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Ikea in China

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Ikea in China
Ikea In china

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Introduction
IKEA is recognized as one of the reputed brands of Sweden, operating in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others designed accessories and equipments. Although it entered in this segment in the year 1943 in Sweden but very quickly it expanded its operations in the markets of China as well. It is mainly due to its modern architectural stylish designs and eco-friendly nature. This helped Ikea to improve its brand image and profitability by almost 50 percent as compared to previous years. This proved extremely effective for Ikea to enhance its customer bases and reliability in the market among many other rival players (Inter IKEA Systems B.V. 2012). Due to this strategy, the organization also expanded in Norway, Germany and Denmark.
Discussion
In this age of extreme competition, sustainability is extremely tough. Keeping this fact in mind, the organization of Ikea entered in China. However, in order to position itself and its products, it implemented the strategy of premium pricing (IKEA Group sustainable strategy, 2020). According to this pricing policy, the products are offered to the customers at a premium price so as increase its image and distinctiveness in the market as compared to other rival players. By doing so, the profitability and brand value of the organization might also be enhanced thereby amplifying its productivity as well. Not only this by implementing this type of pricing strategy, the organization might attract a wide range of high profile customers within an age-group of 25 to 35 years (Guillén & García-Canal, 2012). As a result of which, the reliability and demand of the products of the organization of Ikea might get enhanced within the market of China among the other existing rival players. Due to which, the net income and total sale of the products might also get increased by 65 percent as compared to other contenders (Inter IKEA


References: Business Today, 2013. How Ikea adapted its strategies. [Online] Available at: http://businesstoday.intoday.in/story/how-ikea-adapted-its-strategies-to-expand-in-china/1/196322.html [Accessed on 26th February, 2014]. Drummond, G. & Ensor, J. 2006. Introduction to Marketing Concepts. New York: Cengage Learning. ESOMAR. 2008. Market Research Handbook. London: Sage. Guillén, M. F. & García-Canal, E. 2012. Execution as Strategy. Harvard Business Review 90(10). Inter IKEA Systems B.V. 2012. Affordable Solutions for better livings. [Online] Available at: http://www.ikea.com/ [Accessed on 26th February, 2014]. Inter IKEA Systems B.V Inter IKEA Systems B.V. 2012. IKEA UK announces Financial Year 2011 results. [Online] Available at: http://www.ikea.com/gb/en/about_ikea/newsitem/IKEA_FY11_results_02.11.11 [Accessed on 26th February, 2014]. IKEA Group sustainable strategy, 2020 http://www.ikea.com/ms/en_GB/pdf/people_planet_positive/People_planet_positive.pdf [Accessed on 26th February, 2014].. Inter IKEA Systems B.V Keegan. 2002. Global Marketing Management. London: Pearson Education. Kazmi, S, H, H. 2007. Marketing Management. Germany: Springer. Porter, M, E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. London: Simon and Schuster.
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