Analysis And Strategies Of The Company Ikea Marketing Essay

Analysis And Strategies Of The Company Ikea Marketing Essay Ikea’s mission is simple, ‘keep making furniture less expensive without making it cheap† (www.Ikea.com) .Because IKEA concentrated on standardizing their products and operations throughout the world, their operating costs were reduced. However, they learnt quickly enough that if they wanted to penetrate the United States (US} market they had to change their operations and adapt to meet the needs of the local market. This resulted in increased cost but it was necessary in order to encourage sales. Today the US Market is ranked in the top five (5) sales countries in the sales area. Sustainability report 2010 STRATEGIES Ikea’s four additional countries to move to thirty- eight. Their stores are strategically located and conducive for family outing with places available for children to be pre-occupied. For a holistic shopping experience their outlets are equipped with reasonable price restaurants and cafes. Promotion – The IKEA Catalogue is a vital part of its existence with a wide reach. It assists consumers find the right product at the right time. In 2010 the catalogue was printed in 198 million copies in 27 languages and 56 editions .A new more resource efficient format was introduced in 2009? (Sustainability report 2009). The second feature of IKEA’s promotion is the standardized theme. Their logo can be spotted at a distance. The following are examples of some of the strategic analysis that may have been considered by Ikea: SWOT ANALYSIS In order compete effectively as they have been doing. Ikea would have had to perform a (SWOT) analysis to assist in obtaining their objectives. This analysis is a strategic planning tool that looks at the strength, weaknesses, opportunities and threats of any business undertaking. Strengths Looking at the table above it is clear to surmise that Ikea has ridden the waves fairly well and is a profitable company, earning 23.8(Eur. billion) in sales in 2010. Ikea has brand appeal. Because of their modern style and attractive furnishings they are able to attracts consumers of different origins and cultures with their same range of functional and well-designed products and quality across borders which can play a vital part in Ikea being able to keep its’ customers The company has a strong international presence. Ikea’s store was visited 699,000,000 compared to 404,000,000 in 2004 worldwide (ikea .com). They are unique in that customers are allowed to be part of the value chain by playing a direct role in the selection, assembly and transportation of their furniture. It’s also all inclusive to allow families to come in and sit and enjoy with their playgrounds and food courts. Weakness One of Ikea’s weaknesses could be the location areas of their stores which are located outside of city centres and may not be accessible to pedestrians. The ‘do it yourself’ motto may not appeal to everyone and some may even feel intimidated by the wide range and lack of assistance. Opportunities Sourcing from China is seen as an opportunity to lower cost and by extension increase market share. Today Ikea has over 120 suppliers in 54 countries (Ikea sustainability report 2009)They have taken advantage of technology by introducing its online catalogue as a means of generating more sales, because of e-commerce, a lot more people shop online an. Statistic shows that more people are viewing the catalogues because circulation have increased from 131,500,00 in 2003 to 198,000,000 in 2010.