Strategic Marketing Management Report: Ikea's Global Business Strategy

This report provides a comprehensive analysis of Ikea's strategic marketing management, focusing on the company's expansion into the Asian market with its Billy bookcase. The report begins with an executive summary highlighting Ikea's success and the challenges of international expansion, including market competition and cultural differences. It then delves into the role of strategic management, exploring how Ikea attains a competitive advantage through its unique product design, value-based pricing, and integrated supply chain. The report examines the 4Ps of marketing mix (product, price, place, and promotion) and its link with corporate strategy. It further analyzes the strategic marketing process, models like PEST and product life cycle, and strategic positioning. The report also explores growth opportunities in the market, marketing strategy options, and strategic marketing objectives. It concludes with an analysis of the impact of external factors, internal strengths and weaknesses, and proposed strategic marketing responses, offering recommendations for Ikea's success in the global market.

Running Head: STRATEGIC MARKETING MANAGEMENT
STRATEGIC MARKETING MANAGEMENT
Name of the Student:
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Author Note:

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Executive summary
Ikea is the most successful customise furniture manufacturing company across the world. The
company is highly popular for its unique design and customer friendly product ranges and
pricing. Billy bookcase is the most successful product of Ikea and the company now decides to
expand its business in the Asian market with the Billy bookcase. However, there are some
barriers like competitive nature of the market, cultural difference and over-inteference of the
government. In this regard, it is very important for Ikea to choose its marketing strategies
properly. This report guides Ikea to get a clear insights of strategic marketing process and
measures so that it will be a success for Ikea in the international business.

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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................5
AC 1.1 Role of strategic management in Ikea.............................................................................5
Attaining competitive advantage in the international market..................................................7
Maintaining balance with the external factors.........................................................................8
Harnessing customer satisfaction with the product.................................................................8
Setting better organisational objectives...................................................................................9
AC 1.2 Process involved in strategic marketing..........................................................................9
Analysing the market.............................................................................................................10
Retrieving information regarding the target market..............................................................10
Establishing a strong marketing mix process........................................................................11
Emphasising on customer satisfaction...................................................................................11
1.3 Link between strategic marketing and corporate strategy...................................................11
AC 2.1 Values of the models used in strategic marketing planning..........................................12
PEST model for strategic market planning............................................................................12
Product life cycle model........................................................................................................14
2.2 Link between strategic positioning and marketing tactics...................................................15
2.3 Merits of relationship marketing.........................................................................................15
Task 2.............................................................................................................................................16
3.1 Techniques for growth opportunities in the market.............................................................16
3.2 Marketing strategy options..................................................................................................19
Increase market presence.......................................................................................................21
Set up a brand value in the new market.................................................................................21
Design effective promotional measures.................................................................................21
3.3 Appropriate strategic marketing objectives.........................................................................22
4.1 Impact of changes in the external environment...................................................................23
Technological factor..............................................................................................................23
Social factor...........................................................................................................................23
Legal factor............................................................................................................................24
Globalisation..........................................................................................................................24
4.2 Internal analysis for strengths and weaknesses...................................................................24
4.3 Proposed strategic marketing responses..............................................................................25

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Set a product line as per the consumer needs........................................................................25
Design creative marketing strategy.......................................................................................26
Good relationship with the respective government...............................................................26
Recommendation.......................................................................................................................26
Conclusion.....................................................................................................................................26
Reference.......................................................................................................................................28

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Introduction
Ikea is considered to be one of the popular ready-to-assemble furniture manufacturing
multinational company that offers kitchen appliances, home accessories and other home furniture
services to the customers with a very cheap price. Founded in 1943 by Ingvar Kamprad, Ikea is
currently the largest furniture retailer across the world with 433 locations all over the globe
(Ikea.com 2020). It is important to note that the organisation generates US$ 45.4 billion in the
financial year of 2019. The headquarters of the organisation is located in Netherlands with a total
number of employees of approximately 211,000 (Ikea.com 2020). The values and optimism of
the employees and the management create a strong brand awareness for the organisation and
ensure sustainability in business in near future.
In respect to this, it is highly essential to evaluate the marketing strategies of Ikea and
analyse the corporate business practice that the company practices. It is important to note that the
report does not restrict its discussion to the marketing initiative of Ikea rather trying to foster an
in-depth analysis over the strategic marketing initiatives that the company follows and must
follow in course of establishing a strong competitive approach in the market. Henceforth,
different models and theories have required to understand and design an extensive strategic
marketingexperience that will be relevant and effective enough for the development of the
organisation.

