Cultural Challenges By Ikea

705 Words2 Pages

There are many challenges that faces by the company, first is cultural. The differences of cultural in countries usually , including social structure, religion, language, education and so on. These differences have important implications for marketing strategy. The most important aspect of cultural differences is probably the impact of tradition. As we know difference countries difference language. It make difficult for employee to interact with customers. This is the one way how the owner overcome the challenges in cultural. Besides that, the owner also done a lot of market research in terms of lifestyle, cultural differences, size of products in household and behavior of customers. Second is, the challenges to conquered overseas market. There are many problems and challenges that must emphasized by owner before make decision to open the market to overseas and make the business become globally. First is, our market will competing with more established brands. This is because IKEA is not only one furniture business in world, there are many furniture business that already have biggest market such as Home Depot, Seamens, Sears, B&Q, John Lewis, Argos and many others. Most of the competitors deal in the same merchandise as IKEA. So, the competition to conquered the overseas market are increased. There are many strategies must be taken by the owner to make sure the product also can enter the overseas market. One of their strategies are promotion strategy, pricing strategy, product strategy, and place strategy. There are many differentiation between IKEA and others furniture company based on advertising. Advertisement main as an important role in introduce the product and brand to make sure all customers recognize their product. The... ... middle of paper ... ... a quite standardized approach worldwide. Ikea makes use of big size stores with many showrooms to present their products to the customers that why IKEA stores locate in less-expensive areas. For example, in Japanese, before this IKEA introduced a mega store with 10,000 product lines supported by 2,200 car parking spaces, a child-care area and one of Tokyo’s largest restaurant and the new store attracted a lot of attention and within the first four hours 15,000 people had passed through its doors which is located in Funabashi area. Even though the store locating on the outskirt of the city but it gives actual opportunity for IKEA to build big stores and save on ground rent, thus lowering the actual costs and keeping prices low services, still left space for Ikea to educate their customers and possibly train them to assemble the furniture themselves in the future.

Open Document