Marketing & Management of IKEA in Singapore

Question: Discuss about the Marketing Management of IKEA in Singapore. Answer: Internal Analysis: The competitive advantage of IKEA is its unique way of manufacturing or designing of its products. The products are mainly designed in a way that reflects the fresh and clean Swedish lines. The designs of IKEA furniture might appear simple, but over the years it has been the trademark of the company. They are hard to imitate and the company has always focused on differentiating its products from its rivals like West Elm, Bath Beyond through exclusive designs and high quality, but at affordable price[1]. Such is the design of its products that not everybody is favoring them, though the company has been successful in recognizing its target market and position its products in a way that is easily accessible to its target customers. One of the main strengths of the company in the Singaporean market is its way of designing its products and finding out the right suppliers for channelizing the same. It assists the organization in knowing at what point price it would be able to release its product into the market, along with the margin and cost forecasting. The company aims to find the kind of suppliers that would be a real booster for the company. The company also believes in lowering the cost of its products in an attempt to ascertain the product lineup precedence. It studies the market, surveys the competition for setting a price point that is generally 30-40% below to that of its competitors. It is also on the lookout for suppliers that offer them raw materials at low price, which indicates its idea of improving its margin through lowering the cost. IKEA has been a company that is consumer oriented and it has continuously engaged itself in researching about the lifestyles of company, the benefits customers prefer out of their household endowments. For instance, IKEAs key market in Singapore has been the many people instead of the very privileged few, a principal apprehension being furniture design offering solutions for people living in tiny, compressed homes. IKEAs designed furniture is generally driven by consumers obligations. External Analysis (PESTLE): Politics Economical Social Technological Legal Environmental -Government taxation policy -Employment Laws -Trade Union involvement -Economic recession -Inflation rates -Offering high-end products -Low price -Benefits to employees -Up-to-date website containing all information -Online stock availability check -Laws and regulations in the country -Better usage of raw materials -Helps keeping down cost Economic: IKEA, due to the economical trends and changes have been adopting various sorts of strategies that would take a demand on their customer base and aim towards winning the loyalty of Singaporean customers. IKEAs strength grew from the transfer of ownership to Stitching Ingka that made the organization espouse other styles of furniture like lightings, dinnerware and rugs[2]. However, the economic condition existing in Singapore slowed down the market performance of IKEA. IKEA needs to be careful in evaluating important issues involving any business aspects and act as per the needs[3]. Social: IKEA has put in a lot into the Singapore society offering opportunities for people with employees entitling various benefits like pensions and insurance. Moreover, IKEA promises to offer high-class furniture sticking to their unique perception- low price offering for stylish furniture. Technological: IKEA makes use of excellent technology and systems for offering appropriate scheduling, patterns of trading and staffing. It directs its aims towards being more creative along with establishing preferences of employees. Evolving of technology would witness IKEA continuously upgrading its technological aspect for keeping pace with its international networks with suppliers and distributors. Reference: Harapiak, C., 2013. IKEA's International Expansion. Jonsson, P., Rudberg, M. and Holmberg, S., 2013. Centralised supply chain planning at IKEA.Supply Chain Management: An International Journal,18(3), pp.337-350. Komassi, E. and Pal, R., 2015[4].Investigating short term strategies in product sustainability index implementation, a case study at IKEA. Universittsverlag der TU Berlin. Nigam, S. and D jain, A.A.D.I.T., 2017. digital marketing campaigns by furniture retailers to generate online and offline sales: with specific reference to ikea, pepperfry and urbanladder.International Educational Scientific Research Journal,3(1). Jonsson, P., Rudberg, M. and Holmberg, S., 2013 Komassi, E. and Pal, R., 2015 Harapiak, C., 2013