'Culture and Ikea\r'

'International Management Bermet Kanybekova 20113658 Assignment 5: IKEA 1. What has allowed IKEA to be successful with a relatively interchangeable product and product line in a business with immobile cultural influence? Did adaptations to this scheme in the North the Statesn securities industry seduce a defeat to their approach? IKEA has become the worlds largest sign furnishing retail chain with its multinational expansion in three major phases. Its mission is to offer a wide variety, trustworthy design and regard as for â€Å" puppylike people of all ages”.IKEA is determined to maintain a govern product dodge with a ordinaryly accepted assortment around the world, now carrying a variety of different home furnishings. It has limited act of manufacturing, however, designs all of its furniture. IKEAs cost leadership strategy by means of high volume production and standardized items enabled it to pay back its business. Consumers ar expected to become â€Å"pros umers”, in the mean of half producers and half consumers, thus supplying their clipping for piece work after their purchases.Consequently, IKEAs success is collectible to its customer focused strategy. The principal market physical object is composed of â€Å"people, who are unfledged, highly educated, liberal in their cultural prizes, white-collar workers, and non especially relate with status symbol”. Therefore, consumers with low status disturb and low conservatism enabled IKEAs success in strong cultural influences. Moreover, high income groups invite fewer cross-cultural differences and more open to adapt values to saucily beliefs.As a result, with their right consumer target, IKEA was able to succeed with their relatively standardized product line. North Ameri great deal market proved that standardization is not a mention to success in an American market; thus adaptions have been made that clearly changed IKEA’s strategy. IKEA with its standar dized market changed to a global market strategy and implemented new ideas that fit American grasp in their market. Adjustments were made to their furniture that named and targeted more American consumers.Moreover, some adaptions might have been transferable to early(a) targeted markets around the world. Consequently, the North American experience has caused IKEA to flux in their ideas and start remixing its formula elsewhere. For instance, these changes were implemented to the European market, ever-changing furnishing concepts such as making couch beds in Europe. 2. Which features of the â€Å"young people of all ages” are universal and can be exploited by a global/regional strategy? The â€Å"young people of all ages” share similar features internationally that enabled IKEA to maintain its target universally.However, not all of the targeted features were shared out among divers(a) cultures. Hence, there were some adaptations according to different cultures a nd the relative importance of these features varied between countries and their consumers. Nonetheless, the legal age of the targeted consumers liked to perceive themselves as practical, groundbreaking and non-traditional. In other words, these consumers didn’t stick to the traditional commission of furniture, instead saw IKEA’s designs as good, modern and practical that allowed them to afford their products.In this sense, simplicity and practicality was more big than traditional styles of furniture. With this concept, IKEA was able to specifically target those consumers who vied their products as fitting their taste with different features. Therefore, this concept with existence practical and simple instead of traditional is an manakin of universal feature that can be barely developed. IKEA’s targeted market like shopping for good value; therefore, they are ready to contri bute their measure and energy to get satisfaction out of assembling their work.Co nsequently, this willingness to contribute more and achieve better value is some other feature that is shared among IKEA’s universal target. These new changes in IKEA’s strategic end have brought it to a new level of international business with better customer satisfaction and greater value. 3. Is IKEA fate to succeed everywhere it cares to establish itself? Is IKEA destined to succeed depends on how flexible its concept is in various countries. However, I believe that IKEA will not succeed everywhere it establishes itself.The concept of IKEA can pretty be changed and adapted according to various cultures, but I strongly believe that sealed changes cannot be implemented fully. This changing concept will have limitations when it is further taken globally and need to tuck the standards universally according to various economies of countries. For instance, value of a certain sofa in a certain country is totally different in another country. If we take a sofa in Amer ica for $300, the same product must be interchange at a lower price in a developing country due to its value differences in their economy.Therefore, not all of IKEA’s concepts can be fully changed if they want to maintain its accredited formula. Moreover, customer expectations are different in various countries, thus, IKEA would have to consider new changes and flexibility in their concept to meet customer expectations and their value for products offered. In conclusion, I would like to point out that there is always a limit in adapting and changing concepts to meet various customer values and their desires to create profitable sustainability.\r\n'