Ikea Case Study Essay

4556 Words Apr 6th, 2009 19 Pages
IKEA CASE STUDY (Current Position, Value Chain Approach, Goes Forth)

Word Count: 2,884

IKEA is the world’s largest furniture retailer, specialising in selling stylish, inexpensive, self assembly Scandinavian design furniture, home accessories, kitchens and bathrooms in their retail stores around the world. Delivering good quality contemporary design furniture to the middle class consumer is not the only focus of the IKEA group; it also sells a lifestyle that customers around the world recognise and embrace. IKEA is a global company that has invested and is present in many countries; it promotes its products and services using the same brand in all markets coordinated from its one main corporate office in Sweden which is responsible
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However, this will leave the company with a dilemma if these product variations destroy the original ‘product concept’ and IKEA philosophy in general.
One of IKEA’s strengths is its brand, and it is highly related to its product and unique design, which IKEA cleverly manipulate through unique promotional campaigns. This helps to strengthen its brand reputation and almost religious customer following; even customers who had a negative experience still state that they would come back for more. The promotions are intentionally bounded with culture of the country IKEA is targeting. Through the set of sale promotions, PR and advertising IKEA communicates with their customers and sends out a clear message about their product, prices and the ‘IKEA way’.
IKEA promotes customer self-service as the way of making choices and selecting the lifestyle you’d like to live in. Culture is one of the main elements of these promotions, IKEA adopts those in order to appeal more to the customers of the region. For example, Chinese New Year is mentioned in product policy in China. Another element to consider is language, as a lot of furniture names may not be relevant to a particular country and in some cases offensive, IKEA has made a few blunders in Germany (child's bed called Gutvik, has offensive meaning in German.).
However, IKEA does not stop

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