Ikea Marketing Case Essay

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International Marketing Decisions ESCP Europe London Campus CASE STUDY #1 IKEA GEROMETTA Matteo, LAVIDALLE Edouard, MAYER Clara, MOIN Hélène, NARANG Skand, NAZARIO Giulia, SPEIDEL Christian MF WHAT ARE THE FACTORS WHICH MAKE EXPANSION ABROAD IN RETAILING DIFFICULT? Legislative barriers Suppliers & product availability Timing Political framework Competitors Taxes Cultural barriers Expansion abroad Internal factors Group 5B – IKEA Case Study 2 WHAT HAS MADE IT POSSIBLE FOR IKEA TO SUCCEED INTERNATIONALLY? Several key elements helped IKEA expand internationally Organizational factors Presence of the founder and flat structure Knowledge sharing Entrepreneurial culture Structure, tax system Strong commitment and clear mission statement Financial structure Conservative approach No pressure to expand Packaging, easy to move materials Emotional impact on customers Clients involved in assembly “Swedish factor” Targeting, design at low cost Group 5B – IKEA Case Study 3 EVALUATION OF IKEA’S MARKET ENTRY STRATEGY SWOT ANALYSIS STRENGHTS • • • • IKEA brand Retail model High Level of Standardization Strong Corporate Culture • • • OPPORTUNITIES Emerging markets potential (e.g. India) Online sales Culture of Innovation WEAKNESSES • • • IKEA • • THREATS Local competition and tastes Other channels competition (e.g. Amazon) 78% sales in a mature market Lack of flexibility/ site suitability Product Line based on standardization Group 5B – IKEA Case Study 4 EVALUATION OF IKEA’S MARKET ENTRY STRATEGY “BRING A LITTLE BIT OF SWEDEN TO THE WORLD” Cost reduction Global strategy Transnational strategy International strategy Multidomestic strategy Local responsiveness Hill, C., Jones, G. & Galvin, P. (2004). Strategic management: an integrated approach. (5th edition)

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