case study #2

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Apr 30, 2024

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1 Case Study #2 IKEA Marc Butts-Jones Saint Leo University– Saint Leo Course Name: GBA-440-CA01 Professor Andrew Gold

2 Case study #2 IKEA has a standardized approach to marketing internationally, which is quite impressive. The business has a strong and recognizable brand identity that is known worldwide. The product selection of IKEA remains consistent across different countries, with only slight adjustments made to cater to local preferences. It's clear that IKEA's strategy has paid off, considering its remarkable growth and reputation as a global powerhouse. Conducting market research is crucial before venturing into a new market. However, IKEA's decision to enter the China market proved to be a smart move due to the thriving economy of China. China is a rapidly growing economy, making it a great opportunity for business expansion. Taking advantage of a growing market can help businesses thrive. Therefore, IKEA's expansion into China proved to be a success, even without the utilization of market research or other scientific methods of analysis. IKEA's marketing strategy is centered around standardization across the globe. The company maintains a strong and recognizable brand identity that is easily recognizable worldwide. The product selections in each country's IKEA store are quite similar to one another, with slight adjustments to cater to customers' preferences. IKEA's success can be attributed to the effective implementation of a strategy that has made it one of the most renowned and recognized brands globally. Since opening their first store in Shanghai in 1998, IKEA has experienced remarkable

3 success in China. In late 2011, CEO Mikael Ohlssen noted that sales in China were growing at a faster rate than the corporation as a whole. IKEA has made changes to the store's structure and the way products are displayed, while still offering the same products globally. Exploring the pricing of different home solutions and considering the impact of regional economic and cultural variations. IKEA was initially perceived as too costly for their target demographic in China. While many Americans see IKEA as a stylish and affordable option, the Chinese young professionals, who were the intended customers, felt that the prices were too steep. IKEA is seen as a popular choice among the younger crowd in Shanghai due to its ability to adapt to customer needs and make pricing more affordable. IKEA stores are designed to showcase their products in various practical settings, as you might remember if you've ever been to one. The company made adjustments to the design to cater to the preferences of college students, particularly those from China, who are accustomed to different types of housing compared to Europe. While Kamprad's visionary concept played a significant role, IKEA's remarkable success can be attributed to its adaptability in different markets.

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4 References Chu, V., Girdhar, A., & Sood, R. (2013, December 6). How IKEA adapted its strategies to expand and become profitable in China. Business Today . https://www.businesstoday.in/magazine/lbs-case-study/story/how-ikea-adapted-its- strategies-to-expand-in-china-132642-2013-07-06 Guillén, S. (2024, January 17). IKEA’s Localization Strategy: A Masterclass in Global Expansion . Accelingo. https://www.accelingo.com/ikeas-localization-strategy/ The effective marketing strategy of IKEA . (n.d.). https://www.brandcredential.com/post/the- effective-marketing-strategy-of-ikea

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