Friday, May 22, 2020

Furnishing the world, assessing the development of Ikea - Free Essay Example

Sample details Pages: 3 Words: 802 Downloads: 6 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Furnishing the world, assessing the development of IKEAs competitiveness using Porters 5 forces Model, Since its origins as a small business selling knives, wallets, picture framings and whatever else its customers required, IKEA founded in 1943 by Ingvar Kamprad has always strived to provide the product at 30-50% less than its competitors. In 1947 furniture was added to their line and in the 62 years since then IKEA has become one of, if not the biggest and most successful furniture company in the world. The company aims to provide its customers well designed and functional furniture at the right price irrespective of the customers geographic location, in fact IKEA aims to provide quality furniture cheaply as opposed to providing cheap furniture. Don’t waste time! Our writers will create an original "Furnishing the world, assessing the development of Ikea" essay for you Create order The companys vision is to create a better everyday life for its target customers, 20-35 year old first homeowners by offering a great selection of well-designed, practical home furnishings. Since IKEA has chosen this sort of affordable and distinctive marketing strategy, the company has been very successful in its expansion throughout the world. Key to this success is the way the company uses Porters 5 Forces model covering the following areas, detriment of supplier power, threat of new entrants, rivalry among existing firms, detriments of buyer power, and the threat of substitute products. IKEA meets these problems head on. By carrying out a SWOT analysis it becomes clear that IKEAs major strength is in its size and the cost savings it makes through economies of scale, it can offer a massive boost to local economies in employment, it currently outsources 90% of its production to low cost suppliers in low labor cost countries close to the raw materials required for its products, then it maximizes its logistical support through shipping and storing all of its offerings as flat pack or ready to assemble furniture. IKEA also have a unique way of pricing their furniture, instead of manufacturing the product at a fixed cost and then marking it up to make a profit, IKEA analyzes the market first and finds out what a particular piece of furniture is selling for. It then drops the price by about 30% and tasks its designers to design a similar offering without sacrificing quality for this price. The designers come up with an innovate design and this design is then given to inno vative suppliers who have the technology and skills required to make this work, and who can offer their products to IKEA at a given price due to the vast number of units being produced. IKEA runs as a franchise and as such has a system of decentralized management in place, this gives IKEA key local market knowledge and especially in local tastes while at the same time the punching power of an international organization. IKEA also keeps costs down by involving the customer, it offers the units flat packed for ease of transport and encourages customers to deliver and assemble the furniture themselves, however it will both deliver and assemble for a separate fee. IKEA does not suffer much by the way of rivalry with other firms as its concept is pretty unique, it works well as most companies cannot do what IKEA does and IKEA does not want to provide furniture in the same way as other retailers. One of IKEAs weaknesses is its standardization of products, although it allows for economies of scale it does not allow for individualism in the customers choice of product, or in variances in regional tastes, as was the case in North America where tastes favored Oak furnishings and ready to assemble furniture was frowned upon and the drawer sizes in its standard offerings were too shallow to store the sweaters Americans had a propensity for. IKEA met this challenge by redesigning their products to suit and by running with the catchy slogan its a big country, someone has to furnish it (International Marketing and Export Management p 215) By 2000, about 30 percent of IKEAs total production output were destined for the U.S. market. This successful strategy brought international sales to $1.38 billion in 2000 from $480 million in 1994. In some stores IKEA has further secured its position from other new entrants and substitute products by offering its repeat customers the service of disposing of any old or damaged IKEA furniture, this coupled with the play areas for children, Coffee shops and good customer service set it apart from the rest of the pack. This formula albeit with minor variances has seen IKEAs continued development around the globe as can be seen from the world map below. References ( International Marketing and Export Management p 215) by Gerald Albaum and Edwin Duer World Map showing locations of IKEA stores in 2007. Green represents countries with stores in operation and blue shows proposed locations taken from https://irwanarfandi.wordpress.com/2008/12/20/ikea-integrated-information-achitecture/ Turnover Chart (taken from IKEA website/facts and figures)

