Challenges Faced by IKEA

Challenges Faced by IKEA IKEA is a house furnishing store that have been franchise store. IKEA was firstly opened in Sweden, the owner and franchiser of IKEA is from Netherlands and store in almost in 31 countries. Their business concept is We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. This source is adapted from IKEA provides catalogue and visiting store for customer so its very easy for customer to choose the furniture and pick it up from the self warehouse. Today customization and new product in market is very important due to customer demanding for more and consumer market is changing faster. (Cox and Alam 1998) IKEA has strong ideas in customizing its product to suit the tastes of local markets because IKEA does all the analysis before venture to other country markets. (Cox and Alam 1998). Initially IKEA was not interested in customizing their product but went enter us market IKEA faces customer indifferences so eventually IKEA decided to customize their product. The reason why today we are discussing about IKEA is because for the first time in history an ordinary furnishing retail shop have been franchise all over the world and become very famous among everyone. (Cox and Alam 1998). Due to that we are going to analysis about IKEAs product and promotion to know their secret of success. The typical IKEA customer is young and low to middle income family and in another word can say as that is IKEA target customer. Marketing mix is has 4 ps: place (distribution), promotion, price and product, three extended marketing mix are people, process and physical evidence. According to Philip Kotler (2006) marketing mix a modern marketing system. This concept helps marketers to market the product more systematically. (Armstrong and Kotler 2006). Product strategy begins from marketing mix. (Armstrong and Kotler 2006). Product is goods that a company wants to sell. (Armstrong and Kotler 2006) IKEA produce almost everything that people need for a home. (Armstrong and Kotler 2006). HISTORY OF IKEA The year IKEA was established in 1943 by Ingvar kamprad to sell, pens, wallets and so on. In year 1958, IKEA grew and was introduced as a leader of Swedish Furniture and started to produce local furniture by local manufacturers. Later creating furniture for flat packs and self-assembly to reduce storage space. IKEA slowly expanded their business by opening up kitchenware and restaurant. The largest furniture IKEA display was in Scandinavia and the first store to be open was in Almhult, Sweden. From there IKEA develeoped by opening more stores in other countries such as Germany, Norway and so forth. The advantages of IKEA selling the product in other countries: less-expensive so customer will afford to buy the product according to the country they are located. There are 279 IKEA stores all over the world and IKEA is store in 36 countries. In 279 stores, IKEA group owns 247 stores in 24 countries and the rest is managed by franchise in 16 countries. In Asia IKEA groups only two stores they are located at Japan and China. The first country that IKEA considered to enter was Japan. Because of differences in mentality, culture, lifestyle, behavior and so on, IKEA faceed failure in Japan. In 1986 IKEA needed to shut down their store in Japan because of failure, they re-entered the market again after two years and opened 3 stores in Japan. The second country that IKEA decided to enter in Asia was China. Almost 6 stores had been opened in China and IKEA decided to open more in the future. IKEA provides abundant resources, cheap labor and invest in China market because to comfort for its investment. Due to bureaucracy system there are some challenges IKEA faces, high tax and so on. IKEA also creates an enterprise myth and become biggest furniture retail in world. Even though Japan and china located in Asia but Japan have unique characteristics. Since Japan needs an adaptation IKEA entered twice in Japanese market in order to establish their market. CORE OBJECTIVES, GOALS AND VISION OF IKEA IKEAs main objective is to invest and expand their business while maximize profit in return. IKEA also ensure that catalogue is distribute to the targeted people, so that they can become IKEA customer in terms of demographic attributes and they might travel to the store. The IKEAs vision is to create everyday life for many people everyday life for the many people. IKEAs goal is to produce or offer a wide range of well designed product, functional home furnishing product, interior and so on in a low price so many people will be afford to buy their products. On top of that IKEA trying level best to build up a good relationship with the customer and come up with funny strategy to attract customer. Basically IKEAs concept is to sell good product in a low price. Challenges faced by IKEA in international environment Furniture from Sweden is sold in the USA  is relatively higher even though the price of Sweden drop every year so IKEA is finding a solution for it, shipping from Europe to other country takes around 1 to 2 months and shipping cost is expensive. Countries like Japan IKEA have to customize the product and packaging according to their taste because previously when IKEA come up with standardization IKEA fails so to overcome this they now maintaining standardization, economy concern by rising living costs and depleting disposable income its a treat on performance