Cultural Strengths And Cultural Challenges Of IKEA

Decent Essays

Introduction IKEA has “learn[ed] from its failures and buil[t] on its successes, [providing] affordable, well-designed, functional furniture to the masses” (Hill & Jones, 2012, p. C96). Incessant learning, adapting, and modifying is necessary in the highly competitive retail market in which the company rests. In order to continue “helping [its customers] achieve a better everyday life” (Hill & Jones, 2012, p. C96), the company has to take a toll of its external opportunities and threats, as well as its internal strengths and weaknesses. Culture Cultural challenges will continue to prove ruinous when contemplating IKEA’s overall business plan, especially when resurrecting markets of global standards. As was seen after the acquisition of a portion of the American market, these cultural variances require the company to adjust and standardize their products with that of the norms of the area. In order to penetrate new global markets, the company has to take the time to research and determine which standards and regulations are unwaveringly apparent in the particular country or segment. From this, the company can then take the time to properly develop products (before any initial implementation takes place) that are suited to the needs and wants of the target market in the area. To master such a skill, IKEA must forfeit a greater amount of funds towards research and development, as well as take a toll of their presence in each global segment semi-annually. Innovation

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