IKEA IN AUSTRALIA

IKEA in Australia



IKEA in Australia

Introduction

IKEA is the leading manufacturing firm, engaged in the manufacturing of furniture. Since its inception, IKEA has maintained a distinctive position among its competitors, thus enjoying an overwhelming competitive advantage. It has always enjoyed a formidable position in this particular sector. Now, as every organisation is planning to expand its operations, the top management at IKEA has realised the necessity and importance of expanding its business in other countries. This paper presents a feasibility report, suggesting possibilities for IKEA to launch a branch office or we can say a franchise in Australia to cater to the needs of the local consumers. Mergers and acquisitions have taken the business world by storm, but IKEA has successfully managed to survive in these crunch times (Ansoff, 2005, 35).

IKEA Environment Analysis

Corporate Culture

Despite its Swedish roots, IKEA is owned and operated by a complex series of run not-for-profit and for-profit companies. The IKEA corporate structure is divided into two main parts: operations and franchising. Most of the operations of IKEA, including the management of the storage, the design and manufacture of its furniture, and purchasing and supply functions are overseen by INGKA Holding, private, for-profit Dutch company. The 235 IKEA franchises in 36 countries are operated by INGKA Holding (Ansoff, 2005, 36). The remaining 30 stores are run by franchisees outside the INGKA Holding.

A unique design

IKEA products fully embody the concept design for the public --- cheap, durable, simple, and natural, IKEA uses plastics, laminates and pine furniture as basic materials, through the careful selection of colours and materials with their products not only modern, beautiful, and practical, environmental protection; both people-oriented, and highlight the regional characteristics. These products provide IKEA to maximise limited resources to be closely linked to the use of the virtues, can easily cause consumer recognition and goodwill (Applbaum, 2004, 98).

The full range

In the IKEA store, one can get the sofas, beds, tables, chairs, textiles, kitchen utensils, floors, carpets, kitchen furniture, bathroom supplies, lamps and plants and other household items everything. Moreover, the IKEA's stylish products are meant to satisfy the customer's needs.

Open sales

In 1965, IKEA opened outlets in Stockholm, which attracted thousands of people. Later, IKEA decided to open the warehouse for customers to meet the increasing needs of the customers. This concept of open-way selling has since become an important ingredient of IKEA's marketing strategy. Open sale of products, provides the consumers, an opportunity to look and check the durability and quality of the product; thus greatly reducing the transportation costs, which even led to the revolution in furniture retail and manufacturing sectors, but also greatly promote the IKEA's brand products the world over, especially in Australia (Applbaum, 2004, 99).

Low-priced market

IKEA's business objective is, "to provide a wide range of beautiful and practical, ordinary people can afford household goods”. For this purpose, IKEA needs to reduce production costs and encourage the use of optional flat packaging and shopping; it is also possible through bulk purchases of lower ...