IKEA’s future strategy to grow globally
The IKEAs future strategy is primarily to empower workers in spirit and remuneration. They have to increase the workforce in their company by a great percentage to ensure customers’ satisfaction all throughout their national and multinational companies worldwide. This includes treating each client and workers alike and as equal partners. One of the ways includes reducing hierarchy in the organization so that service delivery is fast, easy, and friendly.
It also plans to open 20 to 25 stores a year until the end of the decade, rising to 500 in 2020 from 338 today.
The home-based corporate culture developed by IKEA
In order to develop this culture, IKEA has always focussed on the spirit of openness and freedom for every worker in the company. They are quick to admit when they are wrong, and work towards strategies that will enable them resolve any issue arising in their company. IKEA also recruits through values and not credentials, and organize capacity enhancement workshops for their employees. This is in order to maintain the spirit and culture at all levels of employment, through sharing values, strengths, weaknesses and opportunities in their global markets.
IKEA’s global product strategy
One of the IKEAs global strategies is to impose similar store design and product offering all over the world where they have opened stores. This includes price reduction, gives ways whenever a customer purchases a product, and also having the same corporate identity. Another global product strategy has been understanding the culture of each country and making products to suit that culture. Their products are always tailored on customer values and spirit, and this enables them to meet each needs through understanding their customers.
IKEA’s response to the problems faced in some countries
Most of the problems IKEA has been facing are in the management area. Some of the problems have not being able to customize a product to fit the cultural needs of certain countries. For example, they would produce a kitchen too small not to fit a Thanksgiving turkey, or a glass too small for wine as put by Richard Milne. However, IKEA responded swiftly by first apologizing to the communities and then went ahead to change the products so that they can suit local tastes.
IKEA’s success and appraisals at the beginning of every year
If IKEA is to be successful, then the head of marketing has to make sure it appraises its customers and staff at the beginning of each year. This will include analyzing customers’ needs and making sure they meet those needs in the planning of each year. The marketing department should make sure that the culture of togetherness is upheld all the time. They should continue doing capacity enhancement for their staff each year to realize their weaknesses and strengths and improve on it in the New Year. This will ensure the maintenance of core values, mission and vision for the company each year as they begin.