Hence, purpose of this essay is to understand marketing environment of Indonesian furniture industry and assume what can be plausible marketing strategy of IKEA to achieve competitive advantage over existing player in Indonesian furniture market. Understanding strategic dimension of international marketing mix of IKEA will help the study to predict viability of any marketing strategy of the company from international perspective. The study will also try to understand existing international marketing and strategic activities of the company in order to validate the proposed international marketing mix for IKEA in Indonesia. There are two major limitations are associate with this essay, 1- the researcher has used statistical data prior to recession in order to decrease the scope of outlier intervention in the growth projection and 2- the researcher has only relied on secondary data in order to prepare this report. Business Background of IKEA IKEA is renowned Dutch furniture retailer with Swedish origin and the company has established its presence over 30 countries across the globe. The company is headquartered at Delft, Netherlands and it was established by Ingvar Kamprad in the year 1943 (IKEA PS, 2012). The furniture retail giant has established its strong presence across 35 countries with the help of more than 300 retail outlets. According to report published by Euromonitor International (2009), IKEA is the biggest furnishing retailer in the world and earns annual revenue more than €20 billion from its worldwide operation. IKEA offers customized home furnishing solution, readymade furniture, and functional home furnishing products to customers. Scandinavian design and low price are the unique selling proposition (USP) of the Swedish furniture manufacturer (IKEA PS, 2012). Target customer of the company includes middle income families, couples, young people and students (IKEA, 2013a). According to report published by Euromonitor International (2009), IKEA targets those customers who are ready to participate actively in the sales cycle process, for example, self transporting the furniture parts, self-assembling different parts of the furniture etc. These customers are ready to engage in the service delivery matrix of IKEA in order to get quality furniture in affordable price. Business Operation of IKEA- International Context IKEA used centralized business model in order to maintain its international operations. International operation of the company is channelized and monitored by headquarter of the company whereas product development activities are monitored from Almhult, Sweden. According to IKEA (2011) has reported that, more than 600 million people across the world visit IKEA stores throughout the year whereas there are more than 700 million online visitors of the company website. IKEA maintain an international supplier base of more than 1000 in order to maintain its value chain operation. These suppliers belong to 55 different countries and help
Expansion of IKEA in Indonesian Market Table of Contents Table of Contents 2 Introduction 3 Aim and Objective 3 Business Background of IKEA 3 Business Operation of IKEA- International Context 4 Business Operation of IKEA- Asian Context 4 International Expansion Strategies of IKEA 5 Macro Environment and Marketing Environment 5 Environment Issues 6 Cultural Issues 6 Trading Conditions 7 Marketing Environment 8 International Marketing Mix for IKEA 8 Customer Segmentation 8 Brand 10 Product & Price 11 Place & Promotion 11 Ethical Considerations 12 Conclusion 12 Reference 13 Introduction Aim and Objective This paper will try to shed some light on international expansion strategy of IKEA, which is…
With the rapid growth and development of China, especially after 1987, the level of economy and the life quality of Chinese people increased dramatically. When they have enough money for food and cloth, they shift their interests in other aspects, such as furnishing, to make their life more colorful.
IKEA, from the very start took a different path and was successful in changing this concept. They decided to respond to the needs of the people with regard to home furnishing across the globe. People with different choices, dreams, tastes, needs, aspirations and budgets wanted to modify their home and develop them to make their everyday life better.
Every organization is faced with the problem of utilizing human resources, and hence managing them in some way, from which it may be inferred that HRM is universal (Brewster, 2001; 255) when business conducted across national and cultural borders, the operationalization of an enterprises becomes a little bit more complex.
It has also a Chinese name, 'Yijia' which means fit for home. IKEA is a privately-owned, international, and retailers of affordable home products.
The person behind this is Ingvar Kamprad, a dyslexic, who established IKEA in Almhult, Sweden at the age of 17.
hich means home and to the Finnish word ‘oikea’ which means, ‘correct’ or ‘right.’ The correct pronunciation of IKEA is ‘IPA’ which sounds like ‘idea’. It has also a Chinese name, ‘Yijia’ which means fit for home. IKEA is a privately-owned, international,
es in more than 35 countries around the world (IKEA, 2008b), the company is considered as one of the biggest international retailers of affordable furniture products such as economically designed bed, tables, chairs, vase, plates, and wall shelves among others (IKEA, 2008d).
They decided to respond to the needs of the people with regard to home furnishing across the globe. People with different choices, dreams, tastes, needs, aspirations and budgets wanted to modify their home and develop them to make their everyday life better. IKEA
The company has had various tremendous transformations to its strategies that can be accredited for its success in present times. At the initial stages, their company had some similarities with its competitors. For instance,
Similarly, the increasing number of world population and identification of new markets from developing countries had made many organizations spread their brands towards capturing market share. Because of this, many organizations
12 pages (3000 words)Essay
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