CASE STUDY: IKEACulture as a competitive advantage

Presented By: Blake Gonsalves Chitwant Tahalyani

Digvijay Singh Yadav Hazelann Solanki

Kedar Risbud Ravi Kunchikurve

Rohan Tarkari Sarang Banunakde

Saurabh Mhase Swati Gogawat

OVERVIEW

Culture as a competitive advantage

1. Introduction of IKEA

2. The IKEA way- doing things differently

2.1. Mission

2.2. Business Principles

2.3. Management style

3. Strategy of global expansion

4 . Clouds on the horizon

SWOT ANALYSIS

• Intensifying competition

• Growth of average consumer income

• Further expansion into developing economies

• Growing online sales• Expansion to growing

grocery market

• Decreasing quality

• Standard products

• Customer knowledge• Constantly using

innovations to drive costs down

• Supply chain integration• Brand reputation and

market presence

S W

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QUESTION 1

Is the Scandinavian culture of IKEA an advantage or a disadvantage in

its attempt to become international? explain

o Sweden is one of the major country in Scandinavia

o Scandinavian designs is very popular in early 19th century

o Coniferous forest as an asseto Contribution by the Swedish society

for industrial design

QUESTION 2

What are the key aspects of IKEA Culture?

Shared Values Beliefs and norms Consistent Behaviours

WHAT IS CULTURE?

1. Simplicity is important at IKEA2. Everything has a price3. A proud heritage from humble origins4. Value Driven

IWAY STANDARD

Prevention of Corruption

Dialogues with the unions

Safe and healthy working environment

QUESTION 3

How do national & corporate culture

generally affect corporate performance?

What does it affect ?

• Business relationships with overseas clients, customers, employees, and partners.

• Public relations, marketing, and advertising strategies.

Internations.org

CONSEQUENCES OF FAILING TO CONSIDER CULTURE

• Consumers lose faith and confidence in your product and company.

• Customer backlash and highly visible, negative public reactions.

• Negative public relations and the erosion of the brand you have worked hard to build.

• Loss of revenue, sales opportunities, and customers.

• Possible punishment in the form of retaliatory legislation or lawsuits.

Internations.org

CULTURAL DIFFERENCES IN BUSINESS

• Differences in Communication

• Valuing Time

• Customs

• Target Audience

SmallBusiness.chron.com

THANK YOU