of the IKEA business in u.k and u.s.a market specifically. By expand their business abroad IKEA has increase competition for international business and lot of competitor so IKEA had customize and standardize their product to attract the customer but the same IKEA also have to learnt other country market in order to compete wit them. IKEA business is successful in Europe, but it has met lots of challenges in the Chinese market. After 8 years entering into Chinese market, it has opened only 4 shops, and the sales portion in the Chinese market is less than 10% of its outlets. IKEA has been encountered in lot of problems when entering into the market especially developing countries. Product The product is anything that satisfies our want or need and product that can be marketed is including physical goods, services and so on. (Philip Kotler). The product decision also included aspects such as delivery arrangement financing warehousing and things that useful for people. (Philip Kotler) According to IKEA management they did not did any differentiations in their product ranges and way they conduct when going international especially on French and Chinese market. (E. Lewis; Cyan Communications) .Product in Swedish and France, there is no major differences between products. (E. Lewis; Cyan Communications)In a research the author found out that all of those products were same for example kitchen and dining room, living room, bedroom, the house organization, decoration, lighting, and so forth. Comparing catalogues in different countries the catalogues was almost same and only two dissimilarities was found is: The French catalogue offers cupboards is much more variety of size than Swedish catalogue. (E. Lewis; Cyan Communications) The French catalogue presents wider range of available to purchase mattresses. (E. Lewis; Cyan Communications) The Chinese catalogues have been divided into 5 categories in order to increase purchase and increase number of localized product in Chinese market. (Bjà ¶rk, 2000, Lewis, 2005) It is it is obvious that localized product is more in Chinese market for example kitchen wares as chopsticks, Chinese textile and so on. (E. Lewis; Cyan Communications) Product range is wider in china compare to Sweden and France, during any festival or special occasions IKEA introduce new product in china. (Thrane Carlsen, 2005) IKEA keeps flat packaging strategy and democratic design (function + design + low price = democratic design) strategy on market every market. (E. Lewis; Cyan Communications) The product line of IKEA has been considered in every situation as the IKEA identify and also the product concept is given IOS which means IKEA of Sweden. (E. Lewis; Cyan Communications). All the product of IKEA which have been selling all over the world is conformed to the European Union (eu) and national norms in order to maintain the quality standard. (E. Lewis; Cyan Communications) IKEA with Skanska offer not only product but apartment and furnished by IKEA products. (E. Lewis; Cyan Communications). IKEA sells most the product with the same standards because management and communication models wants to expand the same image of Sweden to worldwide. (E. Lewis; Cyan Communications). IKEA has to introduce much more localized products into the Chinese market and reduce the price because its relatively higher than domestic furniture products in China. (E. Lewis; Cyan Communications) .Due to Chinese market are relatively low cultural content and much more dimensions so more localized products are introduced to the Chinese market. (E. Lewis; Cyan Communications) When IKEA sells product to the French market, they must be very careful because French people has high taste of art, and take serious consideration of product design, color shade and so on. (E. Lewis; Cyan Communications). IKEA until t oday could maintain their product standard because they manufacture and produce their own product. (E. Lewis; Cyan Communications) IKEA only picks good timber in order to produce furniture and pick the best raw material to produce product and also can say as this is the secret of IKEA product. (E. Lewis; Cyan Communications) PROMOTION The function of promotion is to attract customer behavior in order to close the deal or sale. (Neil H.Bordens).The way to promote is trough advertisement, sales promotion, public promotion and etc. (Neil H.Bordens).IKEA does not spend that much in promotion but yet they try to use all the time different communication forms to advertise and promote their furniture and so on. (E. Lewis; Cyan Communications). Apart from that maybe can find media advertising via television and internet, IKEA catalogue advertisement, like IKEA bedroom-car riding all over USA or big square and so on. (E. Lewis; Cyan Communications). The brand IKEA is kept on three markets as every product is sold under IKEA brand, the registered trademark at the world dimension. (E. Lewis; Cyan Communications). This brand appears in every product and packaging. (E. Lewis; Cyan Communications). In china IKEA first time used media to make promotion by playing 8-minute TV show. (Thrane Carlsen, 2005). All IKEA products could be viewed in catalog or website but must purchase in the store, for Chinese customer furniture are directly delivered to home for free. (Thrane Carlsen, 2005) Basically IKEA come with this catalogue and so on is for family-orientation and IKEAs policy of