After reading the IKEA case‚ I find following problems‚ * Reluctance to change furniture: mind set of Americans Americans typically have the mind-set that furniture should last a lifetime‚ which is not in-line with IKEA’s value that does not include durability in its products. Thus to increase market share in America‚ IKEA must change the American’s attitude towards furniture as something fun and disposable‚ furniture is something that add value to lifestyle without incurring too much cost
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STRATEGIC ANALYSIS OF IKEA POLITICAL-Foreign investment restrictions-Companies as charity for tax avoidance-VAT increase to 20%-Globalization has eased import rules.-Government regulation climate change act 2008) | Ref13119 | ECONOMICAL-Economic crisis in North America.-Rising raw material and transport cost in 2009-Low spending power due to recession.-Recession in Russia-High import tax in japan | Ref2‚34677 | SOCIAL-Requirements on wood supplier-Brand image-Does not accept child labour-Women
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Journal of Business Research 58 (2005) 1251 – 1260 Information technology at IKEA: an ‘‘open sesame’’ solution or just another type of facility? Enrico Baraldia‚*‚ Alexandra Waluszewskib‚1 a Department of Business Studies‚ Uppsala University‚ Box 513‚ SE-751 20 Uppsala‚ Sweden Department of Business Studies‚ Uppsala University‚ Box 513‚ SE-751 20 Uppsala‚ Sweden b Received 15 March 2002; received in revised form 4 January 2003; accepted 15 May 2003 Abstract Information technology
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IKEA 1. A firm advantage of IKEA is they have a dedicated supplier network so they are able to offer quality furniture at low prices. IKEA reaps huge economies of scale from the size of its stores and the big production runs necessary to stock them since the same furniture is sold all over the world. Since IKEA saves‚ they are able to match their rivals on quality and still manage to undercut their furniture by 30 percent. A country advantage is they have more than 2‚300 suppliers in 67 countries
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world have been changed by globalisation. Normally‚ we just know that globalisation makes technologies around the world have changed such as software‚ smartphones‚ or computers. Because in nowadays everybody use very smart technologies in dairy life for example people can communicate with each other by use application on internet even they are not in the same country. Actually‚ globalisation makes almost everything around the world such as economy‚ politics‚ trade‚ fashion‚ etc. have been developed
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Background Information: IKEA IKEA is a Swedish company registered in the Netherlands that designs and sells ready-to-assemble furniture (such as beds‚ chairs‚ and desks)‚ appliances‚ and home accessories. As of January 2008‚ the company is the world’s largest furniture retailer. IKEAis the world’s most successful mass-market retailer‚ selling Scandinavian-style home furnishings and other house goods in 230 stores in 33 countries and hosting 410 million shoppers per year. IKEA offers a comprehensive
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development‚ corporate attributes that allowed IKEA to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion.[8] As of October 2011‚ IKEA owns and operates 332 stores in 38 countries. In fiscal year 2010‚ US$23.1 billion worth of goods were sold‚ a total that represented a 7.7 percent increase over 2009.[9] The IKEA website contains about 12‚000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors
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1) Looking at Ikeas challenges.. -low cost replacement for wood -global warming -deforestation - new sources of supply to support more store openings Option: Fabricating material Eco Friendly Substitute‚ still low cost… look a like 2) those countries match Ikeas target market -college students -budget -standard of living -income Challenge: -known for stylish‚ low-cost -other firms see Ikea as a threat and to compete and sustain they have developed new low cost furnishing
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1. How does Ikea generate customer loyalty? In marketing practice ‚ customer loyalty is defined as continuity of customers’ buying behavior . It refers to the dependence and recognition that customer received from products or services. The behavior that consumers adhere to have long-term purchase or use of the products or services to exhibited a high degree of trust and loyalty of the extent of the thoughts and emotions. It is a client of enterprise products in the long term evaluation competitive
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IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held‚ international home products Swedish corporation that designs and sells ready-to-assemble furniture‚ appliances and home accessories. The company is now the world’s largest furniture retailer.[2] IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden‚ named as an acronym comprising the initials of the founder’s name (Ingvar Kamprad)‚ the farm where he grew up (Elmtaryd)‚ and his home parish (Agunnaryd‚ in Småland‚ South Sweden)
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