The paper “ IKEA’ s Development - Mission, Vision and Strategic Objectives, Environmental, SWOT and Competitor Analysis” is an excellent option for a case study on marketing. IKEA is a multinational corporation that mainly specializes in the production and sale of furniture. It is profitable although it only operates in developing countries. It is the largest company that uses wood for its manufacturing process. IKEA only operates in countries with economies and political environment that promotes the growth and development of business. The industry is quite attractive and it has a lot of competitors.
IKEA is the market leader in the industry although it is facing a lot of completion from companies such as ASDA, Tesco and Wal-mart which are also multinational corporations dealing with a wide range of products. The company is innovative and technology is used for the development of high-quality goods. Technology and completion in the market are the major forces of change in the industry. The standardized marketing strategy is used by the company to deal with competition and meeting the needs of the customers. IKEA is financially stable and it has a good brand image among the customers.
The low pricing strategy, as well as product diversification, has contributed to the growth and development of the company. Negative publicity in some of the countries is one of the main weaknesses of IKEA. This is after it was involved in the use of forced labor and biased advertisements. The biased advertisements have impacted negatively the operations of the company in some of the countries including Russia. Failure to satisfy the customers in some of the countries has also led to some criticism. IKEA has a lot of opportunities in developing countries where it has not invested.
An opportunity also exists in the company in the grocery retail industry which is increasingly experiencing a high level of growth. Competition is a major threat facing the IKEA in the countries that operate in. The company has adequate human and financial resources that have contributed to its growth and development. In terms of the marketing mix strategies, IKEA uses a low pricing strategy. The products of IKEA are of high quality and standards with most of the stores being located in inaccessible locations.
The employees, as well as the customers, are highly valued due to the contributions that they bring to the company. The processes are also aimed at meeting the needs of the customers and ensuring that the goal of customer satisfaction is achieved. Various forms of media are used by the company for carrying out its advertisements including the internet. A high number of people usually visit the website of IKEA every year and receives about 600 million visitors.
It is recommended that the company should change its methods used for marketing including the standardized process. The company should also consider investing in developing countries due to the high potential. The low pricing strategy should be maintained but the company should also consider finding the other means of attracting customers from different segments. Continuous improvements in the quality of the products of the company should be carried out in order to satisfy the needs of the customers.
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