Y concept which makes them the sovereign furniture retailer in the industry. In this report, the first scope of the discussion will be accentuating on the segmentations and target market segments on how IKEA is based according to their company standards with different approaches and ways of adopting the concepts. Thirdly, the customer value on IKEAs and will also focus on the three strategies that they have adopted and the way they create. As they have become popular over the years through having quality and affordability products.
They carefully select the manufacturer of its products. Our customers have recognized that in tough times IKEA has the better home furnishing offer. IKEA needs to ensure that its business is targeted to reach people who are likely to be or become IKEA customers in terms of their demographic attributes and their likelihood to travel to the store.
IKEA requires a solution to maximize their return on investment while expanding their appeal and maintaining their dominant market position. Joint Ventures IKEA will need to look at joint ventures and strategic alliances to become successful in the Indian market.
These in turn will have to form alliance and joint ventures to raise enough capital to develop the links necessary to form a successful entity.
This is meant to reduce the strategic risk that may result from political, legal and financial issues. By developing a relationship with local suppliers, the suppliers can provide valuable input into the opportunities and threats.
Joint Ventures mean even more. Financial strategy The cost of establishing a new store approximately 22, items is quite high when considering: Investment money taken from reserves of other operations may not carry any interest cost and therefore be a cheaper source of investment.
In the case of India, if IKEA decides to franchise its operations there, the problem of financing the operation is taken care of through franchising fees and royalties. Profits Profits in India should be maintained at a similar level to other countries.
Since the per capita income of Indian peoples is substantially lower than other markets, product will have to be modified to lower price categories and volumes will have to increase to offset the difference. Except in the largest cities, operation costs should be lower than Western Europe.
Labor costs are substantially lower in India, but the IKEA store concept requires little human resources, so cost reductions must rely on other overhead such as store, warehousing, power, taxes and advertising.
Probably the most effective method for cost reduction is to source a higher percentage of goods from India.
Even Scandinavian designs could be reproduced in India. Instead, it is using sub contracted manufacturers all over the world for supplies. All research and development activities are, however centralized in Sweden.
In other words, they have to assemble the products themselves. To facilitate shopping, IKEA provides catalogs, tape measures, shopping lists and pencils for writing notes and measurements. Effective marketing through catalogues usually attracts the customer at first, what keeps customers coming back is good service.
IKEA believes that a strong in-stock positioning which the most popular style and design trends are correctly anticipated is crucial to keep satisfied customers. For that, IKEA depends on leading-edge technology. IKEA has developed its own global distribution network.
By utilizing control points in the distribution cycle, the firm is able to insure timely delivery of products to retail stores all over the world.
Internationally, these stores range in size from 20, to 30, square feet in Hong Kong and in Singapore tosquare feet in Stockholm, Sweden.
Expensive solutions to all kinds of problems are often signs of mediocrity. IKEA also keeps costs down by packing items compactly in flat standardized embalages and stacking as much as possible to reduce storage space during and after distribution in the logistics process Economist, IKEA management strategy IKEA is a very successful multinational corporation, which indicates that earlier discussed focused generic, or long-term strategy of cost leadership and product differentiation has served it well.
IKEA approaches unknown, small, high risks markets by franchising. So this company actively expands in this field as well. IKEA has a lot of subsidiaries in many countries of the world. Franchisee shaves to carry basic items, but have the freedom to design the rest of the products.
Cultural strategy Few countries in the world have such an ancient and diverse culture as India. The diversity lays the continuity of Indian civilization and social structure from the very earliest times until the present day.Published: Mon, 5 Dec An analysis of the strategic position of IKEA has shown that IKEA has different strategic positions in different markets.
This assignment will analyse IKEA’s strategic position, identify and evaluate various strategic options. The second scope will be on IKEA’s 5 positioning strategies where IKEA’s channel of distribution to propagate their products, differentiation of products and services being offered, and the advantages of trained personnel within the company and how the reputation of the company being upholds.
IKEA Marketing Strategy Essay Example.
An analysis of the strategic position of IKEA has shown that IKEA has different strategic positions in different markets. This assignment will analyse IKEA’s strategic position, identify and evaluate various strategic options.
IKEA is a world renowned furnishing company reputed for selling Scandinavian-style furniture and other home-based goods. The company has over stores, with operations carried out in over The strategic position of the Ikea company.
Print Reference this. Disclaimer: IKEA’s Strategic Position. Johnson et al. (, p13) stated that: Marketing Essay Writing Service Free Essays More Marketing Essays Examples of Our Work Marketing Dissertation Examples. The second scope will be on IKEA’s 5 positioning strategies where IKEA’s channel of distribution to propagate their products, differentiation of products and services being offered, and the advantages of trained personnel within the company and how the reputation of the company being upholds.