Sunday, April 21, 2019
IKEA's Global Strategy - Furnishing the World Essay
IKEAs Global Strategy - Furnishing the World - experiment ExampleThe entrance of IKEA into Germany has been unbeaten because of low prices of IKEAs products. Although Germany was a mature market and various ceremonious retailers were attracting the major consumer segments, still IKEA enlarged the market and changed the competitive position because even the set up retailers adopted the mandate of IKEA in their own operations. In Germany, unlike traditional retail stores, IKEA introduced lean organizational strategies through and through which it intensify responsibilities and freedom of employees. These strategies energized employees by increasing their motivation level. Canadian market was also a mature market, however, IKEA through its full publicizing causal agency, positive word-of-mouth and newly recruited local suppliers, energized Canadian market and successfully established its position. Moreover, in Canada, lean organizational practices were welcomed. In the huge and m ature market of U.S. IKEA established it position by catering to the local taste and tapping into local expertise through franchising, acquisitions and joint venture. Therefore, IKEAs practices insisted the competitors to reconsider their set strategies, advertising strategies, product features and management styles. It has analyzed from case study, that most of the markets which IKEA has targeted, word-of-mouth remained the best effective advertising strategy of the company however, in the U.S. market more focused media-advertising was required. IKEA through its TV advertising campaign touched the personality, life style and emotions of people and encouraged the sales of company. Through this campaign IKEA actually changed the article of furniture purchasing behavior of the consumers in the United States. The series of eight TV advertising spots was have in such a way that every consumer in the U.S. could associate himself/herself with one of the series. Therefore, after this cam paign, consumers started buying furniture not only to furnish their living space but as a motion of their lifestyle, personality and emotions. The campaign benefited IKEA because other companies in the U.S. were spending huge in advertising to stay in the business, whereas, by changing the behavior of consumers towards furniture, IKEA grew its customer base.