1. Case Analysis Jacob Babcock Jared Kohn Nick McCarthy Mike Russell

2. IKEA Background Ingvar Kamprad-1943-Sweden Top retailer of furniture, home furnishings, & house wares Standardized product strategy Cost leadership secured by contract manufacturers

3. Main Issue As IKEA grows, how do they continue to expand internationally and spread the IKEA concept to as many consumers as possible with the main focus on success in America?

4. IKEA SWOT Strengths Weaknesses Brand Recognition Marketing Strategy Stylish products at mass market pricing Value-added services - installment, daycare, restaurants, etc. Privately owned (restricts capital) Stores require expansive locations Standardized products

5. IKEA SWOT Opportunities Threats International expansion Introduce smaller stores Product adaptation (acculturation-Ch. 3) Expanded environmental involvement Competition (direct &indirect) Global regulatory environments - Affects product costs, shipping prices, etc.

7. Analysis of Alternatives Scale 1-5

8. Standardization vs. Adaptation Factors encouraging standardization Factors encouraging adaptation Economies of scale in production Economies in marketing Global competition Differing use conditions Government & regulatory influences Differing consumer behavior patterns Local competition True to marketing concept Adapted from exhibit 10.2

9. Recommended Solution Product Adaptation - Focus on developing products that specifically target the market/culture they are sold in

10. Implementation Conduct foreign market opportunity analysis