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Ikea Recommendation Free Essays - Free Essay …

Conclusion
This case study shows the importance and influence of vision within a company. Ingvar Kamprad’s original vision has provided IKEA with a clear set of goals and principles that have contributed enormously to the success of the company. His vision to provide home furnishings of good design and function at prices so low that the majority of people could afford them has led to a company culture which necessitates the best practice in not only the design of its products but the design of the company structure and its systems.

Conclusion
This case study shows the importance and influence of vision within a company. Ingvar Kamprad’s original vision has provided IKEA with a clear set of goals and principles that have contributed enormously to the success of the company. His vision to provide home furnishings of good design and function at prices so low that the majority of people could afford them has led to a company culture which necessitates the best practice in not only the design of its products but the design of the company structure and its systems.

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The author will analyze the pricing strategy using links available at IKEA student webpage (How IKEA creates its low prices, IKEA products are manufactured all over the world) and will provide an overview on how IKEA is able to achieve low prices.



Price – In terms of price, the author will analyze IKEA’s pricing strategy to see what kind of pricing strategy IKEA uses such as premium pricing or economy pricing, promotional pricing or value pricing?

IKEA Case Study Essay - 1440 Words


- Several attractive aspects to invest in the area of furniture industry in Brazilian market:
- Furniture market in Brazil is attractively due to a big value of imported furniture and it is continues growing
- Labor cost cheaper than Europe and America
- Most of Brazilian furniture manufacturers are small and family-owned companies
- large market share for foreign investors to enter in Brazilian furniture manufacturing
- With trade liberalization in 1990, Brazilian trade system changed to be more open and competitive
........
SO MANY
International Strategy
-- From the centralized strategic direction through franchising, it causes certain difficulties:
- complexity of logistics system
- the difficulty to respond national needs and cultural issues
- the uncontrollable franchisees, and the emerging demographic trends

-- Internationalization of IKEA strategy needs to be balanced between country level autonomy and centralized system


IKEA Mode of Entry
All IKEA’s stores in foreign countries are managed under international franchising

Franchising is a special form of licensing:

- licensor authorises the licensee to utilize its operating systems,
logos, brand names and trademarks in return for a loyalty payment
- franchisee needs to supply capital, personal involvement and local
market knowledge”

As IKEA has so much experience in setting up franchise contracts, it seems sensible to apply the same when coming to Brazil

The drawbacks of setting up Franchising in Brazil are not too high and IKEA could still be very successful in such a market
Based on the information gathered in this work, a relatively more complex but even more successful mode of entry can be recommended

Due to Brazil’s endowment factors and government economic stimulus package to attract new investments, IKEA can greater benefit from entering the market through Foreign Direct Investment via than from International Franchising

By using FDI as a Strategy, IKEA can acquire national resources and access other South American markets

FDI will occur when three conditions - Ownership, Location and Internalisation - are satisfied

By matching IKEA’s Swot analysis and all the other information gathered in this work, it is possible to observe that IKEA enjoys all three advantages in competing in Brazil against local fi

Competitor
Recommendations

Conclusion

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Strategic Management Ikea Analysis Essay - Paper Topics


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