Preview

Ikea Case

Best Essays
Open Document
Open Document
1960 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ikea Case
Individual Assignment: Case on IKEA: Expanding through franchising to the South American market.
The objective of this paper
1. Until now, IKEA’s international marketing strategy has been centrally controlled by corporate headquarter. However, the case study identifies a number of challenges facing the company including culture and demographic differences around the world. How should IKEA react to this challenge? 2. How attractive is Brazil for IKEA? And which market entry method do you recommend, and why? Introduction
IKEA is a Swedish furniture company which has a unique design and applied a traditional internationalization strategy as centralisation. Certain marketers agree that the standardized marketing strategy which focuses on the similarities among cultures and develops global marketing plans eliminating the need of culture can be used for creating strong global brands and expanding business globally without any problems. The marketers employ this approach as a result of they see the world as a one large market in which difference between cultures have diminished and consumers have developed similar needs and want independent of location. However, there has been a long debate on the issue why many marketers try to change the approach of internationalization from standardization to adaptation which focuses on cultural uniqueness for each local market.
In this essay will discuss “How should IKEA adjust its conservative strategy as regardless of cultural boundaries, How attractive is Brazil for IKEA, and which market entry modes do you recommend, and why?” Moreover, this paper also focusing on the advertising strategy related to a cross culture as it is an important appearance for IKEA in the global market so IKEA need to understand the nature of people in difference countries.

Overview of case study
From the case study of IKEA, IKEA used franchising as an entry method for expanding to Brazilian market. It brings several problems



References: Chang, L.T. (2004), “China Eases Foreign Film Rules”, the Wall Street Journal, October 15, p. B2.   IKEA Annual Report (2002), www.ikea.com

You May Also Find These Documents Helpful

  • Satisfactory Essays

    IKEA’s senior management has in the past pursued an aggressive expansion policy, but management is currently changing direction, adopting a slower rate of expansion and investing in existing stores. The company plans to increase sales by 10% a year to 2020, thereby doubling annual sales revenues. Management is concerned about how expansion in the BRIC countries, particularly India and China, is pursued. There are fears about preserving the…

    • 765 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    2).What are the cultural factors which make expansion abroad in retailing difficult? What has made it possible in IKEA's case?…

    • 437 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ikea Case Study on Marketing

    • 22858 Words
    • 92 Pages

    Bibliography: 1. Anonymous, Reporting to the CEO at IKEA, Corporate Responsibility Management. London: Oct/Nov 2005.Vol.2, Iss. 2; pg. 6, 1 pgs 2. Anonymous, GREAT NORDIC CONQUERORS; Campaign. Teddington: Apr 22, 2005. pg. 34, 2 pgs 3. Björk, S (2000) IKEA: Entreprenøren – Forretningsideen – Kulturen, Index Publishing AS, Oslo 4. Brand Papers: Tour of the Vikings, Brand Strategy. London: Apr 5, 2005. pg. 34 5. Business Week, Need a Home to Go with that Sofa?, New York: Nov 14, 2005., Iss. 3959; pg. 106 6. Capell K., with Sains A. in Stockholm, Lindblad C. in New York, Palmer A. T., IKEA, Business Week. New York: Nov 14, 2005., Iss. 3959; pg. 96 7. Churchill G. A., Badania marketingowe : podstawy metodologiczne, Warszawa, Wydaw. Naukowe PWN 8. Cowlett M., IKEA furniture dances down the red carpet, PR Week. (London ed.). London: Jan 26, 2007. pg. 21, 1 pgs 9. Cuthbertson R., Ikea 's card is a global drive for local people, Promotions & Incentives, London: Mar 2007. pg. 13, 1 pgs 10. Doole I. and Lowe R., International Marketing Strategy-Analysis, development and implementation, the fourth edition, P66 at www. thomsonlearning.co.uk 11. Dow S. C., Economic methodology: an inquiry”, Oxford University Press Inc., New York, 2002 12. Elton S., A house for Ivar, Billy, and you; Maclean 's. Toronto: Apr 17, 2006.Vol.119, Iss. 16; pg. 36, 2 pgs 13. Kaczmarczyk S., Zastosowania badań marketingowych : zarządzanie marketingowe i otoczenie przedsiębiorstwa, Warszawa : Polskie Wydawnictwo Ekonomiczne, 2007 14. Kotler P. and others, Principles of Marketing, 2nd edition, Prentice Hall Inc. London 1999 15. Lewis E., „Great brand stories. Great IKEA! A brand for all the people.”, Cyan Communications Limited; 2005 16. Mooij, M. de (1997) Global marketing and advertising, understanding cultural paradoxes…

