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IKEA Essay Topics & Paper Examples

History of IKEA

Ingvar Kamprad founded IKEA in 1943. The name IKEA is formed from Kamprad’s initials (I.K.) plus the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he grew up (1). IKEA originally sold pens, wallets, picture frames, table runners, watches, and jewelry and nylon stockings. Known today for its furniture, IKEA did not start furniture sales until 1948. Kamprad saw opportunities for selling furniture on a large scale, distributing the first catalogue in 1951. In 1955, in the midst of a fierce price war with a competitor, Kamprad took his company a step further by opening the first store showroom. The concept behind this was that customers could now touch and look at IKEA home furnishings…

Ikea Operations Management

Profile: ikea IKEA is the world’s most successful mass-market retailer, selling Scandinavian-style home furnishings and other house goods in 230 stores in 33 countries and hosting 410 million shoppers per year. An acronym for founder Ingvar Kamprad and his boyhood home of Elmtaryd, Agunnaryd, IKEA began operating in Sweden in 1943 and continues its original ethos based upon cost obsession fused with design culture. No design, no matter how inspired, finds its way into the catalogue if it cannot be made affordable. With an aim of lowering prices across its entire offering by an average of 2% to 3% each year, its signature feature is the flat packed product that customers assemble at home, thus reducing transportation costs. Yet, unlike…

Success of Ikea

What factors account for the success of IKEA? Ikea’s Success can be attributed to many factors, but can be classified into two broad categories: product differentiation and cost leadership. Product Differentiation Ikea’s simple yet elegant yet elegant Scandanavian designs reflect solid consumer awareness, as its designs resonated well with the consumer. Cost Leadership In our opinion, IKEA’s cost leadership was the strongest contributor to its success. Its MORE FOR LESS positioning strategy appealed both to consumers and itself. Through innovative cost cutting methods, IKEA differentiated itself successfully from its competitiors (Ethan Allen, Thomasville, or Jordan’s Furniture), who compete heavily on selection, with numerous product types boasting substyles, which lead to huge inventories, on top of offering delivery and set up…

Resistance to Cultural Change

1) Please explain: How “resistance to cultural change” can influence international product introduction? Culture in the context of marketing can be seen an aggregate of customs and habits shared by a group of people. It affects consumption patterns of consumers considerably. These practices in concrete market can’t be changed easily by any brand. Brands need to adopt their strategies and communications to cultural philosophy and find the balance between standardization and customization. If they do not, they are likely to fail in Internationalization of products. 2) Please provide 2 detailed examples of real companies that have faced this situation and have failed. Why their strategies didn’t work? Failure of IKEA in Japan (1970s) IKEA is Swedish furniture retail company famous…

IKEA

The founder of IKEA is Ingvar Kampard in Sweden since 1943. IKEA originally is selling fish, Christmas magazines, matches and seeds. Acronym for IKEA stands for I and K is founder’s initial name, E is Elmtaryd, his family farm name, A is Agunnaryd, a name from a village in Sweden where the farm located. In 1948, IKEA starts adding furniture in product line. IKEA goals are to provide stylish, functional design and cost efficiency which most of the people can afford it. Hereby, he starts to adapt machine production, Gillis Lundgren implement this concept and he come out the idea of self assembly, which pack the furniture into flat pack. In 1957, IKEA started his self assembly concept. In 1958,…

Ikea Case Study

Synopsis This case study is to deliberate about IKEA’s marketing strategy in reaching out customers. Also discussing about IKEA’s business idea and IKEA follows a quite traditional pattern of internationalizing and also drives the localization thoughts in different market place to stay competitive. Their vision “To create a better everyday life for the many” and their ultimate business idea “ To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them” actually has inspired many shoppers and influence the way people shop. IKEA’s Background IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. The…

Ikea Global Marketing

IKEA crossing cultural boundaries to furnish the globe 1. How has IKEA successfully sold its home furnishing products in so many countries around the world? Do global customer segments truly exist? Ikea targets consumers who tend to have a young ‘mental age’ — that is, people who have a youthful outlook regarding the design of home furnishings. Industry analysts have described IKEA’s approach as targeting middle-class consumers including first-time home buyers, young families, and people renting their homes that transcend global needs. However, students may argue for forces against global segments, such as resistance to international brands in favour of local brands and anti-western sentiments. Students may also note cultural/attititudal differences in various product categories that make targeting global segments…