comfortable home. (E. Lewis; Cyan Communications). IKEA have come up with different design of catalogue in different country according to their lifestyle and environment and so on. (E. Lewis; Cyan Communications).IKEA has completely different way of communicate with its customer. (E. Lewis; Cyan Communications).IKEA Mostly advertises in website and present not only furniture but also involvement latest design of computer science that they have used to attract the customer. (E. Lewis; Cyan Communications).IKEA has undertaken a few adaptations in its product design and sales promotions with different focus according to the feature of target market. (E. Lewis; Cyan Communications). IKEA give a feeling that IKEAs is very close to the cu stomer, because they have trained the staff in that way to maintain a very good relationship with the customer. (E. Lewis; Cyan Communications). By doing this IKEA thinks that is one of the effective ways of marketing and to promote their product to customer. (E. Lewis; Cyan Communications). Price Price means the pricing strategy that be used for a product or service. (E. Lewis; Cyan Communications). The pricing decision should be taken into account profit margin and probable pricing response of competitor in order to compete with them. (E. Lewis; Cyan Communications) The pricing is not only list price but also include discounts, financing and others. Price is one of the most important issues in the process of coming up with ideas, distributing and manufacturing products, designing and so forth. (E. Lewis; Cyan Communications). All the company keeps its strategy of prices by offering wide range of products with stylish design, good quality with reasonable price so people can afford to buy it.usuniers argument is about the culture influence on pricing is a bit weak. (E. Lewis; Cyan Communications).IKEAs pricing policy is cost oriented as well as customer value oriented but its not necessarily culture based. (E. Lewis; Cyan Communications).Despite, china situation is not stable due to economical conditions but they seem to be better and better. (Bjà ¶rk, 2000, Lewis, 2005).IKEA try to maintain the prices all over its shop and mostly succeed but not always those following are IKEAs objective for providing furniture in a lower price in different markets: (Bjà ¶rk, 2000, Lewis, 2005) Learn different elements of the production cost for example color of mugs. (Bjà ¶rk, 2000, Lewis, 2005) Find cheap techniques of production or cheaper manufacturers for example in China. (Bjà ¶rk, 2000, Lewis, 2005) Rduce additional cost in the production, the transport and the management, for example to pack products in flat packages. (Bjà ¶rk, 2000, Lewis, 2005). Long-term orientation is one of the core Chinese cultures people are very concern about the quality and price, so IKEA have to come up with reasonable price in Chinese market. (Bjà ¶rk, 2000, Lewis, 2005) However price is not a problem in Europe, as IKEAs product is always of good quality and lower price, so IKEA focus more on sales promotion to gain the market share in Europe. (E. Lewis; Cyan Communications).IKEA designers, manufactures and purchasers still spending most of their days to find a solution to low the price of IKEA product and they wants customer to buy high value product in a cheap price. (E. Lewis; Cyan Communications). CONCLUSION IKEA have franchise their market and also was successful in overseas. In fact IKEA have failed initially before they made it in Japan especially. IKEA have to come up with more strategy and try to venture in more business. They also should open up more IKEAs in overseas and maximize the promotion in order to reach the target customer. Before open up a business IKEA should analysis the country market whether adaption or standardization to be applied in the particular country so that the company will never face failure. From the analysis, it shows that IKEA has strong relationship of network structure, large number and customer in worldwide to internationalize. Actually in a market survey on target customer everyone says that no any command on IKEAs product because their quality of product is very good and worth of buying it and also last for many years. IKEA products are affected in abroad market because of cultural factors and political factors. For example Japan people doesnt like i nternational product and got to customize the product. Political factors are affected like there is some barriers in some countries that standardization packaging is not allowed and they have change the packagings due to this IKEA have to spend allowed. RECOMMENDATION IKEA have to always pre-planned and alert with market situation and move forward in order to ovoid unnecessary cost. They have to come with a strong strategy so that other competitor can beat up their market. IKEA is very confident that their quality of product is very good and competitors cannot compete with but IKEA but mustnt be like that because nowadays cant predict or underestimate about competitor. IKEA always must be ready to face consequence or either successful. IKEA also should promote more their product and organize lot of event in order to make the brand more popular among people. IKEA must give lot of sponsor of charity, sports and all in order to attract customer. The best ways in distribute flyers, article and so on about IKEA products and how good quality products they are using for example.

