IKEA is a private international home products company headquartered in Sweden. It designs and sells ready-to-assemble furniture, appliances, and home accessories. IKEA has 301 stores across 37 countries and territories worldwide. Some of its competitors include Jarden, Fortune Brands, Masco, and Rubbermaid. IKEA aims to provide affordable products to as many people as possible and positions itself as customers' partner in better living.
Ikea is reviewing its entire $444 million global media account, which is currently split between a range of agencies across five different holding companies.
Ikea is No. 66 in the ranking of Top 100 Global Marketers compiled by Ad Age's Datacenter. In 2014, the vast majority of Ikea's spending – 79% – was in Europe, with 15% in the U.S. and less than 2% in Asia.
Ikea is reviewing its entire $444 million global media account, which is currently split between a range of agencies across five different holding companies.
Ikea is No. 66 in the ranking of Top 100 Global Marketers compiled by Ad Age's Datacenter. In 2014, the vast majority of Ikea's spending – 79% – was in Europe, with 15% in the U.S. and less than 2% in Asia.
IKEA is a Swedish multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. It has been the world's largest furniture retailer since at least 2008.
1 Assessment 2 Case Study Assignment Spec.docxhoney725342
1
Assessment 2
Case Study
Assignment Specifics:
Read the case study and answer all four questions
This is an individual piece of work
Weighting: 40% towards final grade
Please use the Harvard Referencing System for referencing requirements
Total wordage: 4000 words
IKEA: A Long March to the Far East
From its humble beginning as a small general retail store in a village situated
in the south of Sweden, IKEA has grown into the world’s largest furniture
retailer with 279 stores in 36 countries today. The name IKEA is formed from
the founder's initials I. K. (Ingvar Kamprad) plus the first letters of Elmtaryd (E)
and Agunnaryd (A), the farm and village where he grew up. Specializing in
furniture and home decoration, IKEA has an annual turnover of 19.8 billion
euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA
catalogue is printed in 52 editions with 25 languages, with a global distribution
in excess of 160 million copies.
IKEA’s success has been nothing short of a global phenomenon. Edvardsson
and Edquist (2002) have accounted for the company’s rise to global success
following the timeline of three development phases. In phase one, IKEA’s
core concepts were formed as a result of adapting to the market
circumstances. The important moments during this period were publishing the
first IKEA catalogue in 1951, opening the first furniture showroom in Älmhult in
1953, introducing flat packages in 1956 and finding the key to low cost
production in Poland in the early 1960s. Phase two is characterized by the
company’s initial internationalization expansion when it reached out to its
Scandinavian neighbours in the 1960s. Since the 1970s, the company began
to expand farther into other European countries, Australia and Canada. In
1985, IKEA arrived at the world’s largest consumer market—the United States
where first experienced North America as a market very different from those
in Europe. Armed with its international experience in Europe and North
America, IKEA took the company into the third phase of its development by
embarking on a major expansion into the Far East, in particular Japan and
China.
http://www.ikea.com/
http://www.ikea.com/
2
IKEA sees the Far Asia as an emerging market still in its infant stage. Its
number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai
and Hong Kong are very small and comprises a mere 3% of the company’s
total sales. These stores were expected to be more successful in the near
future. IKEA’s imminent strategic expansion into this region exemplified its
ambitions to dominate this emerging market.
IKEA’s entry into Mainland China started in 1998 when it opened its first store
in Shanghai, followed by Beijing in 1999. IKEA took its time to get to know the
Chinese customers. This prudent approach to market entry took IKEA the
following 5 years before it opened its first full-scale standard IKE ...
1 Assessment 2 Case Study Assignment Spec.docxmercysuttle
1
Assessment 2
Case Study
Assignment Specifics:
Read the case study and answer all four questions
This is an individual piece of work
Weighting: 40% towards final grade
Please use the Harvard Referencing System for referencing requirements
Total wordage: 4000 words
IKEA: A Long March to the Far East
From its humble beginning as a small general retail store in a village situated
in the south of Sweden, IKEA has grown into the world’s largest furniture
retailer with 279 stores in 36 countries today. The name IKEA is formed from
the founder's initials I. K. (Ingvar Kamprad) plus the first letters of Elmtaryd (E)
and Agunnaryd (A), the farm and village where he grew up. Specializing in
furniture and home decoration, IKEA has an annual turnover of 19.8 billion
euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA
catalogue is printed in 52 editions with 25 languages, with a global distribution
in excess of 160 million copies.
