IKEA Marketing Analysis Final Version Essay

IKEA pursues sustainability in a big way which is why competitors could learn from their company. IKEA has a wide variety of products under its label. Today, 71% of all IKEA products are recyclable, made from recycled materials, and or both (A.Jefferies, 2009). In addition to this, Ikea recycles 84% of waste generated in its stores. IKEAs sustainability focuses on four components: products and materials, suppliers, climate change, and community involvement. IKEA bases

Globalization has brought the world closer in communication, economics, politics, and especially business. The Internet and technological improvements have allowed instantaneous communication almost anywhere, and even poor women in India are using Smartphones to manage their banking portfolios. The idea of globalism continues to break down cultural barriers. As this continues it will be essential for organizations to not only understand, but embrace cultural differences and styles. Clearly, the changing demands of global stakeholders require new ways of approaching divergent customer bases. There are differences in style, skill, education and attitude in every organization now accentuated when we think of the multi-national organization. Correctly managed, this diversity can be a huge bonus to the organization (Trebing and Estabrooks, 2005). As we think of expanding Ikea into some of the major urban areas of China, there are a few issues that might be helpful in organizing training and strategic planning.

In august 2008, IKEA had total 253 stores where 560 million people visited. Here the total sales became 23 billion Euros. Considering 20% sales profit here IKEA’s average customer per store and cost per store are given below:

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.

IKEA is a multinational group of companies, specialized in designs and sells home furniture (ready to assemble). They also sell accessories, bathroom & kitchen items and lately they have offered food market in their retail stores around the world. It was founded by Ingvar Kamprad who born in southern Sweden in 1926 and who was listed as one of the world 's richest people in 2013. The company is known by its modern (simplicity) design, cost control, operation details and continues product development. Today, IKEA owns and operates 225 stores in more than 30 countries. IKEA have a very nice catalogue, published in twenty languages. It is their main market tool for the retail giant.

IKEA is the largest furniture chain in the world, and in 2011 the Swedish company operated over 270 stores in 25 countries. In 2011 IKEA sales soared to over $35 billion, or over 20% of the global furniture market. Most of its stuffs believed IKEA will massive growth throughout the world in the coming decade because IKEA could provide what customer wanted: good design, and good made contemporary furniture with an affordable price. In one word, IKEA’s global approach focuses on simplicity, attention to detail, cost consciousness, and responsiveness in every aspect of its operations and behavior. (Jones, 2013)

And by offering the right products at the right prices we will help our customers live a more sustainable life at home. IKEA has an important role to play in terms of taking responsibility for people and the environment. This is why sustainability is one of four cornerstones in the new Group strategy “Growing IKEA – together”. We have a strong foundation to build on – it is in our culture to twist and turn established truths to find a new angle, a new idea, and to have the courage to try to do things differently. IKEA is obsessed with making more from less, and we hate to waste resources of any kind. This will continue to be our compass in years to come, and we will stimulate new thinking and innovation in our sustainability work. Innovation is needed to build sustainable solutions into the IKEA range and to tackle some of the global challenges society faces. We need to identify and use more resource efficient materials and develop better solutions for reusing and recycling IKEA products once our customers no longer want them. I believe IKEA together with our customers, co-workers, suppliers and the rest of society can make a big difference. The 50 million low-energy bulbs purchased at IKEA in the past three years represent energy savings equivalent to the output of four and a half nuclear plants, and substantial reductions of carbon dioxide emissions. This gives just a hint of the potential that lies in the word “together”!

Bulgaria’s furniture industry is a dynamically developing sector in the past few years. It is well known that most furniture companies in the country are based on strong traditions and good correlation between price and quality, but (as in many other countries), although the major part of the customers on the inner market prefer Bulgarian-made furniture, high prices are seen as a sign of high quality, so most furniture pieces produced by the companies are considered high priced and hardly affordable for the majority of people.

By having a good strategic management criteria Ikea has ensured that they have high quality products and materials at a low cost. In addition, Ikea develops its product plan to increase its use of waste or recycled materials, thus, making them a company that cares about social issues. The company also offers publications to the general public highlighting Ikea partners who are people companies that are environmentally friendly. The increasing popularity of Ikeas environmentally friendly products are due to the companies concern for the people and the environment, this encourages them to develop more products using raw materials.

1. Design- IKEA designers work in exactly the opposite way from their competitors. They design their products in such a way so that they can keep the prices low. IKEA designers design every product starting with a functional need and then decide on price. With the help of their vast knowledge in innovation and low-cost manufacturing processes through a large network of suppliers, they design the final product which can fulfill consumer’s functional needs. Large volumes are purchased to push prices down even further by distributing the R&D cost. Most IKEA products are designed in such a way so that they can transport in flat packs and assembled at the customer's

By operating the business in Thailand (foreign market), IKEA adopt the strategy called “Think Global, Act Local” in the sense that IKEA maintains, applies and upholds their core values and cultures in their practices, while learning to adapt and understand the Thai culture and the Thai market in terms of needs, desires and wants of Thai people in general in order to survive and succeed.

IKEA, founded in 1943 by Ingvar Kamprad, has a vision “to create a better everyday life for the many people”. With its business idea of “offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”, IKEA’s operational processes continues to focus on creating quality products and services at low costs as well as environment sustainability. (IKEA, 2016) More than being a furniture merchant, IKEA sells a brand that is easily recognizable, chic, stylish, minimalist and modern. It believes that everyone will leave IKEA store with something they like, be it the products or services. Its success is evident internationally where there are more than 300 stores in 35 countries. (Freden, 2015) The case study will

IKEA is an international home products retailer that sells home products and accessories in their retail stores around the world. This company, which pioneered flat-pack design furniture at affordable prices, is now the world's largest furniture retailer. It was founded in 1943 by Ingvar Kamprad in Sweden, since then, the IKEA group has grown into a global brand with 127,000 workers in 41 countries. IKEA holds a mission to create a better everyday life at home for the many people and remains respectful towards the environment, resource and people by supporting various social causes. The following analysis would be based on the Singapore context.

A different approach about Ikea’s success is given by Sara Kristofferson in her book Designed by Ikea, London 2014. In the first chapter, Kristofferson refers to the relationship between the swedish goverment and Ikea.

The services and products offered by IKEA provide value to its customers in various ways. For one, the products and services are very affordable. The products and services are not priced highly and therefore, the average customer can enjoy them. At the same time, the products are of high quality. From IKEA’s slogan “low prices but not at any price”, it is clear that the company prices its products lowly but that does not mean that the quality is compromised. IKEA satisfying its customer’s needs through providing them value for their money as they provide quality products that will last for a long time, and at affordable costs. The fact that the company has set the minimum acceptable standards for its wood, implies that it is also keen on quality and on the environmental impact of its action of making furniture ( Edvardsson, Enquist & Hay, 2006).