Ikea Closing Case

IKEA’s Case

1. How is IKEA profiting from global expansión? What is the essence of itsstrategy for creating value by expanding internationally?

They use the strategy of low- costs products, using products that are attractive to costumers, so when they have planed spend 50 dollars in one products, they end up spending 500 dollars in several products, in the second question, IKEA maximise the value of the firm by achieve low costs through economies of scale learning effects of local differences.

2. How would you characterize IKEA’s original strategic posture in foreign markets? What where strengths of this posture? what were its weakneses?

IKEA knew that the foreign costumer needed low cost products so in order to make this posible they found suppplier in foreign markets to reduce to costs of shiping, this strategy helped IKEA to offer low costs products to foreign customers.

One weaknes was that when they introduce IKEA’s products into american market, they noticed that americans have a differents style in forniture, so they have to adapt the products on that market.

3. How has the strategic posture of IKEA’s changed as a results of its experiences in the U.S? Why did it change its strategy?

IKEA had a global standarization straegy so when they introduce the products into US market , they have to redesigned almost everything, because standard products of IKEA were to small for people of US, like the beds, glasses, sofás, etc. So this helped so much to succed in america markets.

4. How would you characterize the strategy of IKEA today?

They keep the strategy that has helped them in previous years, that are to offer low costs products with high quality, so everybody can afford it in this way IKEA create loyal costumers with the pass of the years.