An examination of ikeas global presence and management of the brand

The company was founded in and is known for its simple yet effective approach to retailing with the DIY or the Do It Yourself concept, which ensures that the company keeps costs to a minimum and passes on the value to the customers. The products sold by IKEA are mostly ready to use and flat packed meaning that they can be assembled by the customers themselves.

An examination of ikeas global presence and management of the brand

Further expansion into developing economies Growing online sales Expansion to growing grocery market Threats Growth of average consumer income Strengths Customer knowledge. One of the key competitive advantages IKEA has is its extensive knowledge about the customers. The company understands the purchasing factors that influence customers to buy and implements the best practices to induce that decision.

IKEA offers low prices and a huge range of products. Designers constantly introduce new design products that look stylish in the eyes of customers.

All the products are designed so it would be easy to transport and assemble. Moreover, the company offers the widest product range and positive shopping experience. All of these factors are aligned with what customers want and need and which results in higher sales.

Without such extensive customer knowledge and best practices to benefit from that knowledge, IKEA would be unable to outcompete its current competitors.


Constantly using innovations to drive costs down. Low prices are the cornerstone of IKEA business idea and the the company always try to do things as efficient and cost-effective as possible.

To drive costs down all the time, the company must find new and innovative ways to do that and to incorporate them in its businesses model. IKEA is committed to long lasting relationships with its suppliers. In this way, the company can order large volumes and benefit from lower prices and greater quality while suppliers are assured of guaranteed orders.

IKEA sources its materials close to suppliers to reduce transporting costs. The company also uses IWAY approach to closely integrate suppliers with its supply chain. All the efforts of closely integrating supply chain results in lower costs and a competitive advantage.

Brand reputation and market presence. The business operates stores in 38 countries and is present in the major world markets. More than million customers visit IKEA stores every year. Worldwide market presence and strong brand reputation ensures that customers will often choose IKEA over its competitors.

In addition to its furniture products, the company operates restaurants, houses and flats. The company has been criticized many times for issues like poor treatment of employees, questionable advertising practices or lobbying government authorities.

Negative publicity decreases brand reputation and customer loyalty. Low quality of products and services. IKEA is unable to find compromise between continuous cost reductions while maintaining the same quality of products. Standardized products attract fewer customer segments. Therefore, the business inability to offer better quality more customized products allows its competitors to fill that niche and fortify their position in it.

Opportunities Further expansion into developing economies.

An examination of ikeas global presence and management of the brand

There are great opportunities for IKEA to expand into Brazil, Mexico, Indonesia and Malaysia to increase its presence in these markets to sustain future growth. Online sales grow constantly and with million visitors to its website IKEA could exploit this opportunity and benefit from increased sales and lower costs.

An examination of ikeas global presence and management of the brand

Expansion to growing grocery market. The current trend of eating healthier food has resulted in higher demand for grocery products in many developed economies.

IKEA has an opportunity to expand its grocery business by introducing more grocery stores in its current retail places. The company is already successfully managing its food outlets, so this expansion opportunity would be well aligned with the current operations.

These large retailers have similar specifics as IKEA, including low costs, well managed supply chain and huge market presence and can easily gain some market share from IKEA.

IKEA SWOT analysis ; Strengths Weaknesses; Brand reputation and market presence. He's been using his knowledge on strategic management and swot analysis to analyze the businesses for the last 5 years. His work is published in many publications, including three books. The research was undertaken in order to aid global leadership practitioners in their efforts to present a more cooperative and powerful organizational atmosphere. How IkeaS Strategy Was Formed Case study is just one of the subject. Moreover, the widespread distribution of the worldwide web as a global communications device provides consum ers with nearly instant information about an organization, its products, and services.

Growth of average consumer income. Growth of average consumer income means that people buy less low price and low quality products, which is exactly what IKEA offers in its stores. With the rising income people will be less attracted to IKEA and will turn to retailers that offer higher quality homeware products.An interaction approach to global sourcing: A case study of IKEA The third and final stream of research pays particular attention to the organizational design and management of global sourcing, especially global sourcing strategy development (e.g., Through their experience and presence in China, IKEA had sourcing market knowledge we.

IKEA is often cited as an example of a ‘global’ retailer which pursues a similar ‘standardized’ approach in every market.

This paper systematically assesses the degree of standardisation. According to the company, the ‘IKEA’ brand is well known—in Shanghai, 96% of the catchment area of the store are aware of the brand, and the first Fortune Cookies opinion poll in China showed that 75% of those with a monthly income of more than RMB , living in urban areas, and aged 15–55, knew of IKEA (Dagens Industri, 05/05/).

The Little-Known Secrets to How IkeaS Strategy Was Formed Case Study Solution

Global Presence and Management of the Brand (IKEA) The original store owned by IKEA was opened in in Sweden. The company has since expanded and opened stores outside Sweden in the subsequent years of its operations including Norway in and .

MANStrategic Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book.

IKEA Case Study 2 MANStrategic Management Table Of Contents Introduction 4 History 4 I/O model 6 The External Environment 6 The Industry Environment 7 The competitive environment 8 Value Chain 8 International Strategy 10 Strategic Choice 11 International Business Level Strategy 11 Multidomestic Strategy 11 Global Strategy 11 .

IKEA Case Study | Sharleen Suwaris -