IKEA

Introduction:

Summary of the case:

Swedish firm IKEA was the world’s biggest furniture retailer with sales of £20.6 billion in 2009 which represent 2.4 percent of the world sales through the countries it operates, it vend inexpensive product of Scandinavian design comprising furniture, accessories, bathrooms and kitchens at 231 stores in 24 countries across Europe, US, Asia, Middle East and Austria. IKEA is famous for its exceptional concept, low price, varied range of goods and flat packing.

The aim from the case study is to examine the objectives and strategies used by IKEA, difficulties that it rivalry faced while imitating IKEA, and the danger of the strategy used by this famous company. About IKEA: IKEA is a privately­held, universal home products retail that vends penthouses pack furniture, accessories, and bathroom and kitchen articles in their retail stores all over the world. The firm, which pioneered flat pack design equipment at reasonable prices, is now the world's biggest furniture retailer. IKEA was created in 1943 by Ingvad Kamprad in Sweden and it is owned by a Dutch registered foundation controlled by the Kamprad family. The firm that was originated in Småland, Sweden, distributes its goods via its retail outlets. By 2009, the chain has more than 250 stores in 24 countries. (IKEA, 2011-2014)

History of IKEA:

The IKEA Idea initiated when Ingvar Kamprad, an entrepreneur from Sweden, Småland had an innovative idea. In Småland, although the soil is thin and poor, people there are a hard workers, living frugally and making the most out of limited resources. In 1940, Ingvar began his furniture business, he used his acknowledge he got in Småland to the home furnishings market.

Ingvar'...

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...etter life for many people.

As a famous global firm, new target markets is considering IKEA as a fresh air such as: Middle East, Australia and China marketplace. IKEA comes up with a new strategy model to their rivals, new life style and services to the clients.

As it is about operating in Global Markets, and Universal Business, it is not known which strategy will best suit such international corporations, whether a Global standardization, or Internationalization, Transnational, or Localization, which global strategy is going to be successful and in which angle of the world. All that can be concluded is that before entering into a new market a company have to do its “necessary homework’s. This will save millions and billions of dollars of a firm and will also aid to sustain in the long run and protect its competitive advantage in the international market as well.