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Task 1
AC 1.1 Role of strategic management in Ikea
According to Banerjee (2017) strategic marketing is considered to be a process of
planning and development of the marketing initiatives in order to obtain competitive edge in the
chose niche market. In the process of creating a marketing practice it is important for the
company to acknowledge the market situation and survey of the industry so that it will help to set
specific objectives and need for the respective organisation. From the research of Varadarajan
(2019) it can be argued that one of the major organisational objective is associated with
maximising the number of customers and secure high profitability so that the sustainability of
business will be intact. It is pertinent for Ikea to formulate an effective strategic management
practice so that it will generate competitive edge for the organisation in the international market.
Table 1: 4P marketing mix of Ikea
(Create by the author)
PromotionProductPricePlace

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The 4P marketing mix of the company is associated with the product, price, place and
promotional aspects. There are specific strategies and measures that the organisation has been
taken in order to create an effective and extensive organisational practice. As far as the product
of the organisation is concerned, it can be stated that Billy Bookcase of Ikea provides a very
unique design to the product that attracts the customers all over the world. The product has been
offered since 1979 and it is considered to be the most versatile bookcase across the world
(Harford 2017). Gillis Lundgren was the designer of Billy bookcase with the vision of creating
an effective and multitasking design of the bookcases. Flexibility and use of materials are very
important for Ikea to create its unique brand value. Therefore, the Billy bookcase is made of high
quality materials with a unique design that can easily attract the customers.
Moreover, the pricing strategy of the organisation is associated with the value based
pricing strategy. As per the research of Kienzler and Kowalkowski (2017) it can be stated that
the value based pricing strategy creates a great value of the product and able to convince the
customers about the worth of investing money. As a result of that it becomes easier for Ikea to
create a loyal customer base who knows about the value and importance of the products. As a
matter of fact, the value based pricing strategy of Ikea also enables the company to generate an
competitive edge in the market as the rival companies are not in a position to offer products in
such a low price (Hinterhuber and Liozu 2017).
The location of the Ikea is focused on an effective organisational strategy where Ikea is
focused on vertical integration strategy. Sabet, Yazdani and De Leeuw (2017) defined the
vertical integration strategy as a process where the business company is highly willing to control
its suppliers, distributors and retailers. In other words, it can be stated that the vertical integration
strategy allows the business companies to formulate a strategic approach so that it will assist to

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reduce costs and improve efficiency of the organisation (Wan and Sanders). Ikea intricately
emphasises on its supply chain and therefore, the locations are being chosen carefully and mostly
out of town. There are big warehouses where furniture will be displayed and help them to choose
the right product that they a 2017re looking for.
Both traditional and digital promotional strategies are associated with the business of
Ikea where traditional advertising like TV advertisements, sponsorships and newspapers play a
significant role (Ahire and Pekgün 2018). Moreover, the integration of social media marketing
and promotional strategy enables Ikea to enter into the modern business in order to gain
competitive edge with its business rivals. Moreover, the use of the company logo has become
another effective strategy of energising the brand presence in the market (Moon and Kim 2019).
As a leading customise Furniture Company, it becomes important for Ikea to use the logo of the
company as a tool to attract customers.
In this regard, the 4Pmarketin mix is effective enough to highlight some of the key facets
of the strategic measures that Ikea is creating to maximise its customers and increase profitability
to a great extent. Therefore, the significant strategic management facets of Ikea are as follows,
Attaining competitive advantage in the international market
The product description, location and pricing strategy of Ikea are strongly supported the
strategic advantage of the organisation where it is important for the organisation to put enough
stress over the market demands and requirements. The research of Kaleka and Morgan (2017)
advocated that the market demands are generally driven by the demands and expectation of the
customers. Therefore, it becomes a very important aspect for the business organisations to deal
with the customer expectations and gain competitive advantage in the competitive market

