Ikea

IKEA had successfully expanded their business through Europe and United States. At that time IKEA decided to expand their business map to Asia, the first step is Japan. IKEA first time came to Japan is in mid of 1970s, however they had struggling during that time, there are few reasons that IKEA failed to Japan market, culture difference, IKEA copied its business model from Western countries to Japan. But Japanese are the cusomter who ask a lot service, Japanese felt weird that no one serve them and they do not like “ do it yourself” style, also the furnitures sizes in IKEA do not fit most Japanes family style. IKEA pulled out from Japan in 1980. Since IKEA are not successful from the first time they entered to Asia market, IKEA planned five years in order to return to Japan market, which is the second biggest economy and retailers market in the world. Before IKEA return to Japan market the CEO Tommy Kullberg observed some Japanese families he noticed that there were differences between Western countries families and Eastern countries families. The new ideal concept of IKEA in Japanese market is this time is "making an ideal home” and Kullberg also explained that "In our world, home is the most important place and (having) children are the most important thing. Go home in time to see your children. That is the concept we want to inspire (in) people here". (Wijers-Hasegawa,2006) The center of its new strategy is “small space living” since children in Japan usually live with parents at home befor marriage. IKEA believes that Japanese and Swedish designs are similar as both of them focus on clean, simple design made of wood and natural materials as well as living comfortable in small spaces (Jetro Japan External Trade Organization, n.d.). Second time when IKEA reentered to Japanese market in 2001, this time IKEA found out the difference between Wesrern countries and Eastern countries. In 2007 at Norway, IKEA decided to open a hostal. IKEA provided a free place for their customers for stay overnight.IKEA also give free meals, bedsheets and slippers before customers leave IKEA hostal. This strategy helps IKEA improve its image and market share. But there is one thing that has to be concerned; this strategy does not fit every countries and cities. New York defientily is not a ideal city for this new concept, because too many homeless people. IKEA-SOWT analysis IKEA believes in creating long-term partnerships with its suppliers in order to achieve this. By committing to buying large volumes over a number of years IKEA can negotiate lower prices. This also benefits the suppliers because they enjoy the greater security of having guaranteed orders. IKEA sells their image as well, when people want to buy furnitures the first thought always IKEA, because its cheap and sample, easy to DIY. Opportunity-IKEA can use more green materials for its furnitures since “green economy” has been an issue. IKEA should develop a smaller store so that can attract more elderly IKEA's weaknesses may include: The size and scale of its global business. This could make it hard to control standards and quality. Some countries where IKEA products are made do not implement the legislation to control working conditions. This could represent a weak link in IKEA's supply chain, affecting consumer views of IKEA's products. The need for low cost products. This needs to be balanced against producing good quality. IKEA also needs to differentiate itself and its products from competitors. IKEA believes there is no compromise between being able to offer good quality products and low prices. IKEA needs to keep good communication with its consumers and other stakeholders about its environmental activities. The scale of the business makes this a difficult task. IKEA produces publications in print and online (for example 'People and the Environment') and carries out major TV and radio campaigns to enable the business to communicate with different target audiences