CASE STUDY

IKEA: Furniture Retailer to the World
In a study some factors that have accounted for the success of IKEA are the prices they put on the furniture, the cost efficiency in the way the furniture was composed of their form of transportation. The article states that IKEA would look at the competition’s price in each category, and then set their on low prices. IKEA utilized cost efficiency with their building material so they can turn profit. Inexpensive materials that are not very aesthetically appealing are used in places that people can’t see very easily. IKEA cut down on their costs exponentially by shipping the products directly to the customers or they can go directly to the outlet stores to pick up the furniture. Finally, the atmosphere of IKEA the stores play a role in the overall success of the furniture store. In the global business I think the company product strategy and the range of the great ideas. This is different than anything that the customers didn’t even know it existed.
Legal, Cultural and Ethical Challenges
The product including Scandinavian, Modern and the young European look of styles. IKEA was hoping for in the U. S., should the company change their strategy. I my opinion I feel that some of the matrix of the products should change, with the different roles governments for the business. I thinks that IKEA wants to achieve the revenue in the U.S. they have to have more floor plans that fit our way of life and culture. The business is making sure that the strategic, operational plans are followed through in the production part with new ideas so the than can go global. Ikeas have set goals in making sure in reaching all consumers to be in a position of buying the products. IKEA goal is to break the trend of the Sweden people, no more hand me down furniture within families. IKEA affordable furniture was set-up for a man with a flat income at the bottom of the payroll could also afford his products. IKEA was not prepared for adjusting to the change of cultures.
In conclusion the new store generated a large amount of traffic so much so that employees could buy the product at a rapid pace. The culture of the Swedish people now, have been given options in buying furniture at a cheap rate, and even options to order for on line delivery. IKEA remained at a very low-cost for the people and consumers. The company plan for bringing their idea to the United States was not an success due to not researching the culture background of the American people. The strategic plan was set in Sweden may have to be adjusted before entering other countries. How are you going to sell IKEA strategic planning was to make affordable furniture and sell to products to the consumers in over the market world. IKEA found that its “European-style offerings didn’t always resonate with American consumers. IKEA success in Sweden was a great hit for the founder the company across the internet and by opening small stores in promoting their products. In a company you have to research and changed the mind of different leaders, of each country with the different cultures or religion beliefs.

Reference
Hill, C.W.L. (2013). International business: Competing in the global marketplace (9th ed.). New York, NY: