International Operations of IKEA

Executive Summary

With the growing concept of globalization, businesses are now expanding and more marketing strategies are needed to introduce the product across the borders. Hence, marketing has taken the shape of science. Effective marketing strategies are the criteria for any company's successful survival in the competitive world.

To study international operations in details, a case study of IKEA is presented which is pioneer in furniture and home appliances. The report has been prepared to study the processes and strategies, such as standardization, adoption, innovation, and ethical and social issues. While the report considers IKEA's overall strategies, it also focuses on control and evaluation system for marketing performance. T

he study analyzes how IKEA has been able to place itself in the leading companies of the furniture through its market segmentation and evaluation systems. The report also shows company's continuous efforts to improve its performance in the evolving market conditions through adopting new product development innovation. With this, as the company is fully aware of the social problems, its contribution towards the improvement of the society and especially the children is also highlighted in the report.

Introduction4

Standardization vs. Adaptation Strategies of IKEA5

Managing Innovation6

Channel and Sales Management Strategies7

Ethical and Social Issues9

Control and Evaluation Methods10

References12

International Operations of IKEA

Introduction

In the world of technology when everybody talks about globalization, companies must have to formulate outstanding strategies for internationalization. However, it requires carefully and meticulously designed management and marketing strategies as the market poses strength and weaknesses to the new entries. Buyers, suppliers, competitive rivalry and the threats to substitute are the players of the international market which m7ust be studied careful to understand international operations (Baek, 2004).

The success of any company depends upon how well these strategies have been designed and implemented. To understand the term of International operations and al the strategies encompassed within its spheres as case study of IKEA id presented (McGoldrick, 1992). The name of IKEA, Swedish company, is recognized as the name of excellence in the manufacture of furniture. It has its own special ways of selling furniture with more than 250 stores in almost every country of the world (Burt & Carralero-Encinas, 2000).

Started in 1950, Ingvar Kamprad traded in furniture in the local market. Gaining big name there, he expanded his business in China and Italy and then the journey started which never stopped (Burt & Mavrommatis, 2006). The essay sheds light on the standardization and adaptation strategies, how new product is developed and managed in the market, channel and sales management strategies, ethical and social issues control and some recommendations on the evaluation methods (Business Week, 2005).

Standardization vs. Adaptation Strategies of IKEA

Over the last twenty five years, IKEA has expanded itself internationally. IKEA started its sale in European countries as well as in the United States of America. It is very important for the company to study the living styles of the foreign country (Cox & Britain, 2004). A careful study of the aesthetics helps the company to manufacture the product according ...