    • 22858 Words
    • 92 Pages
    Satisfactory Essays
  • Powerful Essays

    Ikea Way in Russia

    • 2743 Words
    • 11 Pages

    IKEA has a strong brand and a unique vision. They want to transfer the IKEA culture and values into Russia. Russian stores have become a training site to teach each employee IKEA values.…

    • 2743 Words
    • 11 Pages
    Powerful Essays
  • Satisfactory Essays

    IKEA which may be the world’s most successful global retail has grown into a global cult brand with 230 stores in 33 countries that host 410 million shoppers. To achieve global success, IKEA took some actions, for example, in order to avoid the costs associated with shipping the product all over the world. IKEA works with suppliers in each of the company’s big market and IKEA had to adapt it offerings to the tastes and preference of consumers in different countries. Besides, globalization of market and production are also an important factors of IKEA’s achievement.…

    • 435 Words
    • 13 Pages
    Satisfactory Essays
  • Better Essays

    References: 1 Abrahamian, K., & Martin, B. (n.d.). Master of Arts Thesis Global Marketing through Local Cultural Strategies : A Case Study of IKEA, (September 2013), 0–56.…

    • 1797 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    IKEA is proud to find the most cost efficient manufacturers for their products to in turn sell for a lower price to their customers. By replacing quality with low prices, IKEA has to step out of the normal standard of what a traditional furnishing store offers and take part in what is called a reverse positioning marketing strategy. Examples of the things that IKEA lacks are customer contact with employees, deliveries, assembling purchases, quality of products, style and culture adjustment. Lack of American adaptation has hindered the growth of IKEA by preventing them from being as successful as they are in other countries.…

    • 2139 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    IKEA in russia

    • 1310 Words
    • 6 Pages

    Today, we present our analysis of the adaptation of a multinational in an emerging country. We chose to study the Ikea’s case because the company is the leader in the field of interior design and furniture. In addition, we chose to focus on the implementation of Ikea in Russia because the cultural differences between Russia and Sweden are important. This cultural distance shows the importance of brand policy and how it could have an impact on sales as well as its reputation due to poor market research.…

    • 1310 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Ikea

    • 2204 Words
    • 9 Pages

    This research paper studies the Strategies followed and used by international retail giant IKEA, which is well known for its affordable, modern designed furniture products which can utilize for household and offices. Being a largest furniture retailer with 332 stores in 44 countries IKEA will soon open stores in India, Egypt, Indonesia, South Korea, New Zealand, Latvia, Estonia, and Serbia.…

    • 2204 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    The globalization of market refers to the merging of taste and preferences of consumers from all around the world resulting in an emergence of a single global marketplace. IKEA has thus used this occurrence to their advantage by shaping their business model to emphasize on standardization, customization and functionality. IKEA’s motto “ One design suits all” is a simple yet effective business model that has helped them cater to all the diverse markets around the world today. In general IKEA products are standardized across markets and have high functionality that cater to the needs of people in every country. IKEA also functions on the principle of offering furniture at low and affordable prices. Despite its low costs, products are still of high quality due to the ability to mass produce their products. Similar to Macdonaldization, IKEA has been able to answer to the uniform taste of consumers in todays society and at the same time spread its own culture identity internationally. IKEA only uses different marketing and advertising strategies for their various markets to better cater to the local consumers.…