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(Nithisathian et al. 2018). For Ikea, competitive advantage is also achieved through unique
strategies that the rival companies are not able to incorporate. As a result of that creating value of
the furniture products is a very unique and pragmatic approach for Ikea.
Maintaining balance with the external factors
It is a pertinent measure for the business organisations to put focus on the external factors
in order to develop a sustainable business practice. In this regard, Ikea also emphasises on the
importance of external factors. For instance, the organisation is always looking into the standard
and quality of its products and never intends to compromise with the quality of the products. It is
also associated with the external factors where the government regulations strongly recommend
the companies the set of rules prescribed by the organisation. Moreover, for energy efficacy also
it is very pertinent for Ikea to follow the internal measures. Therefore, the organisation also
encapsulates a number of practice like virtual integration of supply chain that is considered to be
an energy efficient measure for the organisation.
Harnessing customer satisfaction with the product
According to the research of Hult et al. (2019) it can be stated that customer satisfaction
is one of the important aspects and to some extent the most significant facet that the business
companies should take in order to bring efficacy into the organisational practice. Therefore, it is
a very essential part for the business organisations to manufacture the product in such a manner
that it will satisfy the expectations and demands of the customers (Zablah et al. 2016). Ikea
intends to meet the specifications and expectations of the customers in a great manner. First of
all, the Billy bookcase is a product with value based pricing. Moreover, the unique design and
quality cannot be provided by any other companies. The customers can also place their

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customised request so that the Billy bookcase will be designed accordingly. It is definitely help
the organisation to pave the way for founding a strong brand image in the competitive market.
Setting better organisational objectives
As per the research of Day (2019) the success of an organisation is depended on proper
objectives of the organisation. The role of organisational objectives is to provide guidance for the
company for continuing its success and high profitability in business. In other words, it can be
stated that for achieving success in implementing the strategies, it is very essential for the
business organisations to set its objectives appropriately. However, the company also needs to
have in-depth knowledge regarding the market. In respect to this, marketing mix fosters enough
exposure to the organisation to compare the situation of the organisation and the market demands
(Wickert, Vaccaro and Cornelissen 2017). Therefore, it becomes a strategic aspect for Ikea to
focus on the marketing mix practice and shapes its strategies in reference to the marketing trends.
AC 1.2 Process involved in strategic marketing
Strategic marketing is a required steps for the multinational companies to compete in the
competitive international market. The purpose of the strategic marketing practice is to create an
effective organisational strategy that can foster competitive edge in the future expansion and
sustainability of the organisation (Anfer and Wamba 2019). Henceforth, it seems to be an
important aspect for the business companies to design the strategic marketing process properly
so that it will support to meet the organisational objectives properly. Moreover, the right decision
of the organisation is also relied on effective implementation of strategic marketing (DeTienne,
and DeTienne 2017). Therefore, it is very essential for the business companies to focus on the
process of introducing proper process of strategic marketing.

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Analysing the market
It is essential for the organisation to initiate a deep down research over the market so that
relevant information about the customers like their expectations and the different development
areas will be highlighted (Hunt 2017). In case Ikea, the organisation is strongly emphasises over
customer expectations. Therefore, the market analysis will definitely provide in-depth
understanding of the customer demands.
Retrieving information regarding the target market
Target market identification is the major purpose for the business companies in order to
get a clear image of the customers and prioritise them as per the needs and demands (Aziz et al.
2019). Henceforth, Ikea should retrieve information regarding the customers based on setting
target customers on their different priority basis.

