Marketing and Ikea Essay
November 6, 2010
IKEA – The Global Retailer
1. How is IKEA profiting from global expansion? What is the essence of its strategy for creating value by expanding internationally?
IKEA increased its growth rate by taking its products developed at home and selling then internationally. This expansion allowed the company to offer its products not only to the Swedish consumer, but also to other consumers around the world, in an effort to increase profits and further develop the company. The company had a defined strategy when it chose to make a move on the international market, a strategy that focused on cost reduction that allowed its offerings to be sold faster at a discounted …show more content…
2. How would you characterize Ikea’s original strategic posture in foreign markets? What were the strengths of this posture? What were the weaknesses?
Ikea’s original strategic posture in foreign markets had the ability to shape the future of this industry, allowing the company to act as a true leader in its field by creating high quality standards, by offering high quality products at acceptable prices, and by being innovated in the foreign market. The company still uses the same basic retailing formula that offered success in the mid nineteenth century, selling its various high-quality offerings in big stores at low-prices. The strengths of this posture is that IKEA continued to attract the same middle class consumers who were looking to spend their money on well-designed furniture sold at affordable process, which over the years became Ikea’s trademark.. Ikea’s original strategy changed the way people bought furniture. Today IKEA uses as its main marketing strategy, along