It has to have more points of differentiation because when other competitors in the industry bring their prices down and offer quality and superior customer service, then chances are likely that customer loyalty and brand image of IKEA will drop off.
IKEA fulfils the needs of customers who want to buy inexpensive and durable furniture for their homes but when it comes to catering the needs of those who are looking for modern and stylish furniture items, IKEA fails to do the job.
With the use of relevant globalization and internationalization models, analyse and evaluate IKEA’s internationalization strategy. What do you consider to be the key opportunities and threats facing IKEA at the end of the case?
Whenever a multinational company wants to expand its business across the boundary of the home country, it has to undertake one of the four strategies mentioned in the diagram below. IKEA opted for globalization and internationalization.
Companies globalize when there is no room for further growth in their home country. Same goes for IKEA-it was a huge hit in Sweden and when the management saw that for making more profits and growth, they have to cross the boundaries. The most common and fruitful strategy that firms adopt when they want to expand at the global level is through mergers and acquisitions. . Low Price and Good Quality Lifestyle as IKEAs Business Model.
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