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IKEA in the U.S.A.
How 'culture' in the U.S. may impact upon IKEA company and brand
People at IKEA are well-known for living on a slender means, working hard, and being innovative to maximize the use of limited resources. At IKEA, wasting resources is a grave sin. This has become a characteristic of the entire company. This culture of doing things is at the core of the company's approach of keeping low prices. However, IKEA does not compromise quality for the sake of costs. It has a global reputation for quality, safety that customers can trust, and prides itself in providing the appropriate quality in all situations (Daw, 2006). The company's product range is broad in various ways: the situation is the same in all its stores. The product line is wide, comprising of everything a customer will need to furnish a home. The style is wide; it provides just furniture but also includes smaller room fixtures, which could be bought at the same time (Gitman & McDaniel, 2009).
Customers are able to spend more time in the stores, and even if they do not want to make a purchase, they are free to walk around the outlets and they can come to make a purchase later. Many U.S. people associate IKEA with a healthy and fresh way of life. This lifestyle is reflected in IKEA's product range. The company works to ensure that materials and products are adapted to minimize any adverse impact on the...
is to appeal to the taste of U.S. consumers. The variety of items offered in the U.S. market satisfies customers' preferences. The showrooms have been arranged and designed to match the U.S.' style. IKEA has adopted a product strategy in line with the oriental design of attaining optimal success. It has introduced specific designs for U.S. New Year, as the U.S. clients prefer. Therefore, IKEA has encoded the local culture in its offerings by a new logo that is seen as conspicuous by the U.S. customers. As a result, this move has been well appreciated by the U.S. buyers (Abbing, 2010).
Price
Understanding the U.S. buyers preference for items tagged as affordable, IKEA has focused on low cost production; this approach has effectively attracted more customers. Initially, when IKEA entered the U.S. market, it focused on the high-class segment. However, it reduced its prices significantly when it realized the customer preference of affordable products (Grant, 2009). Therefore, it attracted more clients from all classes of income (Koggel, 2006).
Place
The element of distribution or place is crucial as it helps reach out to the customers. Because distribution is an indirect…
References
Abbing, E.R. (2010). Brand-driven Innovation: Strategies for development and design. Lausanne, Switzerland: AVA Academia.
Berger, P.L. & Huntington, S.P. (2012). Many globalizations: Cultural diversity in the contemporary world. Oxford: Oxford University Press.
Davis, J. (2010). Competitive success: How branding adds value. Chichester, West Sussex, U.K: John Wiley.
Daw, J. (2006). Cause-marketing for nonprofits: Partner for purpose, passion, and profits. Hoboken, NJ: Wiley.
The company sees tremendous potential in a number of global markets and intends to pursue geographic diversification as the primary means of growth. It is aided by globalization, which has allowed it to also diversify its supply chain. The ability of IKEA to enter and exit markets around the world, both as retailer and purchaser, has been facilitated by globalization. The eradication of trade barriers in particular has allowed
IKEA, one of the largest furniture retailers worldwide. This text provides a synopsis of the article and commentary on the company's product strategy and product range. IKEA was established in 1943 in Sweden by Ingvar Kamprad, originally as a mail order business. Five years after inception, Kamprad ventured into the home furnishing business, subsequently opening the first furniture showroom in 1949. At the time, the showroom earned recognition as the
It is also very possible that some questions will not be asked, if person interviewed does not know how to answer them, or does not want to answer such questions. For the beginning, a first section of questions wants to find out more about the subject of the interview, about the persons' background with the industry (Name, age, company and position, plus responsibility with the company). Also, the total experience of
The rising demand for convenience is also a very strong motivator for customers as is the demand for stylish but sustainable and eco-friendly products as well. All of these elements together work to further strength the company's position in the global do-it-yourself market. Threats The greatest threat is from competitors who are also selling do-it-yourself store concepts throughout North America and also working to create highly effective supply chains. There is
Organizational Culture IKEA Organizational Culture Strong and Weak Sides of Organizational Culture Impact of Internal and External Factors Leadership and Organizational Culture IKEA Subculture Values Employees and Organizational Structure IKEA Organizational Culture Every organization has a unique culture that dictates how things are done -- it defines the organization's social and psychological behavior. Though there is no universally agreed definition, organizational culture essentially refers to the values, beliefs, attitudes, assumptions, principles, habits, and customs shared by members of a
Executive Summary This report provides information on each of the following areas pertaining to IKEA’s organization, culture, ethical framework, revenue and so on. The following sections provide the relevant data: 1) Organization Background & Benchmarking 2)Organization Background, Ethics/Legal, and Current events 3) Marketing, Financials & Accounting 4) Organization Culture, People, and Diversity 5) Strategy and Planning Analysis—Organization Goals 6) SWOT analysis 7) Recommendations, 21st Century, and Moving Forward A brief summation of the separate sections is as follows: 1)