Impact on business strategy

Impact on business strategy

• 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

• 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