Executive Summary The purpose of this report is to provide an analysis of IKEA’s process of internationalisation and success as a global brand. The analysis is based on the overview of IKEA’s business structure and company operations. Research for this report was conducted via newspaper articles, IKEA annual reports, online journals and related websites. The major findings of the report identified how IKEA’s profit levels and performance is constantly improving each year, their brand positioning of the company and consumer demand on its services and products.
Market entry approaches and strategy have also been discussed including how the company has been able to sustain its competitive advantage. Future plans and strategies in place …show more content…
Following the success of his first line of furniture, Ingvar published the first IKEA catalogue in 1951 and opened his first showroom in Sweden in 1953. (IKEA,2011) The true concept of the company’s creation of well-designed furniture at a very low price started in 1955 and three years later the world’s first IKEA store was opened.
The IKEA Company wanted to make sure that they offered not only low price items but quality made items as well so in 1961, the company started to implement quality testing in all its products. In 1963 the company saw an opportunity to expand and launched their first IKEA store outside of Sweden, in Oslo, Norway. Now IKEA stores can be found around the world in 301 locations. When Ingvar first started his company, he sold anything he could get his hands on. From selling fish, vegetable seeds and magazines to now furniture, household items, pillows, lighting and children toys. One of IKEA’s main strengths is that they are a very profitably company, in both its domestic and international branches. IKEA has strong ethical values integrated with its business strategy which include cost leadership and product differentiation. IKEA’s furniture design is based on their Swedish roots. Swedish furniture is light and fresh yet unpretentious. The warm welcoming Swedish style has become a model of simplicity, practicality, and informality that is now world .
Cite this Analysis of Ikea’s Process of Internationalisation & Succuss in the Retail Industry
Analysis of Ikea’s Process of Internationalisation & Succuss in the Retail Industry. (2018, Feb 05). Retrieved from https://graduateway.com/analysis-of-ikeas-process-of-internationalisation-succuss-in-the-retail-industry/