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How different is different? IKEA's challenge to appeal to local tastes globally.
Brief information about IKEA company.
IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds, chairs, and desks, appliances and home accessories. The company is the world's largest furniture retailer.
Founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his hometown (Agunnaryd, in Småland, South Sweden).
The groups of companies that form IKEA are all controlled by INGKA Holding ., a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch foundation. The IKEA trademark and concept is controlled by a series of corporations that can be traced to the Netherlands Antilles and to the Interogo Foundation in Liechtenstein.(Information from Wikipedia)
Case Questions.
1. How would you describe IKEA's strategies to overcome the problem that the American market prefers the part of range that IKEA does not actually want to emphasize? In America low-income consumers want traditional and conventional styles products, but IKEA prefer Scandinavian modern and more patronized styles products. To overcome this problem the company start to use educative strategy which is long-term strategy and focus persistently on lower-income classes exposure(publicizing) to Scandinavian and modern styles over time. In this way, when the consumers visit to the IKEA store they want to buy traditional styles product but also see modern and contemporary product. The exposure of consumer will educate consumer to think about new products.
2. How do you think IKEA should manage it? Should they change their own product range or should they change(educate) consumers? Why? In spite of educating consumers is
Brief information about IKEA company.
IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds, chairs, and desks, appliances and home accessories. The company is the world's largest furniture retailer.
Founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his hometown (Agunnaryd, in Småland, South Sweden).
The groups of companies that form IKEA are all controlled by INGKA Holding ., a Dutch corporation, which in turn is controlled by a tax-exempt, not-for-profit Dutch foundation. The IKEA trademark and concept is controlled by a series of corporations that can be traced to the Netherlands Antilles and to the Interogo Foundation in Liechtenstein.(Information from Wikipedia)
Case Questions.
1. How would you describe IKEA's strategies to overcome the problem that the American market prefers the part of range that IKEA does not actually want to emphasize? In America low-income consumers want traditional and conventional styles products, but IKEA prefer Scandinavian modern and more patronized styles products. To overcome this problem the company start to use educative strategy which is long-term strategy and focus persistently on lower-income classes exposure(publicizing) to Scandinavian and modern styles over time. In this way, when the consumers visit to the IKEA store they want to buy traditional styles product but also see modern and contemporary product. The exposure of consumer will educate consumer to think about new products.
2. How do you think IKEA should manage it? Should they change their own product range or should they change(educate) consumers? Why? In spite of educating consumers is