Essay on Marketing and Ikea

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Case Study IKEA: Expanding through franchising to the South American market? Introduction This report is made by four, fourth year IBMS students for a marketing course. This report is based on a case from the book Global Marketing, by Svend Hollensen. The basis of this report is the international operating company IKEA. The main question that will be answered in this report is: Should IKEA expand further through franchising to the South American market? To answer this question the current situation of IKEA will be taken into account in this report. Next to this also other aspects like a SWOT analysis and other theoretical information will be used to come to conclusion, recommendation and possible implementation. Table of…show more content…
SWOT As describe in the current situation IKEA is doing well, and their concept is working worldwide. But as every company, IKEA also has weaknesses and threats also come along IKEA’s path. A good way of making an overview of not only the internal, but also external situation of IKEA, is by a SWOT analysis. In this chapter IKEA’s strengths and weaknesses, as well as the companies opportunities and threats will be shown in a SWOT analysis. IKEA’s Strengths Strengths are company resources that represent competitive assets. Next to this strengths are very important for a company’s competitiveness and ability to succeed within a market. IKEA’s strengths can be defined as following; * IKEA’s strong, and worldwide known brand * IKEA’s strong concept and vision * IKEA`s partnerships with suppliers (long-term and high quality) * Economies of scale IKEA`s Weaknesses Weaknesses are the opposites of strengths, and therefore a company’s competitive liabilities. IKEA’s weaknesses can be defined as following; * IKEA’s rapid growth and worldwide of activities (centralized startegy) * Keep the information flow to customers and stakeholders up-to date IKEA’s Opportunities A market opportunity is an opportunity for the company is the company’s strengths can be used to gain from the situation. Opportunities for IKEA can be defined as following; * Continue developing (even)
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