Ikea’s Approach Toward International Marketing and Trade

3449 Words14 Pages
IKEA’s Approach toward
International Marketing and Trade
And
Doing Business in United States

Hossein Kazemi
S.N. 100841490

Prepared for Professor David Cray
July 15, 2012

IBUS 5711 & IBUS 5713

Sprott School of Business
Carleton University

July, 15, 2012
IBUS 5711
International Marketing and Trade “IKEA”
Submitted to Professor David Cray
By Hossein Kazemi Student # 100841490

IKEA is known as the world’s largest international home product retail company. The compony established in Sweden by a 17 year old boy named Ingvar Kamprad in 1943 (Wikipedia, 2012). The company was ranked 44th in a list of the top 100 international brands by interbrand and has more than 220 stores operating in 41 countries with 29 trading service
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For instance, it was failing to successfully penetrate the US Hispanic market. By visiting its own Hispanic employees, it realised the Swedish standard of small couches and dining tables did not work in an environment where extended families spend their time together. Therefore, it providing larger furniture items in stores to target the Hispanic market, and extended this approach into other parts of the world with similar culture (Mark, 2009). Furthermore, IKEA needs to understand that products like home furnishing which demonstrating design and fashion have very strong ties with culture. People’s life style won’t just change over the night. Identifying cultural differences and cultural needs are very important in penetrating a new market. However, with a good performance and CSR (corporate social responsibility) trust can be created and company can itself be accepted and even become part of the culture over the time.
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,

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