.Diversify product line and depth.Product adaptation according to need of different markets.
Promotion strategy
Advertisement campaigns. After sale service.Upon entry to IKEA store shoppers are guided properly.
Market development strategy
Target new segments and enter markets with existing products.
Innovative steps of IKEA
control the supply chain using lighter packing materials.
Stores are located at good distance.
saves electricity by using solar panels.
Located all over the world.Easy access to IKEA. Affordable pricing. Adaptability.Easy transportation. Many suppliers.
Q1. What are some of the things IKEA is doing right to reach consumers in different markets? What else could it be doing?
what else can IKEA do -
Expand its product line. Expand its business into interior designing.Use environment friendly technology.Product customization.Use of social media.IKEA can expand to new markets e.g. Asia
Pros :Good furniture at low cost.Simplicity in furniture assembly.Uniformity all over the world. Ensuring customer loyalty by offering rewards.Product names.
Q2. IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy.
Cons :
No innovation in products.Uniformity can turn into rigidity.Visiting an Ikea store costs money even though purchasing its products saves it.Less inclination to customer service.People have to assemble their own items might be problematic.
Summary
Introduction and historyVision and MissionMarketing mixSWOT AnalysisIKEA StrategiesInnovative plansCase study answers.