IKEA

IKEA

IKEA

Introduction

IKEA is a Swedish furnishings company which has a unique design and applied a customary internationalization strategy as centralisation. Certain marketers acquiesce that the standardized trading scheme which focuses on the similarities among heritage and evolves international marketing plans eliminating the need of heritage can be used for creating powerful global emblems and increasing enterprise globally without any problems. The marketers employ this approach as a result of they see the world as a one large market in which difference between cultures have diminished and consumers have developed similar needs and want independent of location. However, there has been a long debate on the issue why many marketers try to change the approach of internationalization from standardization to adaptation which focuses on cultural uniqueness for each local market.

In this term paper will talk about “How should IKEA adapt its conservative strategy as regardless of heritage boundaries, How appealing is Brazil for IKEA, and which market application modes do you suggest, and why?”furthermore, this paper furthermore focusing on the advertising scheme related to a cross culture as it is an significant appearance for IKEA in the international market so IKEA need to understand the environment of persons in distinction countries.

Overview of case study

From the case study of IKEA, IKEA utilised franchising as an application method for increasing to Brazilian market. It brings some troubles to IKEA encompassing the difficulty of heritage sensitivity, demographic trend and many more. With this mode, even if IKEA allows franchisees to design the rest of product mix to fit domestic market, the centralized head office still involved totally in selection processes. To solve the above mentioned difficulty, headquarter should permit the local partner to make a decision for products sold in its market since the company knows more about customer demand. The extensive training and operational support should be managed by the franchisees. Additionally, the design of all catalogues and promotional advertising should be transferred to be the duty of local franchisee because it is more easier to meet the local demand, since culture including the differences of values and attitudes, languages, religions, aesthetics, dietary preferences and education is a reasonable factor to be examined in relation to build IKEA internationally.

Advertising and Cultural affect to IKEA market

To expand globally by using advertisement, there is no universal meaning of an advertisement across borders. Mooij (1991) agreed that 'Advertising, to be effective, must derive from and be part of a culture sharing the language and values of the target audiences.' The culture analysis with Hofstede's cultural dimensions helps to study the influence of culture on global advertising. People in different cultures show different orientations toward power distance, individualism and collectivism, masculinity, uncertainty avoidance and Confucian work dynamism (Hofstede, 1996). Each factor influence advertising in term of culture. This paper will examine focusing on 3 dimensions as below:

Firstly, power distance refers to the degree of inequality among people which is viewed as being acceptable. People in high-power distance culture expect clear directions from authority in relation to ...