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  • Essay / Cultural Challenges by Ikea - 705

    The company faces many challenges, the first being cultural. Cultural differences in countries usually include social structure, religion, language, education, etc. These differences have important implications for marketing strategy. Probably the most important aspect of cultural differences is the impact of tradition. As we know, the differences between countries and languages ​​are different. It is difficult for employees to interact with customers. This is how the owner overcomes cultural challenges. In addition to this, the owner has also done a lot of market research in terms of lifestyle, cultural differences, size of products in the house and customer behavior. Second, the challenges of conquering the foreign market. There are many issues and challenges that the owner should emphasize before making the decision to open the overseas market and make the business a global one. First, our market will compete with more established brands. Indeed, IKEA is not only a furniture company in the world, there are many furniture companies which already have the largest market, such as Home Depot, Seamens, Sears, B&Q, John Lewis, Argos and many more. 'others. Most competitors offer the same products as IKEA. Thus, the competition to conquer the foreign market has increased. The owner has to adopt many strategies to ensure that the product can enter the foreign market as well. One of their strategies is promotion strategy, pricing strategy, product strategy and place strategy. There are many differentiations between IKEA and other furniture companies based on advertising. Advertising plays an important role in presenting the product and brand to ensure that all customers recognize their product. The...... middle of paper...... a fairly standardized approach globally. Ikea uses large stores with many showrooms to showcase their products to customers, which is why IKEA stores are located in less expensive areas. For example, in Japanese, before this, IKEA introduced a mega store with 10,000 product lines supported by 2,200 parking spaces, a daycare center and one of the largest restaurants in Tokyo. The new store attracted a lot of attention and in the first four hours 15,000 people passed through its doors located in the Funabashi area. Even though the store is located on the outskirts of the city, it gives IKEA a real opportunity to build large stores and save on land rent, thereby reducing real costs and keeping service prices low, which still leaves room for Ikea to educate its customers and possibly train them to assemble the furniture themselves in the future.