IKEA'S GLOBAL STRATEGY:
FURNISHING THE WORLD
第一组组员：蔡金雄 陈伟良 谢小彬 尹振国
1） What are IKEA's firm-specific
advantages? Country-specific
advantages?
IKEA's firm-specific advantages are as follows:
1. Product Design
In China, IKEA has already gone beyond the corporeal
concept of household goods, and become a fashion, life taste
of live specimens. Many consumers like the decoration in
their own homes before to take a look at the IKEA shopping,
in the light of IKEA's design Style of dress to their small nest.
IKEA’s products are, in fact, smooth, simple and practical
follow-oriented features, the rational pursuit of the typical
Nordic style, Ikea's design department well to combine art
and the market, developed in line with the style of IKEA
customers and meet the requirements of the product.
尹振国
2. Economic procurement
strategy
In addition to the Chinese mainland
IKEA prices somewhat on the high side,
the other in the global market, IKEA has
been low-cost high-quality image, that
benefit from its economic procurement
strategy. IKEA in the choice of suppliers
for the product, as a whole to consider the
lowest overall cost.
尹振国
3. Packaging
Although the furniture in the assembly is nothing new,
but Ikea is the first to put flat-packed into a mode of
operation. It was one sudden inspiration of Ikea staff, he
amputated legs of the table, so that not only can be loaded on
the table Vehicles, but also reduces the possibility of damage,
but also saves the cost of transport. In this way, IKEA has
made a problem into a opportunity to create a flat-packed
first. Today, flat packaging has become a large number of
household goods manufacturer of generic model, designed to
be removable furniture parts, flat-packed in the material, so
greatly reduce the volume of furniture.It saves a lot of
unnecessary transportation costs.
尹振国
4. Marketing
Various markets around the
world, IKEA's marketing
strategy is consistent, which is
relying on the market to buy
display, catalog marketing as
well as flat packs to win the
trust of consumers.
尹振国
2）What are the cultural factors which
make expansion abroad in retailing difficult?
What has made it possible in IKEA's case?
The retailers that are operating internationally have to face
with great challenges,because countries differ from one another in
many respects, such as their economic base, history, environment
and neighbours.Cultural Barrier is one of great challenges.The
cultural factors which make expansion abroad in retailing difficult
are as follows:
陈伟良
1)Material culture
Material cultule determines the way of people’s life. There is a big
difference between developing countris and developed countris in this
respect.
2)Language
Language barrier makes retailers difficult or even impossible to
communite with customers in target market .
3)Religion
Religion is an extremely serious issue. Violation of thereligion
rules will have very serious consequences, which is a retailer must
know before it entry a target market.
4)Custom and manner
It is hard to change people’s customs and manners.Retalers have
to learn and adapt to them.
陈伟良
IKEA has made it possible :
There is an old saying in china :“Know the enemy and
know yourself, and you can fight a hundred battles with no
danger of defeat”。 IKEA’s localization strategy make it
successful in many countries.
When IKEA enters a country, there will be smaller shops
setting up in order to adapt to the local environment.Some
positive actions will be taken, like learning the local customs
and manners, respecting customer’s faith, and employing
some local staff to overcome the language problem.
陈伟良
3)Describe how IKEA'S expansion has
re-energized mature markets around the
world and changed the competitive
situation.
一、IKEA's product strategy
二、Low-price strategy
三、Unique style of the channel
strategy
四、Promotion strategy
谢小彬
一、IKEA's product strategy
1、Accurate market positioning
IKEA's business philosophy is to
"provide a wide range of aesthetic and
practical, ordinary people could afford to
buy domestic goods."
2、Products in style, and favorable sales
IKEA’s products were sold by IKEA's
independent design, product unique style.
IKEA products stressed that "simple,
natural, fresh, well-designed" unique style
谢小彬
3、A beautifully designed and durable products
IKEA has always stressed the exquisite product design,
practical and durable. Of course, simply-designed, it is
not difficult, but on the basis of low prices, being
beautiful, practical, high-quality at the same time is
much more difficult.