Thursday, May 7, 2020

Key Events in the Reformation - 1111 Words

Thesis Statement: These key events reforming religion are what shaped the world for good and for bad in the 14th to the 19th century. The Reformation was full of war and inventions that many had never seen before, affecting the religious and social political systems in positive and negative ways. The first event in the Reformation was the Printing Press. The Printing Press enabled the circulation of the bible, starting the spread of Christianity and the Catholics. The Printing Press was created by Johannes Gutenberg in 1450. Before the Printing Press the bible had to be printed by hand, which meant that the copies had to be written word for word. Because they had to be written word for word only the important people had them such as Popes†¦show more content†¦There were wars during this Reformation in the 16th and 17th century that took place in many parts of Europe. The first wars took place in central and southern Europe, between the Christians and the Muslims. The Christi ans and the Muslims had been fighting each other ever since the Crusades from the 11th to the 13th century; also in the Spanish Reconquista from the 8th to the 15th century; and the Ottoman Wars in Europe from the 15th to 19th century. The wars that were the longest lasting were the wars between the Protestant and the Catholics. These wars were some of the bloodiest wars in the European wars of religion. The war between the Protestants and Catholics is called the 30 Year’s War which was the longest in the war of religions. The Counter-Reformation came better late than never as they were much needed. The Council of Trent had a major role in the counter. The Council of Trent fought for the Reformers in every way possible. â€Å"The Council of Trent believed in the areas of tradition, original sin, justification, sacraments, the holy masses, and the veneration (honoring) of saints.† The Council of Trent and the Catholics fought to become more spiritual, educated, and lite rate. The reformation was a long and bloody time. There are many ways to look at this time period. Some say it is from the church perspective and say these religions were fighting for what is right. I for sure will beShow MoreRelatedTyndale Bible And The Reformation Of England860 Words   |  4 PagesThe Reformation of England The Reformation of England was a very important, yet difficult time, in history. According to Hughes Oliphant Old, author of The Reading and Preaching of the Scriptures in the Worship of the Christian, â€Å"The Reformation in England obviously pressed for a variety of changes that affected the whole life of the nation† (Old, 2002) There are many people and experiences that influenced this Reformation in English history. One of the biggest influences on The Reformation wasRead MoreIn Class We Have Spent A Lot Of Time Learning And Discussing1100 Words   |  5 PagesIn class we have spent a lot of time learning and discussing Martin Luther’s life and the important role that he played in the protestant reformation. Martin Luther was someone who saw many issues throughout the Catholic Church. Martin Luther was a monk and scholar who was in Wittenburg. In 1517 Luther penned the 95 theses to the door of a catholic church this document attacked the Catholic Church’s c orrupt practice of selling â€Å"indulgences† to absolve sin. 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The CatholicRead MorePost Reformation During The Reformation Era1180 Words   |  5 PagesPost-Reformation era is remarkable better in the Good Governance compared to the centralistic Pre-Reformation era, since the authoritarian tremendous power in the pre-reformation era can be easily used to suppressed the opponents and defy the good governance principles. Unfortunately, there are some weakness with this infancy stage of decentralization in the post-reformation era due to power abuse by the district government or the local forest communities to forest resources. The euphoria of â€Å"Reformation†Read MoreProtestant Reformation And The Catholic Church Essay1339 Words   |  6 PagesProtestant Reformation and the Catholic Church have developed similarities and differences among their religions. Because they are both a major part of history they’re both equally important. The most important thing is knowing facts about our history and major events that occurred. Catholicism and Protestantism are both two very different religions that have different opinions. While Catholics use statues and paintings as a sign of inspiration Protestants did not permit them. Another key difference

