Ikea assignment
- 1. 1 I)Advantage a) Reaches a large number of people b) People from all around the world would be aware of IKEA’s distinctive product variety. c) IKEA’s products are not customized for local markets, however they are kept to standardize products and operations worldwide. d) IKEA’s catalogue sells a Sandinavian lifestyle that customers around the world embrace II) Disadvantage a) Giving greater ownership to its subsidiaries. b)Maintaining the ability to adapt furniture c) Customizing to suit the local market. d) Ignore the different tastes and preferences of the market 2) Yes there is a cultural difference in the catalogue of marketing tool because it is a cost effective for ikea to advertise its furniture products but the main challenges is that the customer around the world do not have the same type of cultures ,practices, income level etc.So if all the same range of products shown in the catalogs distributed around the world people will get confused and not be able to find things they need.Its better for ikea to make a complete market analysis to know local people preference and life styles and then decide its marketing strategy.
- 2. 3) Cultural diffrences of same product in IKEA catalogues are- a) Chinese cultural diffrences i)Language barrier is another challenge when they entered the Chinese market. As a result IKEA used the strategy of pronounce oriented names by translating their name to chinese. (MOOJI) The name consists of two characters which means:- a) Comfortable and family b)Represents their product and corporate identity. b) Danish cultural differences i) IKEA management is very human oriented. Very keen on making sure that the staff are happy and the side effect of that will give them incentives to work a lot better. ii)Danish people are all treated equally and must have the same rights, regardless of their social or ethnic background. Ankit sha