Marketing and Ikea

1236 WordsNov 7, 20105 Pages
Petrut Bumbanac International Business Shamla Chebolu November 6, 2010 IKEA – The Global Retailer 1. How is IKEA profiting from global expansion? What is the essence of its strategy for creating value by expanding internationally? IKEA increased its growth rate by taking its products developed at home and selling then internationally. This expansion allowed the company to offer its products not only to the Swedish consumer, but also to other consumers around the world, in an effort to increase profits and further develop the company. The company had a defined strategy when it chose to make a move on the international market, a strategy that focused on cost reduction that allowed its offerings to be sold faster at a discounted…show more content…
This catalog is the easiest wand most convenient way for the company to advertise and market its offerings to the consumers around the world. I believe that this is strength in the company’s strategy because it allows the company to advertise its products right into the homes of consumers around the globe. Another strength of its strategic posture is that IKEA was able to model its advertising campaigns by each country’s culture, enabling this way consumer across the world to make IKEA their primary shopping experience when it came to home furnishings. Ikea started with an aggressive international expansion with the goal of becoming the world’s most successful global retailer, and for the most part it succeeded. This could be viewed as a weakness in today’s global market as the consumer market has weakened over the past couple of years given the current financial crisis, which may result modest return and transform into a gap that will be hard to fill. Another weakness I believe from visiting the website is that Ikea offers a limited selection of products unlike its new competitors, especially in the U.S. which can be a key factor when it comes to future sales and growth. 3. How has the strategic posture of IKEA changed as a result of its experience in he U.S.? Why did it change its strategy? How would you characterize the strategy of IKEA today? The posture of Ikea has changed drastically since the company entered the U.S. market. Once in the

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