The basic business strategy of IKEA is! SS To offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them!” . The following point is to describe how IKEA has adapted its marketing strategy to take advantage of globalization and further develop their . Focus your discussion on raw material, product, price, distribution, promotion, and service. Raw material- – Competitive advantage in design and organization – No competitive advantage in the production of raw materials -Use organizational skills to develop lowest cost suppliers of raw and semi finished goods from all over the world – by constantly working with suppliers and value added facilities Ikea streamlines transactions, increases efficiency and as a result get the cheapest price. Product- All products are designed in Sweden. – Because IKEA has a competitive advantage in design, all design is done at IKEA Sweden.
After they are designed, the product, or even parts of the products, are contracted out to the cheapest producer. – IKEA further reduces overhead through a standardized product strategy with an identical assortment around the world. Price- Ikea offers prices that are 30 to 50 percent lower than fully assembled competing products. -large quantity purchasing – low cost logistics -low cost, suburban store locations – and DIY marketing Distribution- – IKEA has built its own distribution networks. Buying centers”^3 warehouse or store “^3 store – When purchased from store, consumer takes responsibility for transport Promotion- – centered on catalog, and word of mouth – attention getting promotional efforts; media varies depending on market – Target audience young, highly educated, liberal cultural values, white-collar, and not concerned with status symbols; this group is similar internationally Service- -Little customer assistance -customer chooses, transports, and assembles products.