Wednesday, May 6, 2020

Marketing Synopsis Free Essays

After the Initial success of the casual shoes, GOES expanded its market towards the apparel and the sports shoe market as well, thereby demonstrating the power of Innovation. Since then, GOES had carved out a niche for itself through distinctive innovation. It has been adopting strategies to ensure that it could successfully renew its technology, products and process, and maintain long term competitiveness. We will write a custom essay sample on Marketing Synopsis or any similar topic only for you Order Now Key Issues and Fact Finding: * According to us, first issue was, Polecat had no prior knowledge in the field of engineering and shoe industry. The research process was exhaustive. After insulting various publications and encyclopedias he recognized that a watertight breathing membrane worn by NASA astronauts can act as a prototype for his shoes. * After patenting the new technology, second issue was that none of any shoe leading companies in Italy showed interests in his product. This led him to manufacture the shoes all by himself. * Third Issue was that after diversifying Its product portfolio and expanding Internationally, GOES could not enter sports shoe market as it had intense competition and it required a very different technology. Polecat felt that every sector requires a different mind-set, but in response to nonuser requests, Golf Shoe range was launched in 2009. * The last and the major key Issue was that shoe market was highly competitive and to maintain Its position, only innovation could not help. The shoes must be stylish and trendy enough to match the style offered by others. Thus GOES had to constantly work on product differentiation while maintaining its quality and costs. Key Learning: * The very first thing this case teaches us is that â€Å"Necessity is the mother of invention†. We must be constantly aware of our surroundings. One should have zeal and enough confidence on oneself to convert the opportunity in potential offering. Polecat realized the necessity of the shoes that breathes and created a new market altogether. * Take small steps and have full faith in your potential. Polecat initially 1 OFF small. This gave him an opportunity to test the response of the customers in limited period of time. After getting satisfactory response, he then switched over to men and women wear and expanded the market gradually. * â€Å"Think big†. Initially he started locally and then expanded its target market by entering in apparels and sport shoes. The company then, internationally diversified its product portfolio. Polecat realized his true potential and knew to what extent he could go. Questions: IQ . What do creativity and innovation Signify and entail? What are the key types of innovation? SQ. Analyses Goose’s innovative strategy in detail. What are features of this strategy that have made Goes shoes a success? What factors, other than product innovation, does Goes owe its competitive advantage to? Q. 3. Assess the market environment of the industries Goes operate in. Who are Goose’s key competitors? What Strategies and options are available to Goes for sustaining its position in these industries? ANSI : Creativity: The process of generating ideas and new ways of doing things is called as creativity. This term is more frequently used in arts. It more refers to the thought process. Innovation: The process of generating ideas and filtering them checking the feasibility of the idea and implementing the idea to create value is called innovation. In simple terms it is the process of creating value by generating new ideas or changing existing ideas. Creativity is a part of innovation. Types of Innovation: Product Innovation: It involves the process of creating new products or altering existing product with new technology in order to create value to the customer. Process Innovation: It involves the key changes in the way of doing business. Impact of process innovation would be big. It should be communicated with the end user effectively. Service Innovation: Creating new service applications which enables the customer much convenience. NAS:2 Innovation strategy for GOES: A good idea, constant collaboration with universities in order to see if idea is feasible and improve it and a patent to protect the innovation. Success Factors: * Company invested heavily in RD. In 2008 GOES spent SIS$ 20. Million on RD expenses. * GOES emphasized on the value of the patents. It made development of â€Å"Breathing Technology’ its mission and held over 50 patents in this field. These 50 include Rubber soles patent, Leather soles patent, Apparel patent, patents related to processes, equipment and machinery and material. These patents helped in gaining competitive edge. Factors that Gave Competitive advantage: They positioned themselves as one of a kind catering to the entire family. Product categories were based on the target customer Target customer: Male, Female, Pricing: Medium to medium-high price range of market Product Categories: Classic products which were elegant and traditional. Casual products which were wearable and adaptable. Production: High quality standards, continuously improving flexibility and time to market, Cost leadership. Marketing: They concentrated around the product features I. E. Technology rather than only concentrating in the fashion and style thus making a clear differentiation from other products. They advertised using the images of product and breathable sole technology. Distribution System: Very efficient and adaptable distribution system for each country they operate in based on their structure. How to cite Marketing Synopsis, Essays