IKEA’s success has been nothing short of a global phenomenon. Edvardsson
and Edquist (2002) have accounted for the company’s rise to global success
following the timeline of three development phases. In phase one, IKEA’s
core concepts were formed as a result of adapting to the market
circumstances. The important moments during this period were publishing the
first IKEA catalogue in 1951, opening the first furniture showroom in Älmhult in
1953, introducing flat packages in 1956 and finding the key to low cost
production in Poland in the early 1960s. Phase two is characterized by the
company’s initial internationalization expansion when it reached out to its
Scandinavian neighbours in the 1960s. Since the 1970s, the company began
to expand farther into other European countries, Australia and Canada. In
1985, IKEA arrived at the world’s largest consumer market—the United States
where first experienced North America as a market very different from those
in Europe. Armed with its international experience in Europe and North
America, IKEA took the company into the third phase of its development by
embarking on a major expansion into the Far East, in particular Japan and
China.
http://www.ikea.com/
http://www.ikea.com/
2
IKEA sees the Far Asia as an emerging market still in its infant stage. Its
number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai
and Hong Kong are very small and comprises a mere 3% of the company’s
total sales. These stores were expected to be more successful in the near
future. IKEA’s imminent strategic expansion into this region exemplified its
ambitions to dominate this emerging market.
IKEA’s entry into Mainland China started in 1998 when it opened its first store
in Shanghai, followed by Beijing in 1999. IKEA took its time to get to know the
Chinese customers. This prudent approach to market entry took IKEA the
following 5 years before it opened its first full-scale standard IKE ...
IKEA is a Swedish multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. It has been the world's largest furniture retailer since at least 2008.
1 Assessment 2 Case Study Assignment Spec.docxhoney725342
1
Assessment 2
Case Study
Assignment Specifics:
Read the case study and answer all four questions
This is an individual piece of work
Weighting: 40% towards final grade
Please use the Harvard Referencing System for referencing requirements
Total wordage: 4000 words
IKEA: A Long March to the Far East
From its humble beginning as a small general retail store in a village situated
in the south of Sweden, IKEA has grown into the world’s largest furniture
retailer with 279 stores in 36 countries today. The name IKEA is formed from
the founder's initials I. K. (Ingvar Kamprad) plus the first letters of Elmtaryd (E)
and Agunnaryd (A), the farm and village where he grew up. Specializing in
furniture and home decoration, IKEA has an annual turnover of 19.8 billion
euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA
catalogue is printed in 52 editions with 25 languages, with a global distribution
in excess of 160 million copies.
IKEA’s success has been nothing short of a global phenomenon. Edvardsson
and Edquist (2002) have accounted for the company’s rise to global success
following the timeline of three development phases. In phase one, IKEA’s
core concepts were formed as a result of adapting to the market
circumstances. The important moments during this period were publishing the
first IKEA catalogue in 1951, opening the first furniture showroom in Älmhult in
1953, introducing flat packages in 1956 and finding the key to low cost
production in Poland in the early 1960s. Phase two is characterized by the
company’s initial internationalization expansion when it reached out to its
Scandinavian neighbours in the 1960s. Since the 1970s, the company began
to expand farther into other European countries, Australia and Canada. In
1985, IKEA arrived at the world’s largest consumer market—the United States
where first experienced North America as a market very different from those
in Europe. Armed with its international experience in Europe and North
America, IKEA took the company into the third phase of its development by
embarking on a major expansion into the Far East, in particular Japan and
China.
http://www.ikea.com/
http://www.ikea.com/
2
IKEA sees the Far Asia as an emerging market still in its infant stage. Its
number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai
and Hong Kong are very small and comprises a mere 3% of the company’s
total sales. These stores were expected to be more successful in the near
future. IKEA’s imminent strategic expansion into this region exemplified its
ambitions to dominate this emerging market.
IKEA’s entry into Mainland China started in 1998 when it opened its first store
in Shanghai, followed by Beijing in 1999. IKEA took its time to get to know the
Chinese customers. This prudent approach to market entry took IKEA the
following 5 years before it opened its first full-scale standard IKE ...
1 Assessment 2 Case Study Assignment Spec.docxmercysuttle
1
Assessment 2
Case Study
Assignment Specifics:
Read the case study and answer all four questions
This is an individual piece of work
Weighting: 40% towards final grade
Please use the Harvard Referencing System for referencing requirements
Total wordage: 4000 words
IKEA: A Long March to the Far East
From its humble beginning as a small general retail store in a village situated
in the south of Sweden, IKEA has grown into the world’s largest furniture
retailer with 279 stores in 36 countries today. The name IKEA is formed from
the founder's initials I. K. (Ingvar Kamprad) plus the first letters of Elmtaryd (E)
and Agunnaryd (A), the farm and village where he grew up. Specializing in
furniture and home decoration, IKEA has an annual turnover of 19.8 billion
euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA
catalogue is printed in 52 editions with 25 languages, with a global distribution
in excess of 160 million copies.
