Ikea Company and Its International Retailer Selling
Ikea Company and Its International Retailer Selling - Case Study Example
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From this paper, it is clear that the analysis of internal environment would include strengths and weaknesses of the company. The strength of the company lies in its expert marketing abilities and also its location. These are the two aspects which add to the value of the company’s products. It is also a strong global brand attracting key groups of consumers. The company’s scale and size of the company’s business could make it hard to impose quality standards and maintain quality issues. Moreover, some of the countries making IKEA products also do not implement proper working environment legislation. These could account for company’s weaknesses. Some of the key opportunities which IKEA tries to take advantage of being a consistently increasing in demand for greener products. Also, the demand for low priced products remains high. Also, the present financial conditions in the economy across the world predict a gradual decline in consumer’s preference for expensive products. Also, there is high demand for low water usage and low carbon footprints. The company must design a business strategy which would be socially and economically conscious. Thus it would be based on the present market conditions. It is true that the present financial conditions are favorable towards the production of low priced products but soon the situation is likely to improve and this would consequently change people’s tastes and preferences as well. This means that the company must design a strategy which would be adaptive to the surrounding environment if it seeks to avoid losses due to change in tastes and fashion. Going by the existing opportunities and threats facing the company, IKEA strives to develop an environmental and sustainability plan which is central to its business strategy. The plan seeks to continue operations till 2015 and includes social, economic and environmental issues.
This case study presents IKEA which is a privately owned international retailer selling flat-pack furniture, accessories, and kitchen and bathroom items. The furniture of IKEA is designed to withstand such treatments which are much tougher than regular life…
Therefore, on the basis of our extensive experience, we would like to provide the Local Network with certain recommendations that may help other companies and organizations to achieve better compliance with the following important principles of the Global Compact.
The author states that the reality that IKEA does not have its individual manufacturing amenities; it uses delegated manufacturers all over the globe for provisions makes it more multifaceted and hard to keep trace of the corporation’s suppliers. This business strategy gives IKEA’s the benefit of being capable to alter its suppliers.
Zara is one of the six retailers that Inditex own. Inditex is a worldwide company that specializes in fashions; it designs, manufacture, and sells accessories for children, men, and women, footwear, and apparel through its various retailers located in most parts of the world. Zara is the most and largest internationalized of Inditex’s six retailers (Pahl & Mohring, 2009, p.23).
First, an understanding of the consumer must be acquired to allow for greater segmentation and more refined target markets; second, improved methods of differentiation are necessary to combat competitors. Few retailers can boast of comprehending the consumer's wants and conquering the competition.
In this way, people can associate themselves with the characters of ads which may develop strong emotional appeal. Moreover, instead of taking celebrities for emotional appeal, normal consumers will be given chance to convey the message as it will enhance the impact of
Therefore, the size of company, range of its products and its supply chain strategies make retail store distribution most appropriate for IKEA. Moreover, with this huge product range and global distribution network, direct selling approach is not
However, accessing new ventures is challenging and demands creative management (Parker 2005). Additionally, enrolling in the global market meant building IKEA’s stability when trading as a block within the European Union. As such,
The founder of the business which is known as Ingvar Kamprad is old enough not to run the business, but he steps in not to run it but on how the company is run. Apart from giving advice to his founded company, he is believed to be the richest is his country. The company was founded in 1943, and it is based in Sweden.
4 pages (1000 words)Essay
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