Which Features of the “young People of All Ages” Are Universal and Can Be Exploited by a Global/regional Strategy?

Which features of the “young people of all ages” are universal and can be exploited by a global/regional strategy?

Globalization is ultimately the conforming of markets into one huge marketplace, changing businesses to access better quality of production and consumption.

The interconnection between global and regional strategies determines whether or not a firm is able to succeed in the current environment of globalization. (Rugman and Verbeke, 2004)

Global strategy is to operate and pursue an objective at an international or global level. It has a high level for global integration but a low level of national responsiveness. This means that products and advertising methods are consistent throughout countries to sustain a competitive advantage. (Alan M. Rugman et al., 2012) Managers need to consider the local variation to adapt to the countries needs and wants to hold an international position through using its resources and understanding the company’s capabilities. (Rugman and Hodgetts, 2001)

Regional strategy is performing and finding the suggested way to fit in the selected geographical distribution. Rugman and Verbeke, (2008) suggests that if there is a balanced geographical distribution of stores that essentially means worldwide acceptance of its products by customers.

As a MNE (Multinational enterprise), IKEAs concept “young people of all ages” demonstrates the relationship between its mission and vision, to provide products of good quality at an affordable price to improve the lifestyles of many.

The principal target market of IKEA consumers includes universal features that are young, highly educated, open-minded in their cultural values, white-collar workers and are not concerned of status. Most customers contain these features, which is similar across countries and regions.

Product:

It provides the same products of its Swedish/ Scandinavian design to all its stores worldwide whilst maintaining cultural knowledge of the countries lifestyle preferences.

Pricing:

Although pricing may vary from countries due to fluctuations in exchange rates, IKEA continues to hold standardized pricing. The low price strategy is associated with clear positioning and a unique brand-image focused on a clearly defined target audience of “young people of all ages”.

Promotion:

A major part of advertising is made through catalogues, which consist of vibrant color selection and quality furniture displayed in practicality. Together with “word of mouth” strategy it is able to create

Distribution:

IKEA uses its own distribution network to correspond with the target audience to apprehend their busy lives. Customizing alternatives such as delivery rather than the “IKEA way” of self-delivery.

In comparison to competitors of similar market IKEA attracts its consumer base through reliable, quality furniture at a low price whilst also attracting the fun experience created through service, store environment and putting the furniture together themselves. They are looking for entertainment and experience rather than ‘just buying a product’. It targets young people being influenced by trends and modernization whilst still looking for good value products of high practicality and simplicity.