Marketing Success of IKEA and Apple Inc. Case Study

This report explains the background of IKEA and Apple Inc. along with the market strategies used by the companies to gain success in the target market. It evaluates marketing strategies used by the company and sustained marketing success evidence as well.

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Contents
Introduction......................................................................................................................................1
IKEA Company Success..................................................................................................................1
Apple Company Success.................................................................................................................2
Marketing Success Evidence...........................................................................................................2
IKEA............................................................................................................................................2
Apple Inc.....................................................................................................................................3
Analysis and Explanation................................................................................................................3
IKEA............................................................................................................................................3
Apple Inc.....................................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
The purpose of this report is to provide brief information about the success of the two companies
that are IKEA and Apple Inc. The report explains background of both the cases and along with
the market strategies used by the companies to gain success in the target market. Marketing
strategies are very important for the business as it helps them in promoting the products and
services of the company are gaining success in the target market. Marketing is regarded as one of
the most important tool that helps the business in increasing their success rate by satisfying the
customers in the market. The case study of IKEA published in International Journal of Business
Knowledge and Innovation in Practice in the year 2013, explains the analysis of business
environment for the company along with the use of various marketing tools with the help of
which the company became competitive in the market. Moreover, the journal about success of
Apple Inc. published in International Journal of Economics and Finance in the year 2015 talks
about the success factors of the company in the external market. Further, the report evaluates
marketing strategies used by the company and sustained marketing success evidence as well.
More details about the report are discussed below:
IKEA Company Success
The initial case study of the company IKEA aptly explained the marketing strategies used by the
company such as SWOT analysis, target market segmentation, PESTLE etc. for the growth of
the company. IKEA is an organization based in Europe along with different parts of the world;
the company is into furnishing industry and successfully earned sustainable competitive
advantage in the industry. IKEA works with a motive to provide quality products to people at
low price (Hill 2017). The case study successfully explained the strategic position that they have
achieved using the Key Performance Indicators and complying with the long term goals of the
company as well. The reason for advantage of this organization is its clear objective and
activities presented in the market. As the company said that, they want to serve goods to the
people at low prices for which they organized their strategies and target market in such a way
that they can successfully work to achieve the same (Dolata 2017).

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Apple Company Success
Apple Inc. is an organization that is globally famous for its high quality product differentiation in
the market. The company operates its activities worldwide and works with a motive to provide
premium quality products at high prices to its customers in the target market. Until now, no
organization has become competent to match iPhones manufactured by Apple. The given case
study explained the success of the company’s new product launched in the market. There are
various factors for the success of the iPhones in the market; these factors are product uniqueness,
good market knowledge and synergy between production, technology and business proficiency
(Yoffie, and Cusumano 2015). The case clearly explained the success factors of the company and
the ways with the help of which they earned sustainable competitive advantage in the target
market. The company used various marketing tools and techniques to make decisions in the
market and attain success as well. The company Apple made the best use of market and earned
success as well, various marketing strategies were used by the organization to evaluate the
market potential as well.
Marketing Success Evidence
IKEA
Sustained marketing success of an organization can be clearly evaluated using the Key
Performance Indicators of the company. In the given case of IKEA earned success in the market
using its marketing expertise in the target market. The strengths of the company helped them to
achieve the key performance indicators as well. The KPIs helped the company to assess the
progress and attain the long term goals as well. The KPI of IKEA aimed to approve the suppliers
by IWAY. IWAY is IKEAs Way of Purchasing Home Furnishing Products, these guidelines
define the social and environmental requirements IKEA expects of its suppliers (Gillespie, and
Riddle 2015). It should be noted that the KPI acts as an evidence of the marketing performance
of the company. Similarly, the company had developed the KPI to achieve holding of their
product in the global market and increment in product development strategies as well. Further,
the consumer base of the company is strong evidence that shows the performance and growth of
the company in the external market. Company’s activity to increase the use of renewable

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resources helped them to produce more products than competitor firms in the target market
(Harapiak 2013).
Apple Inc.
Product development and market share captured by the company Apple is the biggest evidence
that clearly shows its success in the competitive market. The KPI measures the performance of
the company in the target market. Apple has trained more than 130000 workers in their
organization that shows the progressive growth of the company along with which, the company
initiated a supplier program for the growth and expansion of product in different international
markets. Sales and profits of the organization are the biggest evidence that shows the actual
growth of the company in the target market. Growth of the company can be clearly seen through
different business lines in which the company is entering; Apple Pay application helps the people
with online payment services. Expansion of the company in different streams apart from their
basic product line is the evidence of their growth in the external competitive market. The
technology resource used by the company helps them to get sustainable competitive advantage in
the target market (Capatina, and Draghescu 2015).
Analysis and Explanation
IKEA
The SWOT analysis is a marketing concept that clearly explains the capabilities of an
organization to succeed in the target market. IT also explains the resources available with the
organization that help them to succeed in the target market. Further, the marketing success of the
company through SWOT is discussed below:
Strength
 IKEA has strong international brand that attracts key consumers in the target market. The
brand is known for provide high quality products at low prices that helps them to attain
universal acceptance in international market (Jonsson, and Foss 2011).