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Establishing a strong marketing mix process
After identifying the target market, a marketing mix procedure plays the pivotal role in
terms of shaping the strategies on every aspect. The role of the marketing mix process is to cater
a competitive edge to the organisation underlining the strategies (George 2017). For Ikea, the
marketing mix process will deliver competitive advantage in product lining, choice of location,
pricing strategy, promotional tools and so on.
Emphasising on customer satisfaction
The final part is to evaluate the efficacy of the strategies to meet the satisfaction and
specific requirements of the customers (Kumar, Sharma and Gupta 2017). Henceforth, Ikea must
follow an evaluation over the customer needs and the impact of strategies over the needs.
1.3 Link between strategic marketing and corporate strategy
The link between corporate strategy and strategic marketing is very close and the purpose
of harnessing a strong link between the two is to make the strategic marketing practice relevant
with the corporate strategy. According to Brewster (2017) corporate strategy is related to the
long term plan of the organisation that guides the organisation to operational framework or plan
of action. The plan is to create a better market presence with the help of right balance between
the corporate strategy and the prescribed marketing strategies so that it will provide an
opportunity to encapsulate the market effectively (Engert and Baumgartner 2016).
The vision of Ikea is associated with the better life for most of the people across the
world. An utilitarian philosophy is played a significant role in the process. It is important to note
that aggressive expansion is not the objective that Ikea follows in business orientation. Rather it

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is very important for the organisation to create its brand value with quality of product and
services. Therefore, the corporate strategy highly influences the marketing strategy of Ikea.
Corporate strategy Marketing strategy
 Expand the business all over the world.
 Meet the specifications and requirements
of the customers.
 Increase the availability of products in
terms of purchasing capabilities.
 Creating a positive impact over the
consumers through sustainability.
 Focus on creating unique product line.
 Develop customise products so that the
customers can get whatever designs they
want.
 The pricing strategy has been set
accordingly and comparatively lower than
the rival companies.
 Focusing on climate positive response and
responsible sourcing of materials so that it
will facilitate social and environmental
obligations of the organisation.
AC 2.1 Values of the models used in strategic marketing planning
PEST model for strategic market planning
Factors Explanation
Political Local governments and their influences are posing great influence over
the decision making of Ikea. The organisation is trying to follow the
international regulation of business different countries. Moreover, it is
also a significant feature of Ikea to have a close relationship with the
respective countries of operations in order to establish a sustainable

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business practice (Hämäläinen 2019).
Economic The world economic fluctuations heavily impact the business practices
of Ikea. It is important to note that the product price of Ikea is
strategically low so that it will not be affected by tyhe ups and downs
in the international economy (Beliveau et al. 2018). This is also a
major facets of strategic business operations of Ikea in overseas
market.
Social Incorporation of the local community and local customers is always
considered to be the best sustainable approach that any business
company should follow as long term strategy. Henceforth, in case of
Ikea also the same strategy has been followed in social welfare
programs (Hämäläinen 2019). Moreover, the customisation of
products also enables a close relationship between the customers and
Ikea.
Technological Complete reliance over the customer specification requires enough
technological advancement so that the business enterprise can easily
fulfil the requirements of the organisation (Cronje 2016). In case of
Ikea, the skills and cutting edge technologies from design to
manufacturing and customise the products proves its excellence in
introducing new and advanced technologies in business operations.

Sales
Time phase
Development
Introduction
Growth
Maturity
Decline
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Product life cycle model
The product lifecycle of Billy Bookcase of Ikea shows that the product is highly popular
among the customers and also considered to be one of the most successful products of the
company. There are in huge demand of the Billy Bookcase and the product is quite old.
However, Ikea manages to facilitate a better marketing and development of the product so that it
will not easily on the verge of decline. It can be stated that the customisation option revive the
demand of Billy Bookcase as the customers are eligible to order the product as per given
specification. It creates a boost for the demand and sale of Billy Bookcase. Based on the current
sales of Billy Bookcase, it can be stated that the product situates between the Growth and
Maturity phase.

