Case Study Of IKEA

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The following is the case study of importance factor to increase growth of IKEA. IKEA, a global furniture retailer, is established on the concept of offering wide range of functional, well designed and low cost home furnishing products. The IKEA concept journey continues with global operations in 40 countries, with 330 stores. This case study takes a strategic analysis IKEA to increased growth in international border.

As shown, one of IKEA strategy to increase their growth is through work with suppliers in each of the company’s big market to avoid the shipping cost all over the world. By having supplier located internationally, long distance transportation can be minimized competition between suppliers and ensure quality product is produced at an affordable cost. In other word, the lowering of these trade barriers also has facilitated the globalization of production. Considering the case of IKEA to reliance in local manufacture rather than importing product into local market, tariff and trade barrier may be seem little influence on its business profit.

In addition, innovation and new products development have become the key strategic focus for today’s most successful companies (Doyle,
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IKEA did not invest a lot of money on advertisement but they do promotional by drive traffics into the stores by configure the interior store so that customers have to pass through each department to get the checkout. Apart from this, IKEA also add restaurant where suitable with Malaysian culture which love to eat and at the same time help inspiring customer with the concept of IKEA where they used their owns product. Furthermore, IKEA also provide child facilities to shopper stay as long as possible. This promotion strategy can influence IKEA in order to growth international that help meet the customer

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