The paper "Individual Situation Analysis and Marketing Objectives Company: IKEA" is a perfect example of a case study on marketing. The furniture industry is one of the major sectors in the economy in Australia. This paper describes in-depth how IKEA can improve its marketing strategy by using strategic marketing to increase its market share in Australia. The paper takes into account a situational analysis, SWOT analysis, and marketing objective. The situational analysis discusses the internal and external environmental variables that are likely to affect the company in the market.
The SWOT analysis summarizes the strengths, weaknesses, opportunities, and threats as discussed in the situational analysis. Company background IKEA is the world’ s largest furniture retailer. It was founded in Sweden by Ingar Kamprad. It’ s privately owned and deals with readymade home furniture products (Kippenberger 1997, p. 33). The company is international and operates 343 stores in 38 countries. The company owns 256 stores in 26 countries while the others have been franchised. The company employs 127,000 people and has a net income of $2.7 billion. The company has a focus on reducing costs on its operations and therefore sells its furniture cheaply to the customers.
The showrooms of the company are also designed in such a way that they attract the customers who buy the furniture. They arrange the furniture to provide ideas to the customers for their kitchens, bedrooms, bathrooms and other places in the house. Current Market Situation Internal analysis This section deals with the company’ s internal environment that gives the company a competitive advantage over its competitors. Market Growth strategy The mission statement of any organization states the objectives and purposes of the organization and act as a guide to the staff in achieving the objectives.
Marketing is one of the key factors that support the mission, vision and growth strategies of a company. The furniture industry is very competitive due to the presence of many products in the market. IKEA has done intense marketing which has led to the recognition of its brand globally. It markets a lifestyle that everyone in the world recognizes. This has made the company achieve great success globally and therefore achieving the objectives of its mission. Products IKEA has done a lot in the area of product promotion in the past to ensure that it has a competitive advantage.
The products offered by the company are very cheap compared to what competitors offer (Howell 2006, p. 101). This is one of the reasons why many people like shopping at IKEA. The company also designs products that are beautiful and inexpensive. This is made possible by the company having low-cost suppliers located in different parts of the globe. Some of the products are also customized to sell in the local markets.
The company also boasts many stores in its supply chain and has plans to roll out more stores in the future. The company also does extensive promotion of its brand which is important for the company.