Ikea Order Fulfillment

IKEA is a privately owned business. It is an international home products retailer. IKEA sells things that are needed for household purpose. For example, accessories, bathroom, furniture, and kitchen items in their retail stores. IKEA has retail stores all over the world. IKEA sell their design furniture and goods at an affordable price. Currently IKEA is the world’s largest furniture retailer. More about the history, IKEA was founded in 1943. It was founded by 17‐year‐old Ingvar Kamprad in Sweden and it is owned by a Dutch registered foundation. It was controlled by the Kamprad family. IKEA started its first retail business in Sweden. As of August 2009, IKEA has 301 stores in 37 countries, most of them in Asia, North…

Ikea Swot Analysis

Strengths: * IKEA offers a unique value proposition to its customers. It offers a wide range of well designed, functional products at low prices. The design begins with low costs from the outset, striking an ideal balance between function, quality, design, and price. * IKEA introduced the flat package which can be assembled by customers * IKEA has maintained long-term relationships with its suppliers, ensuring the company has access to high-quality materials at reasonable prices. Because of this, IKEA has some of the largest margins in the industry. * IKEA’s vision is to create a better everyday life for many people, putting the concerns for the environment and people at the heart of the business. Weaknesses: * The need for…

The Study of Ikea’s Business Strategy

Price and promotion Ikea is not only a furnishings market brand, but also a furniture brand. Through a series of operations, in people’s eyes, Ikea is not simply a purchase house ware places, it represents a way of life. In our mind, Ikea’s success not only depends on its integration of the trade, logistics, but it used to integrate the core idea of trade, logistics-lifestyle (Margonelli, Lisa 2002). As we said before: using Ikea’s products is just like eating McDonald’s, drinking starbucks coffee, becoming a symbol of a lifestyle. Ikea’s management idea is “provide various kinds, beautiful and practical products, promising that most people can afford the household articles for use”. In Britain, Ikea position himself into the provider of…

IKEA: SWOT analysis

This resource can be used for general classwork, homework or learning skills for investigation. It is a good simple exercise in bringing the various terminologies together in understanding what it means, and how it can be used in context. This allows the pupils to bring out more in discussion and understand that the topics covered in Business Studies are not insular. The outcome will be by differentiation. First Activity: Using the case study and any other resources, define the following words: Multinational Company; Primary sector; Secondary sector; Tertiary sector; job production; batch production; flow production; lean production; product range; product mix; diversification; new product development; franchisor; franchisee; market share; consumer; employees; stakeholders; channel of distribution; sourcing; pricing strategy; market segment;…

Closing Case of IKEA

QUESTION 1: How has the globalization of markets benefited IKEA? ANSWER: The globalization of markets refers to the fact that in many industries historically distinct and separate national markets are merging into one huge global marketplace in which the tastes and preferences of consumers in different nations are beginning to converge upon some global norm. IKEA has been able to benefit from this trend by following a strategy that is largely standardized. Its basic strategy is to sell Swedish-inspired furnishings and households goods to middle class consumers across the globe at low prices. The company is able to use the same colors and designs in its warehouse style stores worldwide. Inside the stores are products that are essentially the same…

IKEA

IKEA was founded in Sweden in 1943 by Ingvar Kamprad. IKEA is a home furnishings retailer unlike any other. It was founded on the basis of low cost and it offers modern and stylish furniture for all types of people at affordable prices. IKEA’s unique way of shopping, store layout, and do-it-yourself approach continues to help maintain their popularity. 1)Given the SWOT analysis presented in the case, what are IKEA’s key competitive advantages? What strategic focus should the company take as it looks to further expand into the U.S. market? Given the SWOT analysis presented in the case, IKEA definitely has some key competitive advantages. All of the strengths mentioned in the case are very beneficial but the strongest I…

Marketing Strategy at Ikea

Synopsis The case study is to discuss about the different strategy used by IKEA to approach their customers. It is also talking about the localization concept from a global company based on the cultural demand from different countries worldwide. IKEA is also famous for their less expensive furniture, has some other strategies to “reach” the customers based on their needs. 4 Ps concept plays a very important role on IKEA’s success besides the way of shopping which is differ from all other their competitor. Company Background 1920s At the age of five Ingvar Kamprad starts selling matches to his next door neighbors and by the time he is seven, he starts selling to further neighborhood, using his bicycle. He buy…

Operational Logistics of Ikea

1. Introduction IKEA is a Swedish company which was founded in 1943 with its headquarter in Denmark. IKEA succeeded on its low cost strategy which is able to offer a wide range of stylish home furniture with good design and functional at competitive pricing. It carries a range of nearly 10,000 products and is well known across the world. IKEA is also recognized as a socially responsible and environmental friendly company. Currently, there are 287 IKEA stores in 26 countries. In year 2011, IKEA has gained the total sales of 25.2 billion (in EUR). IKEA was also the first company in the world to realize the benefits of flat pack furniture in 1956. With this flat pack method its does…