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2.2 Link between strategic positioning and marketing tactics
Strategic positioning is comprised of segmentation of the customers, identifying the
potential customers and the position mapping of the organisation in the competitive market. De
La Fuente et al. (2016) opined that the role of strategic positioning is associated with the
marketing tactics. In other words, it can be stated that marketing tactics plays the role of a
catalyst to influence the strategic positioning. However, this notion does not fit with the research
of Mackelprang (2018). The research revealed that business companies are generally decided its
marketing tactics on the basis of strategic positioning. Without having the right direct in terms of
understanding the position in the competitive market and the target customers and their
expectations it will be futile for any business organisation to gain strategic advantage. In this
regard, it becomes a pertinent measure for business companies like Ikea to figure out the
strategic positioning of the organisation before setting up the marketing tactics.
2.3 Merits of relationship marketing
There are certainly a number of benefits that Ikea can get through relationship marketing.
For instance, the relationship marketing will help Ikea to build a trust among the consumers
through communication and clarification of the purpose of Ikea. In addition to this, encouraging
or influencing the customers can also be done with the help of relationship marketing (Payne and
Frow 2017). Gummesson (2017) opined that the employees will get in touch with the demands
and specifications of the customers and it becomes useful for Ikea to settle down successfully.
Innovation can also be achieved through relationship marketing where it is pertinent for Ikea to
figure out the demands of the customers and utilises its innovation to deliver an unique product
to the customers.

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Task 2
3.1 Techniques for growth opportunities in the market
Currently, Ikea is considered to be one of the leading customised furniture manufacturing
companies in the world. in the financial year of 2019, it can be seen that the revenue of the
company surpassed its previous record of £38.8 billion. The present revenue collection of the
organisation in 2019 was £41.3 billion.
Image 1: Sales revenue of Ikea since 2001
(O'Connell 2019)

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The fact represents that there is a rapid increase in the revenue collection of Ikea which is
very optimistic and promising for the organisation. Henceforth, there is no denial fact that the
business growth of Ikea is extensive and rapid. It is also important to note that the market share
of Ikea is also a proof of its successful business attempt in the international market.
Germany
30%
United States
26%
France
18%
UK
13%
China
13%
Market share
Image 2: Global market share of Ikea
(O'Connell 2019)
From the above image, it can be derived that Ikea has its largest market share in Germany
and it is followed by United States and France. In fact, the UK and Chinese market are also
provided enough impetus to the business of Ikea so that the organisation can extend its business
further into the other parts of the global market.

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Image 3: Countries having Ikea stores
(O'Connell 2019)
There are number of important aspects regarding the strategic expansion of Ikea in the
international market. For instance, in most of the successful developed and developing countries
Ikea stretches its business operation successfully. However, in most of the Latin American
countries and almost the entire African continent do not have any presence of Ikea.

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Image 4: Global furniture market
(O'Connell 2019)
Perhaps, the less presence of Ikea in African and Latin American continent is associated
with the global furniture market trend. From the above image, it can be stated that the European
and North American market are the most promising furniture market across the world and
currently the Asian market delivers lots of opportunity for the furniture business as the demands
of the customers are also growing at a rapid scale. Henceforth, focusing on the Asian market is
one of the core objectives of Ikea and the organisation projects Asian market as the next step to
expand its market rather than Africa or Latin America.
3.2 Marketing strategy options
For identifying the marketing stratergy options, it is important to figure out the
opportunities with proper tools. Therefore, the BCG matrix will be used in case of focusing on
the opportunities for Billy Bookcase in the international market.

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Based on the understanding, it can be stated that there are four concepts or situation that a
product can face on the basis of its market growth rate and the relative market share. The first
situation can be identified as Question mark where the product generates high growth rate but
relatively low share as a result of that it will definitely restrict the increase of revenue of the
organisation (Shanbhag, Dutt and Bagwe 2016). In the next case scenario, dogs represent a low
market growth and market share which definitely levies a negative impact over the progress of
the organisation. The third situation is known as Cash Cows where the market share can easily
be increased by low market growth (Torquati et al. 2018). This is effective for premium products
where despite of having enough market growth the organisation can get enough market shares.
The final stage is associated with the development of extensive market growth with
proportionate market share named as Star (Madsen 2017). In this situation, the product basically
succeeds to generate more market share because of its subsequent growth and presence in the
market.
In case of the Billy, Bookcase of Ikea, it can be stated that the product is considered to be
one of the best and most popular items of Ikea and has enough opportunity to get strategic
position in the international market. The success of the product intertwines with its unique design
and user friendly quality which is unparalleled and exclusive. The cheap price of the product also
makes it more appreciable to the customer as they can easily purchase the product within the
budget and get quality design and material even customise it as per needs. Therefore, the Billy
Bookcase of Ikea is belonged to the Star category where there growth in the market or demand
will easily supplements the increase in market share for Ikea.
Henceforth, there are some marketing strategy options that Ikea can use in order to get
strategic advantage in the competitive market. The options are as follows,

