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Transcript of IKEA CASESTUDY
North American Market By: Anita Ivill, Linda Howie &
Melanie Scott-Smith WHO: are IKEA? IKEA is the world’s largest furnishings retail chain, which follows a standardised product range that includes an assortment of products from plant pots, to sofas, glasses and even wallpaper. WHAT: is IKEA’s mission? IKEA’s mission is to “offer a wide range of home furnishing products of good design and function at low prices that majority of the population can afford to buy..'' HOW: many countries does IKEA now operate in? According to the case study IKEA operates in 37 countries, today that figure have risen to 40. WHEN: Did IKEA Enter the
North American market?? IKEA's expansion into the North American started in 1976 and they opened their first American store in 1985 on the East coast IKEA was first established in Sweden in 1943 WHERE: and when was IKEA established? WHY: Did IKEA not succeed in
the American market in their
first attempt? What has allowed IKEA to be successful with relatively standardized product and product line in a buisness with strong cultural influence? Case Study: Question 1 Did the adaptions to this strategy in the North American market constitute a defeat to its approach?? Case Study: Question 2 Which features of the “young people of all ages” are universal and can be exploited by a global/regional strategy? Is Ikea destined to succeed everywhere it cares to establish itself? Product
Promotion Thank you! Standardised product design, identical core range worldwide.
Items to be assembled by customer.
Constant low price image.
Prototype communications model to be followed by ALL stores.
Media varied between markets Who in the class has been to IKEA? Why did you go there? IKEA Advert Did not research market
needed to customise products to suit American culture Bonus Question Case Study: Question 3 Flat packed packaging
Products made from light weight materials
Mass production from outsourcing The kitchen cupboards not being big enough for large pizza plates
Vases being purchased as drinking glasses
Dresser draws not being big enough