Essay on IKEA Marketing Analysis Final Version

Words: 3918
Pages: 16

Delivering the Value Case Study Analysis
Renée Williams

Marketing Management – MKTG – 522-2776

DeVry University, Keller Graduate School of Management

February 8, 2015

Table of contents

Delivering the Value Case Study Analysis 1
1.0 Introduction 3
2.0 Brief Description of IKEA 4
3.0 Industry Analysis & Industry Trends 5
3.1 Environmental Impact 7
3.1.1. Economic 7
3.1.2. Social 7
3.1.3. Technological 7
3.1.4. Legal 8
3.1.5. Political 8
3.1.6. Environmental 8
4.0 Target Market 10
4.1 IKEA in China 10
4.2 IKEA in India 11
5. Challenges 11
5.1 Cultural Environment 12
5.2 Underdeveloped distribution systems in emerging markets 12
6.0 Alternative Solutions 13
6.1 China 14
6.2 India 14
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In 2011, the Chinese government began the construction of 10 million units of non-commercial residential housing (i.e. indemnificatory houses) to further improve the living standards of medium-and low-income families and promote the healthy development of the real estate market. Shanghai, one of the most developed regions in China, accounts for the largest proportion of industry revenue at 16.3% in 2014. Guangdong province and Shandong province make up 15.8% and 9.0% of total industry revenue, respectively. The geographic concentration level of the Furniture Store industry is similar to the geographic spread of household in China. However, the percentages of household in North East China, North West China and South West China (China’s developing regions) are larger than their respective industry revenue shares. This is because the economy is less developed in these regions, and many households are of ethnic minorities that produce and consume furniture within their own cultures (

3.1 Environmental Impact

3.1.1. Economic
IKEA strategy is flexible with the economic conditions. As European economy is under recession and consumer behavior has changed now. People are more quality conscious than before in Europe and other parts of the world. Analyzing this global business environment, we could say that offering low priced standard products would be the best strategy in such an economic recession across the world. IKEA has already