IKEA Internationalization Strategy Essay Example | Topics and Well Written Essays - 750 words

IKEA Internationalization Strategy - Essay Example Ikea was not always an internationally recognized retailer even though in 1973 they become one of the best and major furnishing house in Scandinavia however, the founding members aimed to make the business grow globally. Since the foundation of the company in 1943, the founders have incorporated foolproof strategies to help in the growth of the business. IKEA’s founders were well aware of the fact that the implementation of business strategies have to be relevant to the consumer demands and might vary depending on the country they are launching the store in. The idea was not only to expand the business but also make sure that the companies come across as the iconic furnishing house that is highly consumer friendly. The makers were already sure about the quality of the products which was definitely world class, the major manufacturer of the products was done in Poland which proved to be 50% cheaper than it would have cost otherwise and taken full advantage of this, this extrava gant furniture company develop a very strong and fruitful strategy to expand the business. ... e expansion of the business was extremely fast-paced, IKEA came up with other consumer-friendly offers such as a lounge for food and wine within the store itself, this definitely helps the company to generate revenue faster internationally. However, it was in 1990 that IKEA realized that there is an immense requirement for some fruitful and modern business strategies since over the years many other furnishing business owners had stepped up the market giving IKEA a very tough competition. In order to make sure the company expansion took place rapidly the makes had almost forgotten to pay attention towards the products itself. They were selling most European styles furniture which seemed to be less preferred by American and Canadian. The furniture was simply not functional for them which was one of the biggest drawbacks. It was high time for IKEA to take some decisive action to help maintain the expansion of the company. IKEA decided to shift the tactics by redesigning the products acc ording to the demands of American consumers, pretty soon the company was able to regain its position in the marketplace by becoming the second largest furnishing house in the United States in 2008. IKEA International Business Strategy IKEA being a well established Sweden furnishing house aimed to grow the business internationally and it appears to be that IKEA took the biggest business risk by implementing the Global standardization strategy. Most business owners might not think of this strategy worthy of prior consideration but IKEA took a chance on it, their vital goal was not only to expand the business globally but make sure they earn the loyalty of the customers.