Essay on Marketing and Ikea

6334 Words Dec 4th, 2010 26 Pages
Case Study

IKEA: Expanding through franchising to the South American market?

Introduction

This report is made by four, fourth year IBMS students for a marketing course. This report is based on a case from the book Global Marketing, by Svend Hollensen. The basis of this report is the international operating company IKEA. The main question that will be answered in this report is:

Should IKEA expand further through franchising to the South American market?

To answer this question the current situation of IKEA will be taken into account in this report. Next to this also other aspects like a SWOT analysis and other theoretical information will be used to come to conclusion, recommendation and possible implementation.

Table of
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Threats for IKEA can be defined as following; * Growing number of retailers are offering low cost furniture * The global economical crisis makes that the consuming behavior worldwide has dropped, because of a increase in unemployment rates and a decrease in disposable income of consumers

Conclusion SWOT analysis
To being able to make a good conclusion of IKEA’s SWOT analysis, the following figure will give a simple but clear overview of the above described parts of the SWOT analysis.
Internal Environment

Weaknesses
- IKEA’s rapid growth and worldwide of activities (centralized strategy)
- Keep the information flow to customers and stakeholders up-to date

Strengths
+ IKEA’s strong, and worldwide known brand
+ IKEA’s strong concept and vision
+ IKEA`s partnerships with suppliers (long- term and high quality)
+ Economies of scale

External Environment
Threats
- Growing number of retailers are offering low cost furniture
- The global economical crisis, drop in consuming by consumers

Opportunities
+ Continue developing (even) greener products
+ Increase presence in North American and Asian markets
+ Explore possibility of

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