Le Petit Chef Case

Le Petit Chef Case 1) What should Gagne do? Specifically, which projects should she fund and why? How should she handle the executive meeting? A fair assessment of the situation at Le Petit Chef is that there are far too many projects on the table. This overflow has led to missed deadlines and therefore missed profit. The gap between LPC and other microwave manufacturers is closing fast and action is required. Essentially, Le Petit Chef needs a cornerstone development.There are five proposed projects: A new intelligent (fuzzy logic) line of microwaves, a low-cost version of an existing microwave line, an entirely new low-cost line, a quick heating model, and a larger cavity Liberte. When choosing which projects to fund, Gagne must evaluate them on three basic criteria: will this project differentiate one product from the next? Will this project spread the r&d team too thin? , and will this project provide a competitive advantage? For the short term, LPC should not attempt to enter th e low-cost microwave market.Le Petit Chef is correlated with high end, high performance appliances and trying to tackle a low cost market that is dominated by large companies such as Samsung and GE would not be appropriate. Because of this, both projects associated with a low end line should be crossed off Gagne’s list. However, perhaps in the future when the company is on more solid footing a low-end line can be attempted. Adding a larger cavity to the Liberte should also be cut because this just adds another component into the mix.Too many components that don’t overlap from one product to the next increases total cost and adaptability. Another reason to cut the larger cavity is because it really does nothing major to differentiate the product. Next, LPC should fund the implementation of a Fuzzy Logic microwave line. This would differentiate the product among high-end competitors, not put too much strain on r&d according to a senior design engineer, and promote the hi gh-class label associated with Le Petit Chef. This project is absolutely necessary to undertake.Another project that should be funded is the development of a â€Å"Liberte-express† with a more powerful magnetron. This adds another vital differentiating feature, will be easy to develop, and be finished relatively quickly (6 months). At the meeting, Gagne simply needs to list the facts to the executives since there shouldn’t be too much convincing to do. She needs to present her product choices listed above rationally and stress the need for the company to stay true to its reputation by focusing on high-end appliances.She needs to alert the execs about how thin r&d is spread and she should probably prepare a list of projects that could be easily axed. She needs to stress the importance of allowing r&d to focus on less projects. The primary theme of her presentation should be realigning Le Petit Chef as the frontrunner in the microwave business. She also needs to outline the current financial issues and how the proposed projects will affect them. 2) What factors explain Le Petit Chef’s poor performance? What actions would you recommend to remedy the situation?Le Petit Chef’s poor performance can be largely attributed to the recent influx of competition from abroad. Essentially, the Asian manufacturers such as Samsung and Sharp infiltrated the low-end market which in turn forced European microwave companies to move into the previously Le Petit Chef dominated high end market. One statistic that basically tells the entire story is that the price of the microwave oven had dropped by 10% each year from 1996 to 2000. In an attempt to ward off competition, LPC spent hefty sums in advertising. This was overkill and caused financial issues.Another key factor was the r&d team being spread so thinly across so many products. Exhibit 9 highlights this by showing the products branching out in an almost ridiculous manner. Quite frankly, LPC needs to reduce its projects. In order to remedy the situation, LPC needs to do a handful of things. First, they need to realize that they cannot compete with the large foreign companies. Therefore, any thoughts of entering the low-cost market should be heavily discouraged. LPC has a niche in the high end market and they need to stick to their guns.By focusing on the high end marked, R&D is also not as overextended. Next, LPC needs to differentiate their products from the competition. They need to give the buyer some incentive to fork over more cash for their expensive microwaves. Another thing that LPC should try to do is to make more components that are interchangeable between models in order to lower costs. LPC should also focus on the appearance of their microwaves, because to sell a high-end product it has to appear that way. Essentially, the appearance is the ultimate differentiating factor.

