IKEA Analysis Report

IKEA Analysis Report

Introduction

IKEA is one of the best private furniture based companies in the world which started in a small village of Agunnaryd in Sweden. A company which has the experience of working for more than 6 decades around the globe, which currently is operating in 40 countries around. IKEA is a company which has always focused itself towards creating a better future for the people by producing reliable furniture at a low cost. The basic concept of the company is based on southern Sweden which has thin soil and poor people and they use their hard work to survive. The genius behind the company made sure that all these values were transferred to the company and its core values were designed around the basic inherited values.

IKEA's Marketing

In the marketing aspect, the product deals with the conditions of the original goods and services. It also deals that how the product pertinent to the final users' needs and wants. Product policy in the international market contains three different strategies one of that is Standardization of the product - the company introduces foreign unchanged product. This behavior makes sense when the product because of its nature, is in various markets a similar utility. The use of this strategy is convenient and less expensive. IKEA is implementing the said policy for marketing its goods and services (Pride, Hughes & Kapoor, 2012).

When we talk about the foreign unchanged product we can see that IKEA has its strandardize products across the globe for this very purpose they send their experts from all the field whether its operations or deisgn to the country they are starting their function. These engineering and designers then help the locals to learn the standard set by IKEA and they also teach them the various methods which will help them to standardize their product.

Another marketing strategy which is implemented at IKEA includes that online marketing medium. IKEA is using the social media network which has not only helped them to focus more precisely on their target market, but it has also helped the organization to develop those methods which can help the complete to produce quality product. An online feedback system helps the company to get appropriate from its existing and potential customer who helps them to change the procedure of production for better quality and results. The use of E-commerce has greatly influenced the customers of the organization. IKEA brands are often associated with the words: innovative, inexpensive & stylish. Last year, IKEA initiated the Facebook Showroom Campaign. IKEA hahas successfully planned an outstanding innovative strategy for it products by leveraging the free Facebook platform, particularly, the comments and photo tagging practicality, to produce a big brand buzz (Edvardsson & Enquist, 2002).

E-commerce must be an integral part of digital strategy of IKEA's and must be the next big offering from IKEA. The following are some rationales why:

Current in-store customer experience is laborious

Digital channel makes the customer powerful

IKEA shoppers are cult-like

Current digital customer touch points must be ...