Marketing Strategies / Strategic Marketing Case Study

IKEA: The Furniture Giant Reawakens in Funabashi

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Abstract:
In 1974, IKEA, the Swedish furniture giant, entered the Japanese home furnishings market using low pricing strategy. With an unsuccessful joint venture, its low pricing strategy didn’t work in Japan and so IKEA decided to pull out of the Japanese market in 1986. In 2006, IKEA made its reentry into the Japanese retail market using the same low pricing strategy and by concentrating on small-space living. Though IKEA failed in its low pricing strategy in 1974-1986, it was confident to woo the Japanese consumers using the same strategy with small-space living. But some analysts raised doubts about the success of low pricing strategy again and also opined that IKEA was yet to understand the Japanese retail market. Will IKEA succeed in its comeback trail using low pricing strategy again and by concentrating on small-space living alone?

Pedagogical Objectives:

• To understand about the Japanese retail market
• To understand why IKEA failed in its past attempts.

Keywords :  IKEA, Japanese Furniture market, Wal-Mart, Do-it-yourself concept, adapting, re-entry, winning customers, low pricing strategy, failed in first attempt, Marketing Strategies Case Study, Mujirushi Ryohin, Nitori, small space living, assembly service, self-assembly

Contents:

• IKEA, a brief history
• IKEA's Entry into Japan
• IKEA's Come Back Trail in Japan
• Stumbling blocks
• Plan of action
• Way Forward