Introduction:Case summary:The Swedish company IKEA was the largest furniture retailer in the world with turnover of £20.6 billion in 2009, representing 2.4% of worldwide sales across the countries in which it operates, sells inexpensive Scandinavian design products including furniture, accessories, bathrooms and kitchens in 231 stores in 24 countries in Europe, the United States, Asia, the Middle East and Austria. IKEA is famous for its great concept, low price, wide product range and flat packaging. The purpose of the case study is to examine the objectives and strategies used by IKEA, the difficulties its rivalry faced imitating IKEA and the danger of the strategy used by this famous company. About IKEA: IKEA is a privately held universal home products retail company that sells furniture, accessories, and bathroom and kitchen items in their retail stores around the world. The company, a pioneer of reasonably priced flat-pack design equipment, is now the largest furniture retailer in the world. IKEA was created in 1943 by Ingvad Kamprad in Sweden and is owned by a Dutch foundation controlled by the Kamprad family. The company born in Småland, Sweden, distributes its products through its points of sale. As of 2009, the chain has more than 250 stores in 24 countries. (IKEA, 2011-2014)History of IKEA:The IKEA idea was born when Ingvar Kamprad, a Swedish entrepreneur, Småland, had an innovative idea. In Småland, although the soil is thin and poor, the people are hard workers, live frugally and make the most of limited resources. In 1940, Ingvar started his furniture manufacturing business and used his success in Småland for the home furnishings market. Ingvar'... in the center of the card... a better life for many people. new target markets are considering IKEA as a breath of fresh air, such as the Middle East, Australia and China market. IKEA presents a new strategic model for its rivals, a new lifestyle and services for customers. Since it involves operating in global markets and universal business, it is not known which strategy will best suit such international companies, whether a Global standardization, or internationalization, transnational or localization, which global strategy will be successful and in which corner of the world. All that can be concluded is that before entering a new market a company must do its “necessary homework”. This will save a company millions and billions of dollars and will also help in long-term sustaining and protecting its competitive advantage in the international market as well..
tags