Ikea Company Research

IKEA

Company Research

International Marketing

Abstract

The purpose of this examination of the home furnishing world-wide company named Ikea is to reveal how a foreign company became successful not only in the United States but also in many different parts of the world. Paying attention to the macro environmental factors that affected the company and the measures it took to eliminate these challenges prove that a company must involve itself in the culture and lives where it does business to be embraced. In the end it concludes that the persistence and strong values of a company as one can create for a stable global expansion.

I began my search for foreign companies that entered the United States on the Forbes website. I wanted to know what companies where the top foreign companies with the highest profits in the U.S. Among them I found Ikea and immediately I was intrigued on how the company became a success in the U.S. with products that are made in Sweden. For the reason that I have visited and shopped at the store on more than one occasion so, I wanted to know how they are able to make high profits in the U.S. when the currency exchange tends to be against the dollar when compared to the Euro. How is it that they would want to venture into the United States territory and expand their business was what geared me in my research. Ikea is recognized as number forty one on Forbes World’s most valuable brands and three hundred best international companies of the world. Founded by Ingvar Kamprad at the early age of seventeen, as the senior advisor and creator of he operates based on long term perspectives that are to ensure the growth of business and not become dependent of financial institutions. It is a multi-national business that sells Scandinavian modern style furniture and home accessories.

Ikea is recognized for selling affordable home furniture. What separates them from the rest is that the customer can customize the furniture they sell by providing custom size furniture parts at an affordable price and good quality. They want people from all walks of life to be able to purchase their products. They demonstrate to have a company vision far beyond just home furnishings. By enhancing their price chain and forming long term relationships with contractors, large quantity production and taking advantage of automated manufacturing they attempt to develop and preserve good everyday living for all those affected by their products.

The first group of macro environmental factors of Ikea that I looked into was their business culture. The founder of the company determined that he would remain and operate independent and so he knew that the stock market was not an option. He understood that the company must advance in resources before they were to expand and therefore the Ikea franchise system was established. Secondly, I read about the value of the organization and they sustain the concept of valuing and having great passion for the home life. They transfer this message successfully by providing home products that everyone can accommodate in their uniqueness of their own home and most of all that their products are very affordable.