Health Care Communication Methods Essay

Communication Coordinators manage their company’s communication strategies. This includes internal (coworkers) and external (public) communication methods. They are in charge of releasing information and responding to any inquiries regarding the information. Communication Coordinators also manage event planning, communication budgets, and social media outlets. For this paper, I will assume the role of Communications Coordinator for a national drug manufacturer named â€Å"Pharmaco†. One of our medications at Pharmaco has recently been reported to cause significant negative effects among those prescribed. The medicine known as â€Å"Olaz† is prescribed to a large number of people. To make matters worse, there have been reports that a well-known public figure is counted amongst the effected. Negative feedback from this figure could lower the public opinion of Pharmaco and damage the company’s credibility. As Communications Coordinator, I am tasked with the r esponsibility of addressing news reports and the general public regarding the situation. Communication comes in a variety of forms including traditional, electronic, and social media. These forms all have their advantages and disadvantages. Each form must also adhere to rules and regulations such as the Health Information Portability and Accountability Act (HIPAA). Traditional media encompasses a wide range of communication mediums. This includes newspapers, magazines, outdoor billboards, direct mail, radio, and television. Most of the population will at least encounter one of these mediums during their day. Traditional media is advantageous because all of the mediums are one way forms of communication. This would give Pharmaco the ability to send a message to the public, without having to answer any questions immediately. While public interaction is inevitable, traditional media would allow time in-between delivery and feedback. This would give Pharmaco time to collect and prepare for public interaction. With traditional media it would also be fairly easy to adhere to H IPAA regulations because all the information delivered is scripted. Pharmaco  would have plenty of time to review the information and check for errors. This reduces the possibility of giving private information to the public. The disadvantage of traditional media is closely related to its advantages. Time in-between delivery and feedback can be costly. During this time the public could use other forms of media to discuss Pharmaco. Without the ability to defend itself, negative public opinion could increase. This in turn brings us to our next media type. Electronic media is a more advanced form of communication compared to traditional. It is also more interactive than traditional media. The most common form of electronic or â€Å"digital† media, is the internet. The internet is often utilized similarly to traditional media. Electronic media is advantageous because of the ever growing popularity and usage of the internet. People are now accessing the internet in the home through a fast-growing range of games consoles and Wi-Fi enabled tablets, smartphones and laptops, giving rise to a trend of â€Å"multi-screening† (Internet Usage on Rise, 2014). Broadcasting information with electronic media would extend Pharmaco’s audience. More people could be reached. Plus, it would be easy to keep information updated. Of course, it should be remembered that this type of media allows the public to be more interactive. Pharmaco must be aware of those who use computers to collect private material; hackers. We can create our own website that will allow us to interact with the public, however there is a potential for hackers who would aim at stealing our private information. They could even manipulate our site into giving out incorrect information. Furthermore, providers are subject to far more rigorous guidelines when patient history information is in electronic form (HIPAA Compliance, 2003). If we choose to use electronic media, it will be imperative to protect private information. This way we can abide by HIPAA regulations. If Pharmaco’s website is compromised, then there is the possibility that patient information could be a s well. Pharmaco should also consider social media. Social media is interaction between the public that takes place in virtual communities or networks. Two of the largest used social media websites on the internet are Facebook and Twitter. Both of the mediums allow users to stay in constant connection with one another. With social media Pharmaco would not have to worry about digital storage of its information. Everything we would want to express would be stored on someone else’s network. Social media would also allow us to stay  in constant contact with those that â€Å"follow† or â€Å"subscribe† to us. This is advantageous because it would give us the ability to instantly address public concerns. Coincidentally, the disadvantage of social media is the need for constant reviewing and updating. Furthermore, as with all forms of media, HIPAA regulations must be kept in mind. If we choose to use social media, HIPAA compliance must be addressed so that our company does not commit a violation. Patients should understand that personal health information should never be posted. Considering all the information that h as been reviewed, I suggest that Pharmaco utilize traditional and social media. First