Name Date Course Section/# Questions and Answers Q1) When a firm seeks to grow and/or to penetrate a new market, there are a number of determinants that must be understood and actuated upon in order for a successful result to be realized…
As such, the author of this brief marketing case study will seek to implement this approach with regards to IKEA’s proposed expansion and further integration/penetration within the United States market. According to the previously mentioned chapter’s rubric, the first letter of the DEFINE acronym states that the firm in question must define the problem. Obviously, this may seem as a simple approach; however, the reader would likely be horrified to know just how many very large and otherwise successful firms had sought to work out the problem that they saw as represented without seeking to define or recognize the full scope of the ancillary and tangential issues that were acting on the exemplification of the problem within the firm. With relation to IKEA, the definition of the problem will herein be discussed. IKEA is faced with a situation in which although its product line is understood and appreciated, there is a great deal more market engagement and customer utility that the firm can ultimately be gained should the popularity of IKEA in the United States begin to mirror that what is experienced in Europe and other markets in which it competes. As the rubric of the article in question states, the second determent in the “DEFINE” acronym is that of enumeration of the decision factors. This of course follows that once the issue has been defined the next step would be to focus upon the key hinge points that would most assist in providing a plan of action with regards to future steps. In the case of IKEA, this automatically references the ability of enumeration with regards to recognizing the key strengths and weaknesses that exist within the firm. Although one may be convinced that they should focus exclusively upon the weaknesses and outright ignore the strengths due to the fact that they are already in existence and bear little correlation to the issue at hand, this is very much the wrong approach. Rather, the correct approach of the enumeration phase is to consider both strengths and weaknesses simultaneously as a means of ensuring that weaknesses are appropriately listed so that actionable plans can be drawn to minimize or reduce entirely their existence and plans can be effected which lead to retention of the key strengths that are noted. For the case of IKEA, the key weaknesses that the article has illustrated revolve around their strong focus on sustainability, brand image, added amenities, do it yourself approach, corporate structure, and low cost structure. Likewise, the key weaknesses that should be enumerated upon are the limited promotional expenditures, weak online support, limited customization, the do it yourself approach being seen as cheap and law quality, economic conditions, demand for convenience, and the popularity of stylish cutting edge sustainable products. Within the given rubric, the next step would be to consider the relevant information that the preceding two steps have detailed. Within the case of IKEA the relevant information is the fact that the firm has been considered by many within its customer base as representing the same quality products that they might purchase at Wal-Mart or Target. Similarly, the firm should realize the most relevant information that the preceding steps of analysis has yielded is the fact that its current “thrifty” marketing concept will likely do little to re-engage customer opinion ...
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In the year 2010, Bulgaria attained a gross national income of US$ 6,280 per capita. The country experiences a progressive growth economically in the recent times despite its low income levels in the EU. The country pockets 768 Leva, equivalent to 393 Euros on average monthly basis (Mejra, Kavkler and Sebastijan 312).
Ikea President Josephine Rydberg-Dumont asserts that the “shopping experience is something that is exciting and talks to many different people.”1 Ikea makes shopping exciting because of its low prices and because people know that Ikea offers quality products too.
Now what method could they possibly use to do such a thing The answer to that is motivation.
We define motivation as the process that counts for an individual's intensity, direction, and persistence of effort toward attaining a goal. (The IKEA Way of Motivation 2004) Motivation actually happens when a being encounters a certain situation or instance that triggers his/her drive to do something.
Based on consumer feedback, IKEA introduced American style furniture with core IKEA values such as easy-to-assemble, portable etc. Secondly, co-workers at IKEA stores are trained in such a way that they provide complete knowledge to
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
It was founded by Ingvar Kamprad, a 17 years old guy who is now categorized in world’s richest people of 2013. The company is famous for its modern architectural designs of furniture. There are many other attributes which are contributing in the key success
IKEA manufactures the semi-finished and final products mostly with own sources, thereby experiencing scale economies in manufacturing. IKEA is a popular brand in the European market, which is also considered to be the largest exporting organization of Sweden. The company is successful across all marketplaces because of superior manufacturing.
12 Pages(3000 words)Case Study
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