Effective Global Marketing for IKEA

Added on -2020-02-05

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UniversityGlobal MarketingByDateNameAuthor’s Note:
Global MarketingTable of ContentsIntroduction...........................................................................................................................................3Porter's five forces analysis for Sweden................................................................................................4New entrance.....................................................................................................................................4Bargaining Power of Supplier............................................................................................................4Competitive rivalry............................................................................................................................4The bargaining power of the buyers..................................................................................................5Threats of a the substitute..................................................................................................................5PESTEL for US Market:........................................................................................................................5Political.............................................................................................................................................5Economic...........................................................................................................................................6Social.................................................................................................................................................6Technology........................................................................................................................................6Environmental...................................................................................................................................6Legal..................................................................................................................................................6SWOT Analysis of US Market..............................................................................................................7Strengths............................................................................................................................................7Weakness...........................................................................................................................................7Opportunities.....................................................................................................................................7Threats...............................................................................................................................................8Porter’s diamond analysis for both countries.........................................................................................8Describe all three marketing theories....................................................................................................9Choose which one applies to the chosen company............................................................................9Describe STP and branding for the marketing strategy of the company suggestions for the company’s marketing strategy...............................................................................................................................10Segmentation...................................................................................................................................10Targeting.........................................................................................................................................11Positioning.......................................................................................................................................12Conclusion...........................................................................................................................................13References...........................................................................................................................................14Page 2 of 14Author’s Note:
Global MarketingIntroductionIKEA is one of the largest furniture retailers which was established in 1943. In addition, IKEA is offering well-designed and furnishing products at reasonable price to their customers. One of the main mission of IKEA is to provide good products at a low price to thecustomers. On the other hand, in this competitive world, each and every organization requiresproper marketing strategy to sustain. In other sense, the global marketing is one of the major marketing strategies which is implemented by many companies. There are various types of theories, and business models will be discussed in this paper for effective global marketing for IKEA. In addition, these models include the significance of global marketing policies. Besides that, with the help of effective global marketing, an organization can expand the business without any conflict situation. Although, how IKEA successfully implement global marketing strategy through proper digital business perspective will be discussed in this paper.Moreover, this paper also includes Porter’s five force theory, PESTEL analysis, SWOT analysis and STP (segmentation, marketing and positioning) for more improved discussion. Thus, this paper also provides a recommendation for the future objectives and goal accomplishment for IKEA. Moreover, the management of IKEA will get a clear way to proceed in the global market with available perspective (Schiavo-Campo and Sundaram, 2007). Page 3 of 14Author’s Note:
Global MarketingPorter's five forces analysis for SwedenNew entranceAs per the study, IKEA has an exclusive model and brand name. It is very much difficult to copy the techniques of IKEA. In the furniture industry when other furniture companies start its journey with a low-cost policy wide-ranging of home delivery conflicting with the non-home delivery method of IKEA in Sweden. It has no small outlets in the small towns that make a great opportunity for the newcomer company to open shops in the small towns. A new competitor tries to enter in those small towns with low-cost plans with setting up small outlets. A new competitor may attract new consumers. Bargaining Power of SupplierYearly summary suggested that the IKEA had 1074 suppliers among 55 countries in the year 2012. Many of the suppliers are operated by the IKEA and where IKEA compete with others in the industry of furniture. IKEA group had a unique modest power. Low price is helping to gain the profit that has an effect on the profit margin. It also affects the price of labour than the price of raw materials. Bargaining ability of the suppliers could be a matter of threat for the profit of a specific company. IKEA group is fully aware of these. IKEA enterprise alwaystries to maintain a good relation to the suppliers in Sweden. IKEA group guaranteed that the IKEA benefits and the supplier’s benefits both are interdependent and connected with an agreement(Royka, 2006).Competitive rivalryIKEA is very much comfortable withits market competitor in Sweden.IKEA maintain the competitive edgeamong rivals. IKEA grew up in thePage 4 of 14Author’s Note:

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