In the current era, extent of competition among corporate firms has significantly increased with rise in scope and scale of business internationalization. The success of a business firm in the contemporary world can be analyzed from its nature of international business expansion…
According to a research made in 2008, the company has been considered as the largest furniture retailing firm in the world. Overtime, proportions of discretionary spending of consumers in most economies have increased with rise in per capita. Such changes in composition of consumers’ expenditure have helped to enhance revenues of comfort product producing companies like, IKEA (Peng, 2010). Even so, it is also true that since the global financial crisis, aggregate income generated from the retail sector in the international market has fallen due to recessionary trails in economies. A very strong rival of IKEA, MFI Group Limited (a furniture retailing firm in U.K.) was forced to shut down its business during such critical conditions. So, since 2008, IKEA is facing strategic issues in business. The aggregate sales of the firm were recorded as 20.9 billion in 2009 and annual growth was approximately 1.4% since then (IKEA Group, 2013c). Rather, due to financial crunches, IKEA had to cut down almost 5000 jobs in 2009 (IKEA Group, 2013b). Thus, from the above analysis, it can be claimed that the company needs to frame appropriate productive strategies in business which will help it to expand the scope of business internationalization and increase revenue in the long run. The following context of the paper will study the strategic initiatives that are already undertaken by IKEA as well as suggest ways through which the company would be able to strategically grow in the long run (Twarowska and Kąkol, 2013).
From the above context, it is evident that IKEA is facing problems since emergence of the financial crisis. The company lacks adequate manpower to enhance its overall productivity. Moreover, aggregate demand experienced in company’s domestic market has also fallen. This is evident from the annual report of the company. The gross revenue of IKEA was recorded as US$ 2583982 in 2012 and US$ 2406539 in 2011 (IKEA Group, 2013a). Even so, the liabilities in business ...
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(Ikea Research Paper Example | Topics and Well Written Essays - 5000 Words)
“Ikea Research Paper Example | Topics and Well Written Essays - 5000 Words”, n.d. https://studentshare.net/marketing/636134-ikea.
The name IKEA is an acronym, as it contains the initials of the founder’s name, I and K, and includes E from Elmtaryd, Sweden, where Kamprad grew up and the final A denotes his home parish named Agunnaryd, also in Sweden. Actually, Kamprad involved furniture in the product range only in 1948 and from then onwards, it was an upward growth for IKEA, starting with the opening of their first store in 1958 in Almhult.
The company sells furniture for homes along with other products in Scandinavian-style. IKEA has its reach over 33 countries across the world selling its products in 230 stores while hosting 410 million shoppers every year. IKEA began its operations during the year 1943 in Sweden.
It currently has 316 stores selling its high quality products. In its pursuit to maintain its position in the market, IKEA intends to maintain its sales and even gain further ground through expansion and possibly through the creation of new products. This marketing plan will serve to assist in such pursuit.
The companies provide home and office furniture, wooden, plastic and metallic. Though furniture business is expected to be the most successful business ever, owing to the ever-increasing demand for furniture by a growing population and a changed lifestyle, it has not been so.
IKEA's trademark is good design and function at affordable prices (About IKEA). The company focuses on the needs of many rather than only those who can afford a quality product. IKEA's business idea is and has been a partnership with the customer. Using the IKEA catalogue, the customer chooses the furniture and picks it up at the self-serve warehouse.
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 company was founded in 1943 by a 17-year old boy, Ingvar Kamprad in Sweden. The name of the company is an acronym that is made up of the initials of Ingvar Kamprad, Elmtayrd (the ranch in which he was raised up), and Agunnaryd
cal landscape is its developing and flourishing relations with the US which has brought in regional peace and stability, and strong trade and investment ties (Kamrava 5). Qatar is a member of the WTO and regarding their obligations, there have been reduced tariffs, unnecessary
IKEA has a huge selling margin compare with other companies in the world. The company sold small accessories for homes in Sweden then later the business expanded with a very high rate, and it started making
3 Pages(750 words)Research Paper
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