discussion 2 Mark

.docx

School

University of Texas, Rio Grande Valley *

*We aren’t endorsed by this school

Course

6310

Subject

Marketing

Date

May 8, 2024

Type

docx

Pages

2

Uploaded by daisy.galindo01 on coursehero.com

1. Based on the information provided in the case study, discuss in detail how the different micro and macro environmental factors affect IKEA’s expansion in the US market (see chapter 4 ppt slides for all micro/macro factors). Discuss as many micro and macro environmental factors as you can, not just one or two. The different micro, and macro environmental factors affect the IKEA’s expansion in the United States are as explained: Microenviromental: Company- IKEA is a large home décor and retail market, whose brand recognition is highly important for the growth strategy. The company’s marketing strategies, financial strength and, marketing abilities will have an impact on the performance in the Unites States market Suppliers: IKEA initially gets their raw materials from different suppliers around the world. These distributions could also have an impact on the company’s operations in the United States market. Marketing Intermediaries: Due to IKEA working with different marketing intermediates, such as logistical providers, public relation business, and agencies for ads. With this there will be a positive impact on the company’s marketing initiatives and the company’s distribution performance. Customers: The expansion of IKEA in the United Sates would be due to the product demand. The company is to understand and obtain information of the demands of the American Customers. Competitors: As for competitors IKEA is currently up against all other retail home décor stores in the united states; new and older companies. In order to remain in the position to be competed against IKEA should consider pricing, marketing activities of other competition, and product offerings. Publics: The public image of IKEA is very crucial, they do a great job in maintaining a socially conscious public perception on their company. IKEA’s social responsibility, ethical, and environmental activities can impact the success in the United States. Ikea prioritizes their reputation as it their public image is an important factor for the expansion strategy. Macroenvironment: Demographic plays an important role in Ikea’s expansion strategy. Such as the location of the IKEA store would determinate what products that certain demographic would want, high income households will be looking for high end furniture and low income household will be looking for affordable furniture. Natural resources those of which include climate change and environmental restrictions could all have effect on the company’s expansion on in the United States. Using sustainable products could attract customers that are environmentally concerned and increase sales.
Technological: Technology such as social media that plays a large role in social networking. Mobile apps are taking over the convenience of customers and how customers shop. IKEA should capitalize on technology to stay in competition with other companies Political considerations are highly important as not all rules and regulations are the same in every country. This of which could have a positive or negative impact on IKEA’s expansion strategy. The company must successfully follow all rules to prevent any issues. Cultural elements due to the United States being a mix of different cultures it is important for IKEA to accommodate to the societal beliefs, and attitudes as this could easily affect the expansion strategy. The company should accommodate pricings, and marketing techniques.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help