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Increase market presence
It is important to note that the Asian market is dynamic and highly competitive so that it
is very critical for any new entrants to survive in the market. In addition to this, Jones and Ström
(2018) opined that the Asian market is driving by its rich cultural tradition and ethos. As a result
of that it becomes a pertinent aspect for the business companies to understand the culture and
blends it with the operations in order to influence the customers in a positive manner. Therefore,
for Ikea, widen up its perception regarding the cultural differences of the Asian customers and
manufactures the product accordingly will definitely provide a competitive edge for the
organisation.
Set up a brand value in the new market
Enhancing the brand value is also identified as good and optimistic gesture for Ikea to
expand its business successfully in the Asian market. Memarzadeh and Anand (2018) opined that
brand value generates a long term benefit for any business enterprise as people are well aware of
the value and quality that the respective company can deliver to its customers. In response to
this, incorporating the local communities in different programs can be a positive approach for
Ikea. Moreover, employment can also be a tool of engaging the local community with the
organisational operations directly especially countries in the Asian market where unemployment
is a very common issue within the society.
Design effective promotional measures
Due to the magnanimity of competitiveness in the Asian market, it is very essential for
the business companies to design effective promotional measures so that it can influence the
customers effectively. Therefore, for Ikea also promotional attributes are very significant to
create a dedicated customer base and expand its market strategically in the Asian market. As a

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matter of fact, focusing on customer satisfaction and needs will also help the organisation to
achieve competitive edge in the market.
3.3 Appropriate strategic marketing objectives
There are two specific strategic marketing objectives that Ikea is focused upon while
expanding business in the new market. One is associated with the increase in the revenue of the
organisation. It is pivotal for Ikea to understand that the new market expansion has to be focus on
boosting the revenue of the organisation as it is able to determine the future sustainability of the
organisation. on the other hand, putting emphasis on maximising the customers is also facilitate a
great deal of advantage for Ikea to survive in the competitive market. Therefore, the objectives
are as follows,
Variables Objective1 Objective 2
Specific To increase the revenue of the organisation
by 2%.
To maximise the customer base up to
4%.
Measurable To boost the sales of Billy bookcase by 3%
within 2 years.
To enhance the market share up to 2%
within 2 years.
Attainable To emphasise on the brand presence in the
market.
To develop a loyal customer base
through effective promotional
strategies.
Rational To focus on the quality of the product
material and customer service.
To set up a unique and attractive value
proposition of the product
Time frame The entire process will be completed by 2
years.
The process will be completed within a
year.

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4.1 Impact of changes in the external environment
There are some external factors that can influence the initiative of Ikea either in positive
or negative way. Therefore, the external factors are as follows,
Technological factor
Technology is considered to be one of the major contributing factors for Ikea to get
strategic advantage in the Asian market. It can be stated that the success of the company is
primarily depended on its use of technology in both manufacturing and customer service process.
From the research of Ko and Ge (2018) technology in business creates huge impact over the
entire business practice and it is getting a determinant for the success of the business companies
in competitive market. Moreover, the Asian customers are also interested in new technologies so
fulfilling their expectations is also a pertinent measure that the business organisations must carry
out.
Social factor
Cultural and social differences are referred as a challenge for Ikea to operate in the Asian
market. The Asian society is not the same as the western society. There are cultural and
traditional aspects that influence the consumer behaviour intricately. Moreover, difference in
choice and expectations of the Asian customers are way different than the western people
(Aqmala et al. 2018). Therefore, it is very important and essential for Ikea to understand
differences in the Asian society and the specific mindset of the people. Based on that the
marketing approach has to be set otherwise it will be a catastrophe for Ikea to penetrate into the
Asian market.