IKEA’s success has been nothing short of a global phenomenon. Edvardsson
and Edquist (2002) have accounted for the company’s rise to global success
following the timeline of three development phases. In phase one, IKEA’s
core concepts were formed as a result of adapting to the market
circumstances. The important moments during this period were publishing the
first IKEA catalogue in 1951, opening the first furniture showroom in Älmhult in
1953, introducing flat packages in 1956 and finding the key to low cost
production in Poland in the early 1960s. Phase two is characterized by the
company’s initial internationalization expansion when it reached out to its
Scandinavian neighbours in the 1960s. Since the 1970s, the company began
to expand farther into other European countries, Australia and Canada. In
1985, IKEA arrived at the world’s largest consumer market—the United States
where first experienced North America as a market very different from those
in Europe. Armed with its international experience in Europe and North
America, IKEA took the company into the third phase of its development by
embarking on a major expansion into the Far East, in particular Japan and
China.
http://www.ikea.com/
http://www.ikea.com/
2
IKEA sees the Far Asia as an emerging market still in its infant stage. Its
number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai
and Hong Kong are very small and comprises a mere 3% of the company’s
total sales. These stores were expected to be more successful in the near
future. IKEA’s imminent strategic expansion into this region exemplified its
ambitions to dominate this emerging market.
IKEA’s entry into Mainland China started in 1998 when it opened its first store
in Shanghai, followed by Beijing in 1999. IKEA took its time to get to know the
Chinese customers. This prudent approach to market entry took IKEA the
following 5 years before it opened its first full-scale standard IKE ...
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
Report Contains Marketing Mix of IKEA. In this report there is comparison of 4Ps of IKEA in Four Countries i.e Sweden, UK, China and India.
This report is result of the efforts of four people.
CASE 6 Business Model and Competitive Strategy of IKEA in India.docxwendolynhalbert
CASE 6: Business Model and Competitive Strategy of IKEA in India
Syed Abdul Samad
IBS Center for Management Research (ICMR)
· “We are very determined but very patient at the same time. We started this journey six years ago. Things are finally moving and we are satisfied with the progress so far…
“I truly believe that the IKEA format is going to work. What is an IKEA store? An IKEA store has more than 9000 different articles for the entire family. We offer an experience for the whole family. Also remember, at IKEA we don’t sell products, we sell inspiration.”1
– Juvencio Maeztu, IKEA’s Country Manager for India, in 2013
After a year of lobbying and negotiating with and convincing the Indian politicos and bureaucrats, IKEA’s €1.5 billion investment proposal to set up its stores in India was finally accepted by the local government on May 2, 2013. However, as of July 2013, Juvencio Maeztu (Maeztu), IKEA’s Country Manager for India, found he still had a colossal task ahead of him.
IKEA, the Netherlands-based Swedish company, was the largest furniture retailer in the world with a presence in 44 countries around the globe—in countries like the US, the UK, Russia, the EU region, Japan, China, Australia, etc. However, it did not enter into the Indian market till 2013, though the company had had a presence in the country since the 1980s as a sourcing destination for its global stores. It had even opened its regional procurement office in Gurgaon, India, in 2007. In 2009, IKEA tried to enter the country to establish its stores, but its attempts were thwarted by India’s stringent Foreign Direct Investment (FDI) regulations. It again applied for permission for entry in June 2012, after India had made some changes in its FDI rules. However, IKEA had to wait another year, hitting many roadblocks on the way, before it was able to obtain the Indian government’s approval to establish its stores. The company also had to tweak its global store model to fit the Indian FDI and sourcing outlines and Indian consumer preferences.
While Maeztu was tasked with tapping the Rs.* 925 billion Indian furniture and furnishings market, analysts were keenly waiting to see what strategies the furniture giant would come up with to win the highly-fragmented, price-sensitive Indian market—as many Indian middle-class families preferred to have their furniture custom-made from small retailers or local carpenters. No two Indian homes had the same kind of furniture as Indians in general showed more of an affinity for unique woodwork and designs rather than flat geometric furniture. “Living room in India is different from any other country—a place for socializing and every activity is around the food. In some countries it is the kitchen and in some countries living room is used for sleeping,”2 said Maeztu. More important was the fact the Indian customer did not prefer the concept of do-it-yourself (where buyers had to assemble different pieces of the product themselves), a key part o ...
