Case Study: IKEA

1099 Words3 Pages

Case Study 6.1
Kishan solanki
University of the Potomac
BUS510 Strategic Management
07/17/2016
Professor
Petya Nikolova

Abstract This case study is the analysis of IKEA, It is a multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. As of January 2008, it is the world 's largest furniture retailer. Founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad, who was listed as one of the world 's richest people in 2013,

Since its 1943 founding in Sweden, IKEA has offered home furnishings and accessories of good design and function at low prices so the majority of the people can afford them. IKEA
We do our part, you do yours. Together we save money” and focuses on a commitment to product design, consumer value and clever solutions. By using inexpensive materials in a novel way and minimising production, distribution and retail costs, their customers benefit from low prices.
IKEA has more than 590 million visitors per year to its stores all over the world. In addition to the visitors in the stores, some 450 million visitors are tracked entering the IKEA website. IKEA’s main marketing channel is its catalogue that is distributed world-wide as 191 million copies (in 56 different editions and 27 different languages) displaying some of IKEA’s 9,500 different
The IKEA advertising, PR and other types of communication are complements to the IKEA range; store and catalogue are used to spearhead the penetration of our target market.

International Marketing strategies
IKEA is known globally for its low prices and innovatively designed furniture. In China, however, it faced peculiar problems. Its low-price strategy created confusion among aspirational Chinese consumers while local competitors copied its designs. This case study analyses how IKEA adapted its strategies to expand and become profitable in China. It also assesses some lessons the company learnt in China that might be useful in India, where it plans to open its first store by 2014 and 25 stores in 10 to 15 years.

Suggestions to expansion of

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