Question

Can you please help me with the case discussion questions, as well as

4. Using the case material, explain how IKEA has shifted strategy aligning to specific strategies outlined in the chapter. Which one did it begin with and where are they now and why?

Answer 1

1. If you are a global company, it is not wise to be too centric to a specific country. This is because when you are focusing on different parts of the world, you should be adjusted as per the tastes and preferences of the local people. This is GLOCAL strategy, which means that the products and price should be as per the tastes and preferences and the affordability to the customers. The chances of the sale of the products which are customised is much higher.2.

2. This can sell in the market as the product as well as furniture theme is today's market is about customisation. The seller or the suppler needs to be highly flexible in terms of furniture design and provide the goods as well as the services as per the customers tastes. Gone are the days of Hindustan Motors and BSNL, where they were not ready to go for customisation and got completely vanished from the market. thus customisation is essential be able to sell more products.

3. Ikea's global suppliers can be managed through effective communication system. Thus all the stages of the supply chain are all connected and real time information is being shared. Due to connectivity, the suppliers across the globe can be managed well.

4. When Ikea entered in US market, they were highly rigid and was not ready to offer customisation. the strategy adopted by them in Sweden was followed in US market as well and was a big failure. But when they entered the China market, they bring out customisation and align the strategy as per the tastes and preferences of the customers. Thus they were highly successful as they moved from Global strategy to GLOCAL strategy.