Recommendations of Ikeas Global Marketing Strategy Case Solution

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Recommendations of Ikeas Global Marketing Strategy Case Study Solution

On the basis of above internal and external analysis of the business along with the assessment of various options, the business is advised to consider alternative 3. As alternative 3 would permit the business to expand in worldwide markets without any reduction in its local profits and any degeneration of its market position. The business could pursue alternative 1 which would make it possible for the business to focus on prospective international markets rather than the regional markets but as the business is highly reliant on the regional markets with 90% of its shops in the United States, there fore pursuing alternative 1 would result in the significant decrease in business's earnings.

Aletrnative-1: Expanding International Brick and Recommendations of Ikeas Global Marketing Strategy Case Analysis Stores

The company has a long term market position in US which can not be produced soon in the brand-new markets. The option would assist the business to expand in international markets along with the elimination of concerns raised in its local markets related to its diversity.

Pros:

• Expedition of brand-new worldwide markets.
• Increase in revenue from global markets.
• Elimination of problems connected to variety.
• Revenue diversification.
• Step towards being a strong international brand name.

Cons:

• Loss of extensive incomes from the regional markets.
• Increase in competition.
• Differences in cultures could resulted in a failure of the brand name especially in Asian nations.
• Low profits at initial levels.
• Increase in marketing expenses to acquire market share.

Alternative-2: Introduction of Click and Recommendations of Ikeas Global Marketing Strategy Case Solution Stores

Alternative 2 consists of the introduction of online market places through generating a proper company's website. With the increased patterns towards online shopping, the online shops like Amazon, Alibaba and so on might position an extreme danger to the market share of business. Additionally, the rivals are shifting towards click and Recommendations of Ikeas Global Marketing Strategy Case Help shops with Gap presenting Piperline. This shift towards online markets might lower the incomes for business. In this scenario the business could think about presenting Click and Recommendations of Ikeas Global Marketing Strategy Case Analysis shops. These stores with a low requirement of funds to settle would allow the company to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low investment
• Reducing competitors risk
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy brand-new market entrance

Cons:

• Danger to the marketplace position
• Removal of brand Individuality
• Elimination of the excellent store experience.
• Threat of decline in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another choice that the company might consider, is to broaden towards the global markets without closing its domestic shops that contributes to the major part of incomes of the company. The benefits and drawbacks associated with Alternative 3 are offered listed below;

Pros:

• Decreasing competitors risk
• Access to the world markets
• Expanding consumer base
• Large Profits
• Expedition of brand-new global markets.
• Boost in income from global markets.
• Revenue diversity.
• Action towards being a strong global brand.

Cons:

• Continuation of concerns connected to diversity.
• Differences in cultures might resulted in a failure of the brand specifically in Asian countries.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.



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