Crowesl M3 A2
IKEA Analysis Report
Sherry L. Crowe
Argosy University
April 16, 2015
IKEA Analysis Report
Having a successful company takes a lot of work and researching. You see a lot of big successful firms go out of business after many years of being open due to lack of marketing and not being able to keep up with the rapid growing competition. It takes the integration of sales, marketing, front of the line staff and knowing your customers wants and needs to be successful for decades. Not listening to customer demands could be detrimental to your organization. Even if you are successful now, another competitor can rise and take away your market share.
An organization should not only care about sales and revenue growth, they need to also be conscience about the environment and care about the working environment of their employees. IKEA is a Swedish company that dominates in the furniture industry and is very successful with their sales and marketing strategies. They are also very conscience about the external environment. They have been in the foreign market since 1973, they currently have stores in over 37 countries and are continuing to grow (most recently Asia). By following the traditional pattern of globalization, first operating in countries with similar cultures and then expanding to the foreign market, they were able to have great international success (Burt, Johansson & Thelander, 2011). We will discuss in detail why IKEA strategies are so effective and why other organization should learn from their current success.
IKEA’s marketing There are generally four retail marketing items: merchandise, location and store format, the selling and service environment and market communication. Merchandise is the item you are selling to the consumer inside the store. In marketing terms, being creative and making the items attractive to lure customers into the stores (Burt, Johansson & Thelander, 2011). Location and store format means
Sherry L. Crowe
Argosy University
April 16, 2015
IKEA Analysis Report
Having a successful company takes a lot of work and researching. You see a lot of big successful firms go out of business after many years of being open due to lack of marketing and not being able to keep up with the rapid growing competition. It takes the integration of sales, marketing, front of the line staff and knowing your customers wants and needs to be successful for decades. Not listening to customer demands could be detrimental to your organization. Even if you are successful now, another competitor can rise and take away your market share.
An organization should not only care about sales and revenue growth, they need to also be conscience about the environment and care about the working environment of their employees. IKEA is a Swedish company that dominates in the furniture industry and is very successful with their sales and marketing strategies. They are also very conscience about the external environment. They have been in the foreign market since 1973, they currently have stores in over 37 countries and are continuing to grow (most recently Asia). By following the traditional pattern of globalization, first operating in countries with similar cultures and then expanding to the foreign market, they were able to have great international success (Burt, Johansson & Thelander, 2011). We will discuss in detail why IKEA strategies are so effective and why other organization should learn from their current success.
IKEA’s marketing There are generally four retail marketing items: merchandise, location and store format, the selling and service environment and market communication. Merchandise is the item you are selling to the consumer inside the store. In marketing terms, being creative and making the items attractive to lure customers into the stores (Burt, Johansson & Thelander, 2011). Location and store format means
References: Andersen, M. & Skjoett-Larsen, T. (2009). Corporate Social Responsibility in Global Supply Burt, S., Johansson, U Chains. Supply Chain Management: An International Journal 14/2 (2009) 75-86. Caglar, D., Kesteloo, M Edvardsson, B., Enquist, B. (2006). Values-Based Service Brands: Narratives from IKEA. IKEA’s Marketing Strategies in Sweden, The UK and China. Journal of Retailing and Consumer Services 18 (2011) 183-193 Landers, R. (2011). Unfolding the IKEA Effect: Why We Love the Things we Build. Managing Service Quality Vol