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Understanding Contemporary Organisations: IKEA

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Describe about understanding contemporary organisations of IKEA?


IKEA was founded by 17-years old Ingvar Kamprad in 1943 in Sweden which has made him one of the world’s richest men (IKEA, 2015). IKEA is involved in the designing, manufacturing and selling of ready to assemble furniture, home accessories, small motor vehicles and appliances. IKEA is one of the world’s largest furniture retailers with 351 stores operating in 46 countries. The company is recognised worldwide for its modern architectural designs, competitive prices and unmatched quality (IKEA, 2015).  IKEA has been able to capture a remarkable market share worldwide and enjoys a huge brand loyalty. The company is recognised worldwide for its effective and unique marketing strategies that help them communicating their message to their target customers. Marketing strategies of IKEA ensure that their values are effectively communicated to their audience both in a visual and audible form (IKEA, 2015).

Marketing strategy help organisations enhance their sales figures and achieve a sustainable competitive advantage (Ferrell & Hartline, 2012). Adaptation and standardisation are the two types of marketing strategies a firm can use to communicate their message to their target audience. IKEA relies on the standardisation marketing strategy (Staff.ac.uk, 2015). Standardisation marketing strategy focuses on offering similar product lines at similar prices through similar distribution channels such that it is supported by almost similar promotional activities in different countries. IKEA has always focused on following the identical work pattern and create identical brand image in all the countries they operate. A standardised marketing strategy helps them in creating a competitive advantage that cannot be imitated by rivals (Baines, et al., 2013). This help the company in controlling their operations cost and keeping it low which further help them in providing a cost advantage to their customers. A low price offered by IKEA makes its products affordable by a majority of consumers. At the centre of their marketing strategy is their merchandise, the products of high quality at most affordable prices. They follow the same store layout in all their stores which have interiors that enhance customer buying experience and also influence their buying behaviour.

IKEA is recognised worldwide for their unique and interactive promotional strategies. They have been rewarded several times for creation of some of the most interactive campaigns and advertisements. They use all forms of promotional strategies ranging from sales promotions, direct marketing, public relations, content marketing, social media marketing and guerrilla advertising (Ferrell & Hartline, 2012). IKEA many times have surprised their customers with their unique promotional strategies specially guerrilla advertising. They have been recognised worldwide for their guerrilla advertising which helps creating a unique perception in the minds of their customers. It helps them realise and feel the comfort that is associated with IKEA products and how the products can help change the look of their home. IKEA has several times used public places like roads, railway platforms and malls to convey their message of quality and durability associated their products that are available at the most competitive prices. These strategies help IKEA in maintaining and retaining their competitive advantage in today’s dynamic market place.



Baines, P., Fill, C. & Page, K., (2013) Essentials of Marketing. Oxford: Oxford University Press.

Ferrell, O. C. & Hartline, M., (2012) Marketing strategy. New York: Cengage Learning.

IKEA, (2015) Getting our messages to the many people. [Online]  Available at: https://www.ikea.com/ms/en_US/the_ikea_story/working_at_ikea/work_areas_marketing_communications.html [Accessed 2015].

IKEA, (2015) Welcome inside our company. [Online] Available at: https://www.ikea.com/ms/en_AA/this-is-ikea/about-the-ikea-group/index.html [Accessed 2015].

Staff.ac.uk, (2015) International Supply Chain Management. [Online]  Available at: https://www.staffs.ac.uk/schools/business/resits/postgrad/InternationalSupplyChainMgmtIKEACaseStudy.pdf [Accessed 2015].


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