4、Extensive product line
IKEA’s products range widely, for a total of more
than 10,000 kinds of products that customers could
choose. Basically, any taste of the customers can buy
furnitures which he/she needs for home in IKEA.
谢小彬
二、Low-price strategy
1、Low prices on the idea of product design
IKEA's R & D system is very unique, low-cost and can
become an efficient one.
2、IKEA’s innovation to reduce costs
IKEA use new materials and new technology to improve
performance and reduce prices continuously.
3、IKEA and customers co-operate to build a low price.
4、IKEA's global production management and logistics
system
5、Flat packaging strategy to reduce costs
谢小彬
三、Unique style of the channel
strategy
1、Self-control shopping channel
2、Succeeded in IKEA stores have become
a symbol of life
谢小彬
四、 Promotion strategy
Directory display -IKEA marketing
strategy- is an important part of the IKEA
product sales. In 1951, the first catalog of
the IKEA issued. Since then, every year in
September, IKEA gave its consumers free
charging for exquisitely directory at the
beginning of its new financial year.
谢小彬
4）How does the TV advertising campaign
initiated by IKEA overcome the entry barrier
of high advertising expenditures ？
 In order to answer this question, we should find out the
target market of IKEA----People who are young, highly
educated, liberal in their cultural values, white-collar
workers, and not especially concerned with status symbols.
That means all the people are not able to understand these
new and accept them . So, TV advertising may not be a best
way for IKEA to choose in commercial-making, for they
are faced to all the people in different ages ,and cost a lot as
well. Instead of making TV commercials ,IKEA created
several new way in promotion.
蔡金雄
1.
IKEA’ s promotion is centered on the catalog of new
types. These catalogues are carefully designed and
beautifully printed, and are sent to the customers for free.
The IKEA catalog is printed in 13 languages and has a
worldwide circulation of well over 50 million copies. With
these catalogues , information of new furniture products ,
new convictions of IKEA ,and even solutions of furnishing
life can be given to the customers. This will enable the
customers to learn concepts of furniture-making and gain
inspiration and inventions by scanning these fascinating
catalogues. A way like this of publicizing products can be
more efficient and superior to any other forms .
蔡金雄
2.
Beside that, in 2002, a series of 8 minutes TV plays ,
showing the customers how to solve problems in decorating
furniture and providing them with a comfortable
environment to know more about IKEA ‘s products and
services. The TV plays were played once a week in
Shanghai and Beijing from Sept.13 and had a great effect
on promoting .
蔡金雄
3.
Recently ,in Sweden ,IKEA and Forsman & Bodenfors
are back with a crazy＂in the wardrobe＂experience. A
great branding campaign where music plays a key role to
entertain and drive further exploration of the site.
The characters in each room are weird enough to get
your attention and make you wonder "what the hell is going
on here?". From the superheroes to the mustached twins,
Ikea seems to be able to content (and contain) everybody
That is the secrete of IKEA’ s avoiding from substantial
advertising expenditures.
蔡金雄
5）Should IKEA expand further in the United
States or focus on other countries?
As the biggest Home Furnishings Retailer which has a
large number of chain stores all over the world, IKEA
should take the market of the United States and that of other
countries as equal.
1. As we know, the IKEA Concept is based on creating
well-designed and functional home products for people at
prices so low that as many people as possible will be able to
afford.
所有组员
Though , generally speaking, most of the Americans
are now living in a higher life label than the world’s average
standard , there are still people who are not able to afford
quality furniture. So the promotion in America market should
keep running ,moreover, more competitive and efficient
promotion strategies are required.
2. In other countries , IKEA furniture is easier to be
strongly competitive, for there is more possibly to be less risk
and competitors who are handling quality house furnishings,
and , more people who can only afford house furniture at a
relevant lower price. This is a good opportunity which IKEA
has been long for.
所有组员
conclusion
IKEA is a global company ,its
target market should not be limited
in a area.
所有组员
Thanks for watching !
Wish you the best of luck in everything you do !