and foremost, the public needs to be addressed. A statement should be given to the press. The statement should let the public know that we are aware of the reports. It should also contain a sincere apology to all those who affected by our medication. The message should also inform the public that we are doing all we can to correct the situation. We should also have a forum where the public can go to ask questions. This is where I suggest social media. I believe Twitter would be the best way to go about this. Twitter would allow us to be brief and stay in constant connection with the public. It’s important for the public to feel as if we are always available. I also think it is best not to have a means of personal electronic media (website). All the information that could be related on our website can be just as easily relayed on social media. Furthermore, I find it beneficial to not broadcast a public address (I.P. address). This would only act as a gateway for a system that would ultimately be connected to our patient health records. With social media key staff should be selected to serve as the program’s page administrators; these people will be the gatekeepers for access to the program’s page (Walters-Salas, E., 2012). I also suggest that updates only be done twice or three times a day. This will allow us to control the conversation, rather than being continuously dominated by the public. Plus, it will allow page administrators the time to perform their normal tasks. In regards to the well-known public figure, we should not mention them in any of our communications. Patient information is private for everyone. We also don’t want to appear bias or more concerned with a single person’s condition. Our messages should constantly address those affected as a collective whole. I believe that this strategy is the best way to address this issue. I have identified the advantages and disadvantages of traditional, electronic, and social media. Private information and HIPAA regulations have also been addressed. My reasons for selecting my strategy has also been stated. This is a delicate scenario and it’s important that Pharmaco address it appropriately. References Bendix, J., M.A. (2013). New HIPAA rules. Medical Economics, 90(9), 14-16,18-20. Retrieved from http://search.proquest.com/docview/1370703200?accountid=458 Brown, J. (2013). How to master electronic communication with patients. Medical Economics, 90(7), 60-2, 64-7. Retrieved from http://search.proquest.com/docview/1367086304?accountid=458 Du Pre, A. (2004). Communicating About Health (2nd ed.). Boston, MA: McGraw Hill HIPAA compliance. (2003). Corrections Forum, 12(1), 15-16. Retrieved from http://search.proquest.com/docview/214412170?accountid=458 Internet usage on rise. (2014, Jun 25). The Advocate Retrieved from http://search.proquest.com/docview/1539432736?accountid=458 Walters-Salas, E. (2012). Social media and HIPAA compliance. Bariatric Nursing and Surgical Patient Care, 7(2), 85-86. doi:http://dx.doi.org/10.1089/bar.2012.9984 Weinstock, B. (2003). HIPAA and computer security. PT, 11(7), 30-33. Retrieved from http://search.proquest.com/docview/216821722?accountid=458 Wendling, C. (2013). The use of social media in risk and crisis communication. (). Paris: Organization for Economic Cooperation and Development (OECD). Retrieved from http://search.proquest.com/docview/1468437071?accountid=458

Analysis Of The Movie Boy - 814 Words

Year 11 English: AS 90854 (1.10) Form personal response to independently read texts, supported by evidence. Reading Response 4 Title: Boy Director: Taika Waititi Text Type: Film A character that I liked while watching the film was Boy. For an 11 year-old boy, Boy has a fantastic imagination and is always optimistic. From what we see in the movie, Boy has had a difficult life but only when it comes to his parents. Other than that his life is all right. In some ways I can relate to Boy because his father doesn’t live with him and neither does mine, but he is always optimistic that his father will come back and see him. Boy lives with is grandmother and 5 other kids. When his grandmother goes away to a funeral, Boy becomes in charge of the house and everyone inside it, every night he cooks them meals and puts them to bed. I find this quite admirable of Boy because he doesn’t have to do it if he doesn’t want to, but it is his responsibility so he does it. Also when his father arrives home with his two friends, Boy does the polite thing and offers them a cup of tea, â€Å"would you fellas like a cuppa tea?† This shows that even for a y oung age Boy is already quite grown up and knows how to treat company. I admire Boy because later on in the film, the father does something that hurts Boy a lot and then for Rocky’s sake, who is Boy’s younger brother, he forgives his father because Rocky still thinks that his father is cool, even if Boy doesn’t and Boy doesn’t want to ruin that forShow MoreRelatedAnalysis Of Bad Boys Movie969 Words   |  4 Pages1. Cops (tv show) Cops is known for the Bad Boys theme song. It first aired on March 11, 1989 and it showed on the Fox network. Cops showed pretty much what the police officers, constables and sheriffs deputies patrolling streets go through. They come across car thieves, drug pushers, sex-trade workers, and violent thugs. They put cameras on real officers and send them out. 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