Question

1. Identify the competitive advantage of IKEA and discuss why it’s global marketing has been so successful. (8 marks)

Answer 1

The competitive advantage of IKEA are having the low price, good quality, greater service, increased quality of design and offering wider varieties. It is achieved by using catalog for the advertisements and promotional activities. Using the scale effect (to have the lower cost), efficient use of logistics, and continuous development of the new products. In IKEA, a special group is associated to perform the market research and develop new products using new technology by promoting advancement in the developmental activities. IKEA has improved upon the public reputation and by using model of chain for their operations. The global marketing of IKEA is successful as it has targeted global middle class market segment and potential customers, by aiming on the vision of affordability factor. Also, offering good quality product on low prices to their significant customers and maintaining wide customer base for their products. Therefore, keeping the customer centric marketing strategy helped IKEA to have success.