Ikea’s Global Strategy: Furnishing the World

In: Business and Management

Submitted By albo207
Words 3656
Pages 15
IKEA’s Global Strategy: Furnishing the World
submitted by Brian Albanese
April 26, 2014

Executive Summary
This author has provided an analysis of the IKEA case study found in the Marketing Management textbook. It analyzes the strategies used by IKEA to gain competitive advantage in markets outside of its original market. The report provides a background of the organization, recognizes IKEA’s main markets and examines corporate level strategies by identifying its target market and evaluating its pricing strategies. This case study will further analyze how culture, design, and price play significant roles in determining IKEA’s success. In addition, IKEA’s “global sourcing network of more than 2300 suppliers in 67 countries” (Peter & Donnelly, 2013, p. 411) allows its suppliers to provide furniture of all kinds to its customers. IKEA produced standardized products, however, this international strategy did not work for the United States. Therefore, the company has to take corrective actions.

Table of Contents
Executive Summary i
Situational Analysis 1
Environment 1
Economic conditions and trends 1
Cultural and social values and trends 1
Political and legal issues 1
Technological factors 1
Summary of environmental opportunities and threats 2 Industry 2 Classification and definition of industry 2 Analysis of existing competitors 2 Analysis of potential new entrants 3 Analysis of substitute products 3 Analysis of suppliers 3 Analysis of buyers 3 Summary of industry opportunities and threats 4 Organization 4 Objectives and constraints 4 Financial condition 5 Management philosophy 5 Summary of the firm’s strengths and weaknesses 5 Marketing Strategy 6 Objectives…...

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