Business / Ikea Case Study
Ikea Case Study
Autor: Caspergirl 05 May 2012
Words: 1978 | Pages: 8
1. Has IKEA taken a standardization approach or an adaptation approach in its markets around the world? Do you think the company’s approach is the right one for the future? Explain
IKEA main approach is standardization with a small degree of an adaptation approach. They use a global strategy which is when they offer the same products with the same marketing strategy in national markets. (Wild). It is the basis of standardization which is keeping everything the same in all markets. IKEA is known to have their stores painted in the same colors and the arrangement of the merchandise the same. All the furniture has the name “Ivar” or “Sten” and models numbers. There stores are basically self-service with customers looking and writing down the names of the merchandise, pulling it off the shelves and building it at home. The main benefit of global strategy is the cost saving to produce the same product and market standardization which they feel will result in cost savings for the customer and that is there plan. Companies that follow global strategy can take advantage of scale and location economies because they produce inventories of products or components in a few locations. The research and development is limited to a few areas which causes a problem because the company can overlook the important differences that the buyer is looking for in different market. There is a small degree of adaptation which in the ability to change the product to a specific area or region that so it will be useful to the market in which is it being sold. An example of this is in the instance of Central and European emerging markets. These emerging markets have low purchasing power so the stores offer a smaller selection and some of the furniture was design to fit into smaller areas. They adjusted the merchandise based on what the consumer can use but it also took away from the selection. “IKEA offers the same product range in all countries--8,000 to 10,000 products depending on t...