    • 432 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Brewster,.C, Sparrow, .P. Vernon .G. (2007) International human resource management, (2nd edn). London chartered institute of personnel and development. Pp 40 Buchanan,.D.A. and Huczynski,.A.A.(2010) Organizational Behaviour,7edn,Pearson Education Ltd. Blomqvist, .K. (2006) ‘Cross culture management comparison between ikea Canada and Ikea Sweden’ ,Stockholm University Steve Burt., Ulf Johansson and Åsa Thelander.(2008) ‘Standardized marketing strategies in retailing? IKEA’s marketing strategies in China, Sweden and the UK’, 1st Nordic Retail and Wholesale Conference, Stockholm (Norrtälje), 6-7 November. [Online] Available at: http://www.hakonswenson.com/publikationer/NRWC%202008/standardized%20marketing%20strategies%20i n%20retailing%20IKEA.pdf(Accessed: October 2011) Kataiina Kling and Ingela Goteman. (2003) ‘IKEA CEO Anders Dahlvig on international growth and IKEA 's unique corporate culture and brand identity’, Academy of Management Executive, 17(1), pp. 31-37. Hay.M.(2006) ‘SERVICE LEADERS Values-based service brands: narratives from IKEA’, Managing Service Quality, 16 (3), pp230-246. Emerald Group Publishing Limited [Online]. Available at:www.emeraldinsight.com/0960-4529.htm (Accessed: October 2011) Ulf Johansson and A ̊ sa Thelander. (2009) ‘A standardised approach to the world? IKEA in China’, International Journal of Quality and Service Sciences, 1 (2), p199-219. Emerald Group Publishing Limited [Online]. Available at: www.emeraldinsight.com/1756-669X.htm (Accessed: October 2011) Jonsson .A. (2008) ‘A transnational perspective on knowledge sharing: lessons learned from IKEA’s entry into Russia, China and Japan’, The International Review of Retail, Distribution and Consumer Research, 18 (1), p17–44. Taylor & Francis Group [Online]. Available at: http://www.tandfonline.com/doi/abs/10.1080/09593960701778044 (Accessed: October 2011) Li, Q.W. (2007) ‘IKEA in China: Facing Dilemmas in an Emerging Economy’, ASIAN CASE RESEARCH JOURNAL, 11 (1), P1-31. World Scientific Journal [Online]. Available at: www.worldscinet.com/acrj/11/1101/S0218927507000849.html (Accessed: October 2011) Veronika V. Tarnovskaya and Leslie de Chernatony. (2011) ‘Internalising a brand across cultures: the case of IKEA’, International Journal of Retail & Distribution Management, 39 (8), p598-618. Emerald Group Publishing Limited [Online]. Available at: www.emeraldinsight.com/0959-0552.htm (Accessed: October 2011) IKEA (2011) Inter IKEA Systems b.v. Available at: http://www.ikea.com/ (Accessed November 2011) The Open university(2011) organisational culture. Available at: http://openlearn.open.ac.uk/mod/oucontent/view.php?id=403948§ion=3 (Accessed 10 November 2011)…

    • 1407 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    One thing that makes IKEA becoming the best known global furniture retailer in the world is its marketing strategy. IKEA is a strong ban and many people across the globe think of IKEA when they thought about furniture. The key success of marketing strategy is IKEA’s standardization. IKEA stores around the world look alike and they all contain core value of organization’s culture. It looks and operates the same in every market markets. However, IKEA stores have to adapt to local markets.…

    • 538 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    IKEA

    • 547 Words
    • 3 Pages

    IKEA is a well-known global brand with hundreds of stores across the world. In order to improve performance, it must assess its external and competitive environment. This will reveal the key opportunities it can take advantage of and the threats it must deal with. IKEA responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. Through this, IKEA is able to generate the strong growth it needs to retain a strong identity in the market.…

    • 547 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    decades, and the issue is even more relevant now than when it was first examined (Elinder…

    • 5803 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    It is the beginning of 2011, and Ingvar kamprad, founder of the Swedish furniture retailing giant IkEA, is concerned 'his' firm may be growing too quickly. he used to be in favour of rapid expansion, but he has now started to worry that the firm may be forced to close stores in the event of a sustained economic downturn. on the other hand, IkEA is active in nearly all the world's con- tinents, though to a lesser degree in South America. kamprad wonders if this continent, and in particular Brazil, could be a future growth market for IkEA.…

    • 4118 Words
    • 15 Pages
    Powerful Essays