IKEAcasestudy
12页1、Table of Contents Page No.Executive Summary2Introduction and Summary 3Case Study AnalysisIKEAs success with its standardized products 4Adaptation strategy in Chinese market 6Young people of all ages 7Target Market 7Is IKEA destined to succeed in China 8How can IKEA adapt to local consumer behavior In order to be successful in China 9Conclusion 9Recommendation 10, 11Reference 12Executive SummaryBackgroundIKEA, the worlds largest home furnishings retail chain, was founded in 1943 by a Swedish entr
2、epreneur Ingvar Kamprad. IKEA offers standardized products worldwide that are Scandinavian in design worldwide. The unique idea of this famous brand is to offer the option of assembling products to customers. The design of the furniture is very modern and light as it is made of particleboard. The products are of contemporary design and function with the concept that is based on low price. High quality, convenience, affordability, consistency, functionality and good design are the essence of this
3、 world class home furnishing retailer.Challenges IKEA faced many challenges in terms of culture and business practices as well as socio-economic and political conditions in China. The biggest challenges were pricing, copycat producers and cheap labor cost for assembled furniture.AlternativesTo make the price more affordable for Chinese consumers IKEA has developed manufacturing units in China and collects raw materials locally. Due to country specific environment IKEA chose franchising in China.
4、 Because of cheap labor cost of Chinese assembled furniture IKEA offers reasonable fee-based assembling services. IKEA has built its stores near public transportation lines inside cities since only 20% of customers own cars in Shanghai. Recommendations IKEA needs to find more local suppliers to keep price lower. To understand local culture and purchasing habit, the company should carry out extensive market research. To attract more middleclass consumer huge adaptation is necessary. Extensive tra
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