IKEA has become one of the most successful furniture retailer’s in the world. IKEA low-cost-approach to doing business and innovative marketing and brand identity has allowed IKEA to mold and convert their brand image and company to become a lifestyle oriented company. IKEA was one of the pioneers towards globalization by offering furniture that was sold unassembled to its clientele therefore it could be shipped more securely and economically and consequently sold at the lowest possible costs to their customers. The company carefully adapted their corporate structure, business model, and culture to maintain and build their brand image, while carefully adapting their product offerings and marketing to match the preferences, customs, and needs of their local clientele. IKEA has become much more than a furniture merchant, it embraces customers with lifestyle that embraces good taste and recognizes value. The company has thrived in the global market where others competitors have not succeeded in penetrating. The key strategy to IKEA’s global success has been in keeping in line with their original philosophy of success which has been to provide unique, functional, simplistic but beautiful furniture designs and products at a low cost. This unrelenting pursuit of efficiency and frugality has permeated throughout the corporate culture and structure (Quickmba, 2011).
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IKEA has become one of the most successful furniture retailer’s in the world. IKEA low-cost-approach to doing business and innovative marketing and brand identity has allowed IKEA to mold and convert their brand image and company to become a lifestyle oriented company…
This paper presents brief report on the management strategy of IKEA and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT, PESTLE, Porter’s Five Force analysis etc will be included in the paper.
II. Competitive Advantages IKEA’s success can be summed up by saying it “provides a one-stop sanctuary for coolness” (BusinessWeek). Specifically, IKEA outlets are not just furniture stores, they are gathering spots where families can have a social outing (Normann & Ramirez).
is of franchise type. Contemporary designs and low prices are the hallmarks of which made IKEA a cult brand globally. Environmental sensitiveness of the company is well recognized by the consumers. The other companies that specialize in Nordic furniture design the in the US, whose prices are comparatively very high are Design Within Reach, Minimalista, Boconcept and Tema.
The company has gained worldwide recognition through innovative design and unique customer service. The study has dealt with how various strategic management models can bring about the betterment of the organization and also helps to form a strong global footing.
The example of opening an outlet near the Metro station was a big mistake. The fall of the Russian economy and the subsequent revaluation of the currency made many multinational companies to leave Russia. IKEA stood firm among the ruins to earn reputation and trust.
This home furnishings retailer owes its success to its low priced and wide product range, smart purchasing and distribution activities and retail function (Nattrass and Altomare, 1999).
Based on the history of IKEA given in the Appendices section, this report aims to evaluate the business strategies of IKEA.
Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.” (IKEA world website) This plain-speaking, deliberately
This is achieved by employing cost cutting solutions that do not affect the quality of the product. IKEA through its various marketing strategies has created a steady demand for its products. The company also prides itself in
According to the report for most businesses, this has been challenging to attain due to the prevailing harsh economic times globally, which have solely contributed to challenging business conditions for businesses in the world today. Every business attempts to adopt business strategy that they deem to be effective and efficient.
10 pages (2500 words)Essay
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