Key Environmental Forces that create Opportunity for IKEA
IKEA is a world leader in the furniture industry where it has been able to successfully penetrate the global markets. The company has been able to settle into the Singapore market due to various environmental factors. The technological environment in Singapore is desirable since the government has played a major part in providing necessary infrastructure such as telecommunications and shipment facilities. This in turn makes it easier for IKEA to reach out to its segments easily. The economic situation in Singapore is also promising with major growth in GDP experienced in the recent years. The political stability in Singapore is also a key factor that enhances long term sustainability of operations. Transparency in the regulatory environment has also served well for the company since it provides a secure legal aspects accommodative of foreign investors.
Changes in the Purchasing Trends among Consumers
There is an increasing trend in the purchase of IKEA’s products due to the growth in the per capita income. The modern cosmopolitan culture is among the key factors that has led to positive shifts in purchasing trend among furniture consumers.
Key trends in each environmental forces.
The growth in economy is a major trend that influences long term growth of the company. There are favorable lending rates from the well-developed financial systems hence giving opportunity for dependence on credit for growth. Technological tends are also favorable where there are improvements in the telecommunications, shipping and air infrastructure. This improves ability to deliver products to the desired markets in time. The social environment in Singapore is desirable since the culture appreciates diversity with mutual relationships being encouraged by the government. Etiquette and mutual security are key core values among the natives of Singapore hence providing stable environment for business.
The differentiation strategy to be considered by IKEA
The differentiation strategy to use include the need for unique designs that appeal more to the cosmopolitan markets. This implies that need to consider customized products as well as creative designs that take care of the lifestyles among the customers.
Lessons from the Geek Squad case study
The Geek Squad’s products are complicated where by customers have to go through complicated manuals and menus to ensure their devices are working. The ability to fix problems is also limited by the complication such that it takes a lot of time to respond to customers’ needs which in turn lowers customers’ confidence. The outcome of complicated manuals, menus and products implies that customers experience great inconveniences which then lowers customers’ trust in the company and make them switch to companies that offer them simpler and easier ways to derive utility from electronic purchased.
Recommendations for Geeks
Several of the customers who purchase electronic products do not know how to install or repair. This implies that there is no need to provide customers with complicated manuals that make it hard for them to understand how to successfully install their programs and keep their devices running. There is need for simplification of the menus and manuals before the products are delivered to the customers such that customers are assured of an easier time in enjoying the services of the products. This implies that Geek Squad has to look into ways through with it could enhance customer loyalty by reducing the inconveniences often experienced by customers.
References
IKEA. (2011). IKEA Group Approach to Sustainability: How we manage sustainability in our business. London: IKEA Group.
Riecken, G. (2014). Best Buy: Reconquering the electronics market? Journal of Business Cases and Applications, 1-10.
RSM International. (2013). Doing Business in Singapore. Wilkie Edge: RSM International Limited.
