IKEA in the Middle East May 2013 Table of contents Executive summary Introduction Purpose Scope Method Findings IKEA’s Marketing Strategy Reforms Discussion / Conclusion IKEA and the Future of the Middle East References Executive summary In 1995‚ IKEA opened their first store in the Middle East in what was called the retail hub Deira. This came at a time when the UAE was at the start of their development plans for Dubai. In terms of economics the UAE was on the way up in the building
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quickly. IKEA’s regular glasses were too small to be used by the US consumers. That is why they customized the size to fit the needs of the US markets. Some of the great things IKEA does to reach consumers are given below: (1) Products available for different sections of the society (2) Product adaptation according to the need of different market (3) Diversify product line product depth (4) Low priced furniture store provides reassemble furniture and casual furniture (5) Most of IKEA’s product
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obligations‚ or for the protection of public health‚ safety or security reasons. 2.222 Economic Economic growth: recession in Hong Kong affect IKEA’s sales. Interest rate: IKEA can benefit from the decrease of interest rate by borrowing money cheap now. Inflation: Increasing inflation will reduce consumer’s disposable income and thereby decrease IKEA’s profit. Unemployment: Hong Kong’s Unemployment rate has been rising during these months which decrease consumers’ spending power in IKEA‚ but provide
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industry in the market. (Srinivasan 2008) IKEA‚ the world biggest global furnishing mega store‚ provides products that are well- designed and functional‚ with prices that many consumers are able to afford them. It all begins from the internal analyze of IKEA’s resources‚ capabilities and both primary and support activities‚ also the external analyze of economy‚ social and technology aspects that made it all possible for their operations. One major resources of IKEA was to harvest woods from sustainable
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Coach Inc.: Is Its Advantage in Luxury Handbags Sustainable? 1. What are the defining characteristics of the luxury goods industry? What is the industry like? 2. What is competition like in the luxury goods industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not? 3. How
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goal of the company for today’s business? Discuss how IKEA’s vision and mission lead the company to the success and Discuss why it is important to a company to learn what consumer needs. 1. What kind of business is IKEA? IKEA is a wide range of home furniture and decorate items of good design and function‚ at prices so low the majority of people could afford to buy them. 2. What is the goal of the company for today’s business? IKEA’s vision of the business is ‘Creating a better quality
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new line of kitchen appliances. Their global difersification was made posiible by Ikea’s strategy of trusting the intuition of its (local) staff (decentralization with the ability to even adapt product to local requirements)‚ combined with their extensive internal training programs. They even gave up on central‚ internal budgeting. The locals only had to meet a fixed ratio of costs to turnover. A key factor for Ikea’s international success is also the founding of Inter IKEA Systems BV. They introduced
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IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (A) 1) How should Marinanne Barner respond to the invitation for IKEA to have a representative appear in the upcoming broadcast of the German Video program? Two months after being hired as a business manager of carpets and rugs‚ Barner already had to face that kind of problem. Indeed‚ in 1994‚ a Swedish television broadcasted a documentary showing children working at weaving looms in Pakistan. IKEA was the only famous
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BUSINESS COMMUNICATION Q-1) What do you recommened?should the company implement one of the new technologies?why or why not? Ans Since this is a hypothetical question‚ it becomes logical and fair to argue that more detail is needed in order to make a responsible decision. I cannot see a reasonable answer offered with the lack of detail present. For example‚ what is the financial state of the company? What does the company do in order to understand the need for technology? What is the
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IKEA CASE 1) What are IKEA’s competitive priorities? A low price tag on its products is IKEA’s most prominent competitive priority. Apart from that‚ other priorities include function‚ modern design‚ environmental considerations‚ and making sure products have been manufactured under acceptable working conditions. 2) Describe IKEA’s process of developing a new product As conventional practices follow‚ IKEA too starts with a sketch about the new product’s conceptual design. But‚ it differs
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