to Hold and Maintain through Market Penetration, Product Development, Diversification,

and Joint Venture

Next are the implications of the strategic agenda

MANAGEMENT

1. Develop and implement marketing strategies and handling relationships on the global platform

IKEA will develop and implement marketing strategies and such strategies focused on business
disciplines and secure the business growth and expansion that includes providing a product quality and
service.

A core strategy of having a deeper engagement with the society for them to easily adopt in the new
market environment and thus, includes searching for new suppliers for having a sustainable materials as
well as the need of meeting governmental requirements. IKEA leaders must have the capability of
handling relationships on the global platform that includes collaboration with employees, customers,
knowing competitor’s market standard, and also organizing the flow of business activities.

MARKETING

1. Customer-focused strategic objectives and expansion and diversification of revenue resources

Customer-focused strategic objectives must be IKEA’s greatest emphasis in providing the product quality
and service towards customers considering the price sensitivity and uncomfortable in “doing it by
themselves” type of assembling furniture. Marketing principles of IKEA were to address the issue of
having customers’ price sensitivity and such principles would achieve the customer-focused strategic
objectives that includes tying together of the product, providing services to customers, promotion of the
product by offering in the India market a low-cost pricing with a strong local sourcing of materials. It is
to ensure a widespread of international appeal of product. Moreover, IKEA must aware of the
customer’s behavior in order to offer products that suit the customer’s standards.

NEXT SLIDE PLEASE……

PRODUCTION

1. Product position strategy

2. Healthy and sustainable product

IKEA’s management process involves the product localization and also the meeting of the market and
customers’ requirements that would stabilize their production in India considering the information
collected by the research and development.

The Company plans to offer a mix of Swedish and local cuisines which was healthy and sustainable in
India in accordance to the country food manager Henrik Osterstrom since different cities in India would
definitely offer and present different products. Moreover, it is crucial for the company to address the
price sensitivity of the customers by providing them the product that met their standards and ensure
that the product design would fit the customers taste that creates the development of customers liking
to the brand and thus, providing them the strong reason for visiting the store.

RESEARCH AND DEVELOPMENT

1. Controllable and Uncontrollable factors

2. Customers behavior

More importantly, IKEA leaders have the wide knowledge of the factors that can hinder business
operations across borders which includes some controllable and uncontrollable factors such as the
different cultures, language being used, tradition, customers’ behavior and the intense competition in
such marketplace, and etc. These factors must be research thoroughly to avoid the great negative
impacts in the business expansion that were listed down by IKEA the 8 trends that could affect their
business such as e-commerce, social media, multi-channel, growing demand from the middle-class,
sustainability, quality and low-price, and women in the workforce. These would be thoroughly
researched so the management could take proper actions to address such major consequences.

NEXT SLIDE PLEASE…….

MANAGEMENT INFORMATION SYSTEM

1. Updates of marketing information in India and provide an analysis of business activities in the
new market segment

IKEA must update marketing information of the new market in order for them to differentiate the
differences in the market across borders so that they could properly organize and implement plans to
have a great business flow of activities to provide best impression towards customers to build solid
brand reputation.

IKEA analysis on the factors in doing well in China should also be analyzed, then compared to the factors
in India to connect and provide retention of strategy as well as improve certain aspects that are needed,
to provide proper measures with such risks and challenges that would be encountered in the new
market.

CORPORATE SOCIAL RESPONSIBILITY

1. Knowledge of leaders about employee engagement in marketing activities

The importance of IKEA leader’s collaboration with employee in the marketing activities would bring
great advantage to know what they are thinking and to evaluate the performance of doing well in the
market if they are working in the same objectives as to the organizational objectives to achieve.

It is just like a game “If you don’t know what the pieces and opponents are thinking and what the
strategy is, you can’t have the game”.
ENVIRONMENTAL CONCERNS

1. Usage of waste materials and Compliance to governmental rules and regulations

The usage of waste materials like the coconut waste requires IKEA to implement proper waste disposal
to maintain the cleanliness of the environment both internally and externally. It is crucial in every
business to adopt cleanliness since it is the most priority of the customers to visit a store that is clean
and presentable. Moreover, to operate legally in the new market environment, IKEA was required to
comply the governmental requirements and to freely handle the relationship on the global platform
which involves the business disciplines.