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Legal factor
Apart from the international regulations, the regional regulations are also important for
Ikea to address. Bilateral agreements and relationship with the international community also play
a significant role in doing multinational business. It is a challenge for Ikea to deal with the
country specific legal aspects and focus on the international relationship while establishing
business in a specific country in Asia. Cooperation from the national government comes into
play at the time of foreign direct investment. Henceforth, it is foremost essential for Ikea to
evaluate the role of the local government and the regulatory barriers that are possible threat for
the business initiative.
Globalisation
The impact of globalisation certainly puts great opportunity for Ikea to expand its
business further in the Asian market (Yang, Choi and Ryu 2017). However, it is also important
to note that the opportunity is not limited to Ikea rather other business companies are also got
equal prospect to invest in the Asian market. Therefore, it is obvious that the competitiveness in
the market is increasing at a rapid pace and both the business giants and the SMEs will face the
same level of competition. Henceforth, it is essential for Ikea to create its unique brand image in
the international market with dedicated customer composition and brand quality.
4.2 Internal analysis for strengths and weaknesses
Based on the external analysis and the internal aspects, the SWOT analysis of Ikea can
provide potential impact over the marketing strategies and business orientation of the
organisation. Therefore, it will a proactive approach to analyse the strengths and weaknesses at
first so that any kind of threat can be averted effectively.

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Strengths Opportunities
 Vision and value for customer
 Well defined business strategy.
 Uniqueness of the product and brand
value.
 The green business model can provide
sustainability.
 Customisation of products thrills the
customers.
 The Asian market is emerging.
Weaknesses Threats
 Due to internationalisation it is difficult for
Ikea to manage its control standard across
locations.
 Excessive focus on cost leadership can be
fatal for the organisation.
 Environmental concerns for raw materials.
 High competitiveness in the market.
 Excessive government interference.
 Lack of social media marketing.
4.3 Proposed strategic marketing responses
Set a product line as per the consumer needs
It is important for Ikea to create a range of product line on the basis of the local needs and
culture of the region. The process can help to facilitate a good exchange of vision between the
customers and Ikea. Moreover, it will help the organisation to express its positive gesture of
respecting the culture and tradition of the country.

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Design creative marketing strategy
The marketing and promotional strategy must incorporate social media as a promotional
tool in order to attract maximum number of customers. The social media marketing is also cost
effective that can help the organisation to reduce necessary costs to a great extent.
Good relationship with the respective government
Relationship with the local government can help Ikea to deliver a strong and optimistic
message to the government about the intention and purpose of the organisation. Moreover,
abiding the regulatory frameworks will also help Ikea to expand its market sustainably.
Recommendation
There are some recommendations that Ikea should follow to eradicate any kind of
challenges in the new market. The recommendations are as follows,
 Establishing a clear marketing approach should be the major target for Ikea while
penetrating in the new market.
 Choosing the right promotional measure is also required for the company for settling
down in the competitive market successfully.
 Emphasising on the CSR approach can be the best possible way to integrate both
government and local communities and create a positive brand image.
Conclusion
. The report tries to elucidate the fundamental aspects that Ikea must consider while
penetrating into the Asian market. There are cultural and social aspects and extensive
government interference in the market. However, a proactive approach and strong will can only

27STRATEGIC MARKETING MANAGEMENT
deliver competitive edge for Ikea in the new market. In addition to this, the report also shows
that there are significan strength and brand value that Ikea has developed in the developed
market and it will definitely boost the organisation in operating new market. In a conclusion, it
can be argued that the will and strategic motive are the focal points that Ikea should focus in the
new market in order to get competitive edge.

28STRATEGIC MARKETING MANAGEMENT
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