Seminar paper from the year 2017 in the subject Business economics -
Offline Marketing and Online Marketing, grade: 1,3, International School
of Management, Hamburg Campus, language: English, abstract: This case
study provides information about Ikea's growth strategy which is based
on a cost leadership with high degrees of standardization and only a few
local adaptations. Applying growth drivers, marketing mix and
internationalization strategy, the case gives profound insights into the
company's success and how it was achieved. Key value of the case
involves critical assessment of Ikea's internationalization and
recommendations to maintain growth. Outcome of the study was that Ikea
is dependent on certain growth drivers that include company values,
prices, product range, places of distribution and advertisement on the
internal side of the company and governmental actions, growth of the
population, mergers and sustainability on the external side of the
company. Ikea's growth strategy seems to be very successful.
Nevertheless, the company has to face several challenges regarding its
internationalization process. Through governmental regulations, too
superficial market research and different tastes of customers that lead
to a necessary adaptation to local circumstances, Ikea needs to avoid
being outperformed by its competitors.
