Impact on business strategy

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Impact on business strategy

Impact on business strategy

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IKEA

  • Targeting the young middle-class population
  • Target higher incomes,better educated, more aware of western styles
  • IKEA was targeting the mass market in other parts of the world
  • Used product catalogues as a major marketing tool
  • Provided opportunities to imitate the company's products
  • Offered similar products at lower price
  • Instead used Chinese social media and micro-blogging
  • Europe customers used vehicles, stores located in the suburbs
  • China, customers use public transportation
  • Use outlets on outskirts of cities which are connected by rail and metro networks
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Starbucks

  • Change business strategy to guarantee success
  • 570 stores in 48 cities since it first entered china twelve years ago
  • 1500 stores by 2015
  • Created demand for coffee for the middle class and also developed local beverages such as tea just for the Chinese market
  • Focuse on location and visibility one the high streets
  • Took advantage of demand for western lifestyles and appreciationj
  • Focused on brand image
  • Didn't focus on price
  • As they wouldn't be able to undercut Chinese producers
  • Whole of china could be utilised as the north for example is very different to the south
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