Global Marketing Strategy (MKT3022M) – ResitFOR IKEA COMPANYStudent Name and Surname:Student ID Number:Degree Programme:Seminar tutor:
If a company uses a strategy whereby goods and services are sold outside of its domestic market,this is called an international strategy. Expansion to global markets can provide potential opportunities for the company in question. This paper presented a detailed analysis of IKEA company strategy in the entrance to the international market with more focus on two countries, i.e., Estonia and Jamaica, which are developed and developing country respectively. The paper will also focus on the micro and microeconomic analysis of the countries mentioned above, the market entrance strategies to be used by IKEA and the impact of the company in the entrance to the market of this two potential market places (Doole, Lowe, 2018 pg 15). IKEA is a home furniture company founded in Sweden in 1943 by Ingvar Kamprad, who started selling household items to his neighbors on his bicycle (Baraldi, 2016 pg 99). IKEA believes thathome is an essential place in the world, and children are its most influential people.Microeconomics environments According to Ilmakunnas, Topi, (2015 pg 284), these are a factor in a country that determines how households and people spend their earnings. What combination of goods and services best suits their needs and desires, given the budget they have to pay, how do people decide if they work and, if so if they work full time or part-time? How people choose how much to save for thefuture, or should they borrow to spend it above current funds. It's determinant of the products and how much of each company will produce and sell. It is also determining what prices the company will charge. And how the company will deliver its
products. What determines how many workers you hire. Helps the company finance its activities. And act as a critical determinant of when the company decided to expand contract, or even close (Ilmakunnas, Topi, 2015 pg 286). Hence it is essential for a company such as IKEA have firsthand information on the microeconomics of Jamaica and Estonia respectively before establishing its base on these countries. Macroeconomics environments On the other hand, macroeconomics is concerned with the level of economic activity in the country. In other words, these are factors that determine how much goods and services a nation produces, and regulates jobs availability in the economy. Unlike microeconomics, macroeconomics gives the standard index of living of the given country. It defines what makes the economy accelerate or slow down in a nation, and what makes companies hire more workers or lay off workers Finally (Ilmakunnas, Topi, 2015 pg 288), what makes the economy grow in the long run?Several goals can define the macroeconomic health of an economy: a rise in living standards, low unemployment, and low inflation, to name the most important. How can macroeconomic policies be used to achieve these goals? Monetary policy, which includes strategies that affect bank lending, interest rates, and financial capital markets, is directed by the country's central bank (Ilmakunnas, Topi, 2015 pg 290).