1. IKEA INTERNATIONAL SUBMITTED BY RACHIT GULATI MBA 1ST YR M100700043
2. IKEA is a private held international home product company. Incorporated in 1943. Head office at ALMHULT,SMALAND,SWEDEN INTRODUCTION
3. IKEA is an international home product company that designs and sells ready to assemble furniture apppliances and home accessories. In what business we are in?
4. "To create a better everyday life for the many people.” IKEA VISION
14. Is an American co. Headquarters in New York,USA It is in Fortune 500 list. PRODUCTS- Art and craft Home storage products Kitchen tools Kitchen Accessories Cabinets JARDEN
15. It is an American Brand founded in 1963 Home and Hardware is one of the division of FORTUNE BRANDS. It’s in Fortune 500 Companies. PRODUCTS Omega Cabinetry Kitchen accessories Master Locks Doors FORTUNE BRANDS (Home and Hardware)
16. MASCO Screw Product co. An American company Head office in Michigan USA PRODUCTS Kitchen Accessories Cabinets Pictures and Frames MASCO
17. An American manufacturers subsidiary of Newell Rubbermaid. Head office in NorthCalifornia, USA. It is one of the fortune 500 companies. PRODUCTS Sheds,Stepstools Shelvings Kitchens Accessories Pictures Frames RUBBERMAID
18. It is leading UK based company. Incorporated in 1964 in London. Headquarters in london UK Products Kitchen cabinets Doors Floorings Galiform
19. IKEA vision "To create a better everyday life for the many people.” IKEA aims to provide product also to those who can’t spend huge money. Our market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money." IKEA PRODUCT POSITIONING
20. By Developing stylish Retail Outlets in different areas CO. spending huge amount on advertisment of their products. IKEA PRODUCT POSITIONING
21. Wide range of products according to the need of consumers. Products available for different sections of the society. Products adaptation according to the need of different market. Diversify product line and product depth. PRODUCT STRATEGY
22. Low priced furniture store provides reassemble furniture and casual furniture. Most of IKEA’s product are stylish that makes the company unique. Concept of Flat packaging which makes it easier to consumers to transport the furniture. PRODUCT STRATEGY
23. IKEA designs its own furniture. IKEA offers a variety of style for interested consumers to choose from. PRODUCT STRATEGY
24. High Profile advertisment campaigns. (spending 70% of annual marketing budget in printing catalogs.) Upon entry to IKEA store shoppers are guided properly. Online shopping IKEA providing home delivery serice to its customers. PROMOTION STRATEGY
25. After sale service to the customers. Online advertisments. PROMOTION STRATEGY
26. IKEA’S low priced create appeal amongst its customers in touch.(Its vital to keep price as low as possible when retail sector is in depression) IKEA pricing strategy targets consumers with limited financial resources The co. must ensurethat it is always recognised as having the lowest prices on the market in the future. PRICING STRATEGY
27. IN EUROPE IKEA is planning to open 10 new stores in europe. Russia is a potential market for IKEA because the economy of Russia is expanding. Germany is a largest market of IKEA. Future growth of IKEA in selected countries
28. IN NORTH AMERICAS America market can be tough for IKEA as there Are big competitors like FORTUNEBRANDS,JARDEN,MASCO exists. IKEA planning to open 5 new store in USA. Future growth of IKEA in selected countries
29. IN ASIA Asia is a large potential market for IKEA IKEA is planning to enter in INDIA In 2011 IKEA is going to open its store in MALAYSIA CHINA,JAPAN and SINGAPORE is profitable market to expand. Future growth of IKEA in selected countries
30. IN AUSTRALIA AUSTRALIA is a big market for IKEA.There is always demand for ready to assemble furniture. IKEA increasing employees in there stores IKEA is currently operating in all the states of AUSTRALIA and planning to increase its stores. Future growth of IKEA in selected countries
31. Currently IKEA is not operating in LATIN AMERICA.(MEXICO,BRAZIL,CHILE,ECUDOR) AFRICA can be a profitable market for IKEA (SOUTH AFRICA) In ASIA, INDIA is a big potential market. IKEA is planning to open new store is china. POTENTIAL MARKET FOR IKEA
32. IKEA is a well know global brand with hundreds of stores across the world. IKEA Passion combines designs,low prices economical use of resources & responsibilty for people. IKEA is intent on becoming a leading example in developing a sustainable business. CONCLUSION