KEY ISSUES

IN IKEA

1
FIRST KEY ISSUE
- Shipping furniture's from Europe
countries to other countries take
1-2 months
- Shipping cost is high
SECOND KEY
ISSUE
- IKEA in Japan has to follow
adaptation concept
- According to the cultures of
Japanese
THIRD KEY ISSUE
- In economic view, the rising
living costs and depleting
disposable income is a treat for
IKEA
- Especially in businesses in UK
and USA market
FOURTH KEY
ISSUE
- IKEA increased competition
globally
- Walmart, Amazon & Tesco
- IKEA had customized and
standardize their product to
attract the customer
FIFTH KEY ISSUE
- Challenges in China Market
- Sales portion in the Chinese
market is less than 10% of its
outlets
- Only 4 shops opened in 8 years
RECOMMENDATIONS
- IKEA must engage in Corporate
Social Responsibilities (CSR)
 QUESTION 2
At the end of Chapter 11, it was noted that managers of IKEA stores have a great
deal of discretion when it comes to setting prices. In terms of the (EPRG)
framework, which management orientation is in evidence at IKEA?

Polycentric - IKEA believes each country is unique

- Polycentric pricing permits subsidiary or
Management affiliate managers or independent distributors
to establish whatever price they feel is most
Orientation appropriate in their market
environment”(Chapter 11, 368)

08