IKEA Case

Originating in Sweden, within the early 1940’s, the IKEA home furnishing stores became world renown for offering stylish furniture for home and offices at a very low cost. In the beginning growth stages of the company, IKEA continued to keep its products and operations international and to not customize its products to local markets. By doing this, IKEA was able to continue doing what helps the company to achieve competitive advantage; minimizing costs. As the years progressed and the furniture company grew internationally, IKEA introduced the popular furnishing brand to the United States. Bringing IKEA to the United States poses a few issues the world’s top furniture retailer. Now with successful operation in its US locations, IKEA must strategically manage…

Internal and External process in IKEA

IKEA is a privately-owned, international retailer of home products. The company sells flat pack furniture, accessories, and bathroom and kitchen items in their retail stores globally. The company is the market leader in the flat-pack design furniture and sells at affordable prices. IKEA is now the world’s largest furniture manufacturer. IKEA was started in 1943 by Ingvar Kamprad in Sweden and it is owned by a Dutch-based foundation and controlled by the Kamprad family. IKEA is an acronym representing the initials of the founder’s name, Ingvar Kamprad, then ‘E’ comes from Elmtaryd, which is the farm in which Kamprad grew up and finally his native place, Agunnaryd, located in Smaland in the South part of Sweden. The parent company is…

IKEA’s Global Sourcing Challenge

Indian Rugs and Child Labor (A) In May 1995, Marianne Barner faced a tough decision. After just two years with IKEA, the world’s largest furniture retailer, and less than a year into her job as business area manager for carpets, she was faced with the decision of cutting off one of the company’s major suppliers of Indian rugs. While such a move would disrupt supply and affect sales, she found the reasons to do so quite compelling. A German TV station had just broadcast an investigative report naming the supplier as one that used child labor in the production of rugs made for IKEA. What frustrated Barner was that, like all other IKEA suppliers, this large, well-regarded company had recently…

IKEA Case

1. ) There are three main factors that account for IKEA’s success in the furniture retailing industry: (a) its unique, Scandinavian designs, (b) its product strategy, and (c) its cost efficiency. a. IKEA’s simple, yet unique designs are undoubtedly a critical factor in its success as a furniture retailing company. In its early years, IKEA’s cost-focused strategy led to its manufacturing of “low-priced furniture [that] was functional at best, ugly at worst” (4). However, over the last decade, the company has deliberately focused on creating products with a more distinct design aesthetic. Today, consumers appreciate IKEA furniture for its both its functionality and appeal, rather than solely for its functionality. Ingvar Kamprad, the company’s founder, first introduced furniture into the…

IKEA’s Global Sourcing Challenge

1. Marianna Barner should decline the invitation for IKEA to have a representative appear on the upcoming forecast of the German video program. The producers of the documentary invited them to take part in a live discussion during the airing, and while this offer does sound beneficial for IKEA to educate the public and the producers of the current efforts taken to fight child labor, it would not be in their best interest. This is attributed to the fact that the producers refuse to let IKEA preview the video beforehand and that they are aware that the producers “planned to take a confrontational and aggressive approach” directly aimed at them. As a result, there is a very high possibility that…

Assignment IKEA Case Study

IKEA is a Swedish-owned global business founded in 1943. The business generates annual revenues of 27 billion euros and employs 139,000 people in 298 stores and 26 countries. The values and design philosophy of the founder continue to underpin the brand. These values might be summed up as frugal, democratic, environmentally aware, and design oriented. IKEA has become synonymous with Swedish lifestyle. The stores are virtually identical across the globe and sell a range of globally sourced flat-packed furniture products as well as a range of related furnishings for the home—the stores offer customers a Swedish experience by incorporating restaurants and a variety of customer services intended to simplify the shopping process (e.g., childcare). What is interesting about IKEA is…

Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor

IKEA is a Swedish company producing home furnishing products at low prices. The company was founded in 1943 by Ingvar Kamprad and kept growing tremendously from 2 stores in 1964 to 114 stores in 1994. It’s very useful to mention the ikea’s vision that says “Creating a better life for the many people” for understanding the deep credo of saving cost among all the departments of IKEA, everything that IKEA does has the aim of reducing price to the customer. Besides its success stories, the company has faced environmental and social issues. The environmental issue of Formaldehyde was solved but sales dropped by 20% in Denmark. In 1992, the company got the same issue, which cost IKEA around $7 million….