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 Wide range of well-designed and good quality products helps the customers to choose
between varieties of products available with the company.
 The company also promotes responsible social and environmental regulations with all the
suppliers in order to use more renewable resources in the market (Weinstein, and
Winston 2016).
 Solid revenue growth is the biggest advantage that helps in increase the use of
technological resources in the company as well (Nenonen, and Storbacka 2018).
Weakness
 Increasing international expansion along with obsessive need off low cost products
makes it difficult for the organization to maintain the quality of products and serve it to
customers at low cost with product differentiation as well (Hultman, Johansson,
Wispeler, and Wolf 2017).
Opportunities
 Eco- friendly business conduct might help the organization attain greater customer base
when compared to competitors and attain optimum returns in price sensitive market.
 Increasing opportunities to grow in untapped international market of furniture (Wensley
2016).
Threats:
 Less new homeowners and economic recession might affect the overall sale of the
company IKEA.
Thus, it should be noted that the above mentioned analysis successfully helped the company to
analyse their internal as well at external market capabilities on the basis of which they can
successfully growth in the target market.

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Apple Inc.
As the fact is known to all that the company Apple is the only company that has attained such a
strong brand image in the competitive industry, so the below mentioned Porter’s Five Force
Analysis will successfully explain the marketing success of the company in the target market.
 Bargaining power of buyer: There is low bargaining power of buyer in the market as
there is no other organization that sells iOS software in their products. In addition, the
company has earned product differentiation in their market.
 Bargaining power of supplier: The Company has more than 200 stores worldwide
which helps the customers to easily attain the product from the market. Good terms with
suppliers help them to attain services at low prices as well. Resulting to which, it can be
said that there is low bargaining power of supplier (Grant 2016).
 Threat of new entrants: Apple is known for using innovative product technology that
makes it different from the competitors in the market. However, many companies are
trying to imitate the products served by the company but losing their significance.
 Threat of substitutes: There are fewer substitutes available for the products and services
served by Apple Inc.
 Industry Rivalry: There is medium industry rivalry as there is presence of very few
organizations that provide product differentiation to customers. Samsung is biggest
competitor of Apple but it provides low price products (Hill 2017).
Thus, it should be noted that with the use of available market features, the company Apple Inc.
attained success in the external market.
Conclusion
Thus, in the limelight of above mentioned events, the fact should be noted that the above
mentioned report successfully explained the marketing features with the help of which the
companies IKEA and Apple gained success in the target market. The report successfully
explained the marketing success of the company using various marketing theories as well. Both

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the companies have significantly used their available resources and capabilities and moulded
them in such a way to attain marketing success for the organization.

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References
Capatina, G. and Draghescu, F., 2015. Success Factors of New Product Launch: The Case of
iPhone Launch. International Journal of Economics and Finance, 7(5), p.61.
Dolata, U., 2017. Apple, Amazon, Google, Facebook, Microsoft: Market concentration-
competition-innovation strategies (No. 2017-01). Stuttgarter Beiträge zur Organisations-und
Innovationsforschung, SOI Discussion Paper.
Gillespie, K. and Riddle, L., 2015. Global marketing. UK: Routledge.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. Australia: John
Wiley & Sons.
Harapiak, C., 2013. IKEA's International Expansion. International Journal of Business
Knowledge and Innovation in Practice. 1(1), pp. 3-14.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
https://books.google.co.in/books/about/Manufacturing_Strategy.html?
id=SjpdDwAAQBAJ&printsec=frontcover&source=kp_read_button&redir_esc=y#v=onepage&
q&f=false
Hultman, J., Johansson, U., Wispeler, A. and Wolf, L., 2017. Exploring store format
development and its influence on store image and store clientele–the case of IKEA’s
development of an inner-city store format. The International Review of Retail, Distribution and
Consumer Research, 27(3), pp.227-240.

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Jonsson, A. and Foss, N.J., 2011. International expansion through flexible replication: Learning
from the internationalization experience of IKEA. Journal of International Business
Studies, 42(9), pp.1079-1102.
Nenonen, S. and Storbacka, K., 2018. Smash: using market shaping to design new strategies for
innovation, value creation, and growth. Emerald Publishing Limited.
Weinstein, A. and Winston, W., 2016. Defining your market: winning strategies for high-tech,
industrial, and service firms. UK: Routledge.
Wensley, R., 2016. The basics of marketing strategy. In The marketing book (pp. 75-107). UK:
Routledge.
Yoffie, D.B. and Cusumano, M.A., 2015. Strategy Rules: Five Timeless Lessons from Bill Gates,
Andy Grove, and Steve Jobs. New York: HarperBusiness.