Ikea Tows Analysis

IKEA is an internationally known home-furnishing retailer, with over 300 stores in 40 countries, that specializes in products

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

Considering the previous mission statement with a unique customer vision IKEA is clearly antagonistic with specific customers’ needs. That lack of adjustment to customer needs is the main reason for not getting the same results in China than in Northern Europe.

IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international

Given the issue of deforestation and the link to global warming, IKEA would need to take into consideration finding a low-cost material as a replacement for wood.

Also known for product innovation, use of renewable materials (75%) and “smart” use of raw materials (90% recycled/reclaimed waste products in energy production) IKEA has promoted its growth and popularity primarily related to branded image. (http://businesscasestudies.co.uk)

Next for the company is the launch of a line of environmentally friendly office furniture, carrying on the consistent tone of the company's environmental practices. There's also

IKEA provides vast variety of home products from furniture, bed, tables, chairs, to home decoration, and kitchen accessories. At the heart of the IKEA strategy was its product range which founder of the company Ingvar Kampard called “Our Identity”(Bartlett, Nanda 1996). IKEA is recognized world-wide for its innovative approach toward business and stylish designs. The company has used innovation for cost leadership. “Almost all IKEA products are designed for flat packaging, which reduces shipping costs, minimizes transport damage,

We believe what is good for society is good for IKEA. We are passionate about creating a successful business where we act in a responsible way through small and large actions. It is a way of being. This is why sustainability is a cornerstone in the IKEA strategic direction – it is highly prioritized and serves as a driver of further innovation and development. Economizing with resource, finding new ways of doing things and developing our knowledge and expertise are important parts of our business idea and heritage. A low price company must be a low cost company, and this includes being careful with earth’s limited resources. IKEA has unique capabilities and tremendous enthusiasm to make a positive contribution across the world – from the forests of Siberia to the cotton fields of India and all the way into people’s homes in New York, Lisbon and Shanghai. Our customers rightly expect us to not only to make our products in a responsible way, but also to help them live more sustainable

IKEA should request teenagers to do an advertisement and upload it on social network as most of the people these days are spending ¾ of the day on the internet. Thus there are higher chances for them to see those advertisements. This will increase awareness and the number of customers for IKEA, which will in return, increase its Sale.

market as many consumers actively buy into the cost-conscious mentality. Furthermore, the standard of living is higher than most countries. Quality is highly important as consumers are driven by value and demand quality products (Ferrell & Hartline, 2014). Ringstrom (2016) acknowledge that, IKEA relishes in the fact and status that they are a place for individuals that enjoy value and have thin wallets. The goal is to make customers and potential customers aware of their higher-quality goods all the while maintaining a popular appeal. They essentially build their success from low priced goods and

Promotion - In terms of promotion, IKEA follows a marketing mix. The data for this analysis is available in the student info website. Although the funding information is not readily available in student website, the information can be gathered from

Ikea's success in the retail furniture industry can be attributed to its vast experience in the retail market and its ability to integrate both product differentiation and cost leadership strategies successfully.

The next one will be the economical environment. During the economic recession, most people don’t want to spend too much. Customers will think twice before they pay for the product. IKEA have the advantage that the price is very reasonable for the general public. They can

IKEA’s strategy towards its suppliers is that of a low production costs strategy. IKEA wants to sell its products at the lowest possible price therefore their