Read: IKEA Analysis in course Text (pg 339 in 11th edition/pg. 353 in 10th edition)

IKEA's Secrets of Success

1. Offering the lowest prices. Cost effectiveness is one of the solid bases of IKEA competitive advantage. The global furniture retailer is able to offer low prices thanks to a combination of economies of scale and technological integration into various business processes.

2. Increasing variety of products. Great range of products also belongs to the list of IKEA competitive advantages. There are 9500 products across in IKEA portfolio and the company renews its product range launching approximately 2,500 new products every year.The company is also increasing its presence in food and catering industries.

3. International market expansion strategy. The home improvement and furnishing chain has traditionally engaged in new market development in an aggressive manner. IKEA Group operates 422 stores in 50 markets around the world.19 new IKEA stores opened in 2018 alone. Additionally, IKEA has 22 Pick-up and Order Points in 11 countries, 41 Shopping Centres in 15 countries and 38 Distribution sites in 18 countries.

4.Benefiting from strategic alliances. The global furniture retailer benefits from strategic alliances to a maximum extent and the formation of strategic alliances is placed at the core of IKEA business strategy. The list of the most successful collaborations include partnership with Apple to explore the possibilities ofAugmented Realityas a tool for home-furnishing, partnership with LEGO for new product development and partnership with Adidas in knowledge sharing about customer behaviour. Experience and competency in the formation of strategic alliances can be specified as one of the most important IKEA competitive advantages.

But when IKEA went to Japan it failed spectacularly.

https://www.smejapan.com/business-news/story-ikea-japan/

1) Analysis, and summary of how a company as successful at foreign market entry as IKEA could have failed in Japan?