Ikea’s Globalization Strategies and Its Foray Into China
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|IKEA’s Globalization Strategies and its Foray into China |
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Question 1
Ingvar Kamprad is a very successful Swedish entrepreneur who founded IKEA. There are some reasons why Kamprad has made IKEA to a global player.
Already in his youth he is very ambitious and he wants to make money. He early learns a defining lesson about purchasing a lot of goods to low unit costs and then he sells them to a higher price to make profits. This concept leads Komprad to open up his own small business - IKEA is born. Afterwards, he rapidly develops his start-up and he invents the flat pack concept. Accordingly, IKEA implements the principle of do-it-yourself. Summarised it is possible for IKEA to sell wide variety, good design, good value and good quality to an affordable price. These values are lived by Kamprad also today. He buys at discount stores or he travels in second-class. Thus, he cherishes his attitude: good quality does not have a high price.
As a result, it is visibly that Kamprad has an enormous influence on the company. His own values are elements of IKEA’s image and he transports this message to the customers. He pursues openness, qualitiy, cost consciousness, competitiveness and this leads to the huge success of IKEA.
A lot of people are sure that IKEA’s competitive advantage is based on three major components. At first it is the concept. Ikea wants to improve the everyday life of their customer. Secondly, the values of IKEA as already above mentioned. The third component is the symbols. The symbols reflect the values of the customer and so a strong “we”-feeling is generated. In addition, this leads to IKEA’s strategy to foray into new markets. The concept of IKEA is easy to transfer
|IKEA’s Globalization Strategies and its Foray into China |
| |
|
Question 1
Ingvar Kamprad is a very successful Swedish entrepreneur who founded IKEA. There are some reasons why Kamprad has made IKEA to a global player.
Already in his youth he is very ambitious and he wants to make money. He early learns a defining lesson about purchasing a lot of goods to low unit costs and then he sells them to a higher price to make profits. This concept leads Komprad to open up his own small business - IKEA is born. Afterwards, he rapidly develops his start-up and he invents the flat pack concept. Accordingly, IKEA implements the principle of do-it-yourself. Summarised it is possible for IKEA to sell wide variety, good design, good value and good quality to an affordable price. These values are lived by Kamprad also today. He buys at discount stores or he travels in second-class. Thus, he cherishes his attitude: good quality does not have a high price.
As a result, it is visibly that Kamprad has an enormous influence on the company. His own values are elements of IKEA’s image and he transports this message to the customers. He pursues openness, qualitiy, cost consciousness, competitiveness and this leads to the huge success of IKEA.
A lot of people are sure that IKEA’s competitive advantage is based on three major components. At first it is the concept. Ikea wants to improve the everyday life of their customer. Secondly, the values of IKEA as already above mentioned. The third component is the symbols. The symbols reflect the values of the customer and so a strong “we”-feeling is generated. In addition, this leads to IKEA’s strategy to foray into new markets. The concept of IKEA is easy to transfer