Global marketing management of Ikea's company

Résumé du document

Born in 1940, Ikea has been created by Ingvar Kamprad who wanted to build furniture's trade. The conception of Ikea began with the new design of furniture's, the kit system, the birth of the catalog and the showroom. New Ikea stores are open and flagship products are emerging as the chair and the library POÄNG Billy. Ikea sets up new important markets: USA, Italy, France, and United Kingdom.

IKEA is one of a rarely company which doesn't need to adapt its strategy depending of the country. The same catalog all around the world since 30 years except some few changes. Since the first store opened, 50 years later, and 255 stores, Ikea has a Turnover of 21 billions Euros, with 82% in Europe, 15% in north America, and 3% in Australia and Asia. Ikea's Success is thanks to the special position. Ikea became in 20 years a reference in the furniture trade. Ikea changed the furniture's market, even its concurrent: Conforama, But, Fly, and Alinea try to copy the strategy of Ikea.

Extraits

[...] For example, if you break a door, just to buy one Conclusion IKEA built its culture years after years with the same Swedish behavior, and it works very well today. IKEA is always up to date to the latest phenomenon, and has lots of consideration on several points. Have the best offer at the lower price thanks to a range of selected suppliers controlled up and down by IKEA, in the aim of keeping the best products quality and requirements on working conditions. IKEA's strategy doesn't seem to have fault, except on working conditions requirement, due to a willingness to have the lowest prices from the supplier. [...]

[...] They want to expand the company all around the world but reduce the number of suppliers and take the control of the supply chain. In fact, Ikea stands its competitors by offering a wide range of prices and, in the aim of a wider and more varied Customer. Such fare for relatively low prices for a maximum penetration market reflects the willingness of Ikea to maximizes its market share. To summarize, for over 60 years, IKEA works to get low prices for its products also buy cheaply as possible, building its own stores, selling furniture in flat packages that the customer up himself. [...]

[...] Quality is fundamental to IKEA. This is why it is so important that they will propose products at the lowest price that does not put into question their commitment to provide quality fair. Genuine social phenomenon, this channel is revolutionizing the furniture market last fifteen years. Combination of aesthetic and economic favors this buying frenzy. No low range, all the products are solid and well studied. Next, in its quest for suppliers to manufacture its products, the goal is to find IKEA suppliers, which can produce functional, aesthetic items of the best quality at the lowest price possible. [...]

[...] In fact, IKEA reduce its production costs, but also reduce the impact of the process of fabrication on the environment. IKEA want to control all stages from raw material to customers. Upstream Studies market and study of the customer's behavior provide to the central laboratory of IKEA in Sweden information to design new products. Then set the selling price based depending of the competition, the degree of product innovation, etc buying offices spread throughout the world is put in competition for exploring the best suppliers. [...]

[...] IKEA takes in general a policy of low prices in order to increase demand, since the target market is a price sensitive 3 market. Thus the demand is elastic and moves that's why IKEA adopt a penetration strategy to compete. Prices are fixed on average lower compared to other brands. Thus the objective is to achieve a significant volume of sales. We can see that the first priority of concurrence of IKEA is the price. Next, IKEA products must be functional and safe to use. [...]