Strategic Management in Dynamic Environments

After some good discussions and ideas regarding the expansion plans of the furniture company, the realization comes about that the main factor to consider is the competition that will be encountered in the expansion country of choice. As a result, there needs to be further research done regarding the top competition for the furniture company in China. After researching furniture companies in China, the two companies that have been chosen are IKEA and Markor International Furniture Company. IKEA is a company that started out small by a five year old boy with an entrepreneurial spirit selling pencils and match sticks to neighbors. Because of his drive and determination to help out his family, the IKEA brand started in 1943 and…

The Manland Experiment

1. The Manland experiment lasted only one weekend in one store. The marketing advantages and disadvantages of expanding it to other stores? Do you think IKEA should do more with this idea? Why or why not? The advantage was this was an attempt to continue IKEA’s image as family-friendly with the goal to appeal to all men as an environment offering a rewarding shopping experience. The area was set up for men to play video games or watch sports while their wives or girlfriends shopped. The disadvantage is the campaign targeted heterosexual men, who do not like shopping. IKEA was among the first advertisers to target gay couples. However, homosexual, single and men, who enjoy shopping were overlooked in this…

IKEA Brand Scorecard Final

Introduction The brandscore card is an essential element used to evaluate the overall equity of a brand. The scorecard is an effective way to asses the unmet needs of the brands customers, it enables the brand to stay relevant and effective in the marketplace in a methodological manner. The scorecard should be able to fill any gaps that have developed within the brand’s approach to management and its strategic direction, as well as developing and maintaining a functional management system that can grow as the brand grows, while remaining comprehensive and completely brand relevant. (Kaplan and Norton, n.d.) In terms of evaluating the current situation of a brand, a brand scorecard enforces a successful management plan by directly addressing what…

Cultures in apa style

As businesses become global, limitations between cultures and environments crumbled little by little. However, within the vastly developing globalization, business observers discovered many ‘unpredictable’ phenomena. These phenomena come to the scope of observation, only after globalization is widely accepted by firms all over the world. One of these phenomena is the success of corporations from unfamiliar cultures, which were previously never expected to generate notable business growth or extraordinary innovation. Some of those companies are IKEA, Volvo, Electrolux, Scania, Hennez and Mauritz, etc. All of these mentioned corporations are Swedish in origins. Nevertheless, there are also significant developments displayed by those cultures which are predicted to dominate future global markets, like the Chinese market. The Chinese business culture and the…

IKEA Case Study

The founder of IKEA, Ingmar Kamprad, felt furniture should be affordable by those of modest income with a minimalist style. To achieve his goals, Kamprad knew he had to source and adapt materials cheaply and find suppliers using production machines to keep manufacturing costs low (Hill, 2014). Kamprad took IKEA’s furniture direct to consumers bypassing the traditional middle-man, retail store in Sweden. The strategic goal was to set a target price at 50% below competition, then find a way to design furniture to meet the price goal. Legal, Cultural, and Ethical Challenges The biggest hurdle IKEA faced initially was a culture of fragmented, established furniture retailers in Sweden selling expensive furniture expecting it to be passed down as heirlooms. Established…

IKEA India Entry Strategy

IKEA originated in 1943 by a 17 year old Ingvar Kamprad using his entrepreneurial skills selling items out of a catalog and continued to expand where his stores is located in more than 30 countries currently. IKEA sells furniture and other household products at a very low price so that everyone can afford them. IKEA is always looking to save money on their packaging, costs, and any other opportunity they get to save money. As a team we thought it would be most beneficial for IKEA to enter into India specifically Mumbai, India. India is one of the most emerging countries and gives IKEA a great opportunity. As a team we feel IKEA should implement interior designers that help people…

IKEA: expanding through franchising

It is the beginning of 2011, and Ingvar kamprad, founder of the Swedish furniture retailing giant IkEA, is concerned ‘his’ firm may be growing too quickly. he used to be in favour of rapid expansion, but he has now started to worry that the firm may be forced to close stores in the event of a sustained economic downturn. on the other hand, IkEA is active in nearly all the world’s con- tinents, though to a lesser degree in South America. kamprad wonders if this continent, and in particular Brazil, could be a future growth market for IkEA. Although IkEA is one of Sweden’s best-known exports, it has not, in a strict legal sense, been Swedish since the early 1980s. the…

Competitive advantage of IKEA

INTRODUCTION In this modern hypercompetitive marketplace, a company must be a powerful competitor to survive. A company must possess a powerful strategy in order to become a powerful competitor. But what makes a good strategy for the company? A good business strategy would be that to attain a competitive advantage over other competitors. So what is a competitive advantage? And how company can be able to have a competitive advantage over other competitors? This essay would now discuss what a competitive advantage is and how a company can build a competitive advantage over other competitors in the same industry by using two furnishing stores, Ikea and Courts as examples. COMPETITIVE ADVANTAGE Definition A company is said have competitive advantage over…