Successful International Retail Strategy- IKEA
Mod. 5 Case Study
Successful International Retail Strategy
MKG 410
The majority of the world has embraced free trade. The global market is booming. With the reliability of wireless connections at home, in businesses and mobile devices, conducting business is easier and faster than ever before. There is no ceiling for the modern business other than the constraints brought upon by the business organization itself. The model of today’s world is if you are successful locally, you must take it globally; market penetration emerging markets as key. In order to penetrate emerging markets, businesses must go through the four phase planning process: preliminary analysis and screening, define market segments with proper marketing mix, develop marketing plan, and implementation and control (Cateora, 2013). Entering any market, especially an emerging market requires careful planning. In order for the company to make an educated decision, the company must conduct a preliminary market analysis to properly plan for the challenges that may lay ahead. The initial step is to evaluate potential markets. In order to be successful in a given market there needs to be sufficient marketing structures in place, distribution channels and most importantly income levels to support a newly introduced product into the market. By doing so the company can eliminate markets that would not produce proper gains and would be infeasible to pursue at the moment. This in turn narrows the scope and enables the company to focus on the proper markets and matches them with the appropriate products for the particular market segment. When 17 year old Swedish Ingvar Kampred began selling various small household goods, he had no idea what he stumbled upon. Having a knack for business, Ingvar began selling furniture through mail order fulfillment and founded the company IKEA. IKEA owns and operates 332 stores in 38 countries and in fiscal year 2010, accounted for US$23.1 billion worth of
Successful International Retail Strategy
MKG 410
The majority of the world has embraced free trade. The global market is booming. With the reliability of wireless connections at home, in businesses and mobile devices, conducting business is easier and faster than ever before. There is no ceiling for the modern business other than the constraints brought upon by the business organization itself. The model of today’s world is if you are successful locally, you must take it globally; market penetration emerging markets as key. In order to penetrate emerging markets, businesses must go through the four phase planning process: preliminary analysis and screening, define market segments with proper marketing mix, develop marketing plan, and implementation and control (Cateora, 2013). Entering any market, especially an emerging market requires careful planning. In order for the company to make an educated decision, the company must conduct a preliminary market analysis to properly plan for the challenges that may lay ahead. The initial step is to evaluate potential markets. In order to be successful in a given market there needs to be sufficient marketing structures in place, distribution channels and most importantly income levels to support a newly introduced product into the market. By doing so the company can eliminate markets that would not produce proper gains and would be infeasible to pursue at the moment. This in turn narrows the scope and enables the company to focus on the proper markets and matches them with the appropriate products for the particular market segment. When 17 year old Swedish Ingvar Kampred began selling various small household goods, he had no idea what he stumbled upon. Having a knack for business, Ingvar began selling furniture through mail order fulfillment and founded the company IKEA. IKEA owns and operates 332 stores in 38 countries and in fiscal year 2010, accounted for US$23.1 billion worth of
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