This report is the final examination project leading to a Graduate Diploma in Business Administration (Marketing Management) from Copenhagen Business School in Denmark. The purpose of this report is to find potential new growth strategies for IKEA in Denmark because of the claims regarding the perception of IKEA as a ‘dusty’ brand. This claim was quickly disproved when research got started because actually IKEA is the strongest brand in Denmark in 2013 – a result from a Danish analyst agency. The brand equity is a huge potential for IKEA and therefore the company must find ways of exploiting and maintaining this position in the mind of consumer combined with their 21 % market shares. IKEA has a great strengh in their value chain with all its constantly optimizing proceses and isolated on the Danish market the company keep improving for reaching the market standards. IKEA has two main SCA’s (sustainable competitive advantage) wich are ‘value for money’ and ‘brand equity’. These are considered to meet the competition on a fragmented market. Though availability has become a significant issue as IKEA is not able to meet the customer´s buying behaviour, when it comes to easy shopping through the Internet. At the same time the company are only located with 5 warehouses in Denmark. It is indeed considered as a treath from an external perspective as trends point out that one out of five Danish comsumers prefers to do the their shopping on the Internet. At the same time it is a a great weakness that IKEA does not follow competitors in the market. At a strategic level the management of IKEA Danmark is recommended to take action on this issue which is considered as a high priority and therefore a new approach has to be implemented. The cost of this strategic focus on a new E-commerce platform will be an estimated price of 8 mio. DKK which will be depreciated over a time period of 3 years. By the implementation of an E-commerce platform IKEA would keep their relevance at the market and respond to the ever growing trend - consumer behavior - on the Internet.
|Educations||Graduate Diploma Marketing Management and International Trade, (Diploma Programme) Final Thesis|
|Number of pages||98|