Isnin, 9 Disember 2013

QUESTION 3


QUESTION 3

As IKEA plan to have more stores across Malaysia, what suggestions would you offer to IKEA on the location of its new stores?

IKEA decided to set up another store in Klang Valley, Peneng and Johor. Fistly, they need to put their location in any developing town. This is because any developing town will have an attraction to other people to come also have many populations (middle class). So, consumer can easily get their shop near their house.
IKEA need to build up their stores more different than it competitors. This is because it give benefit and competitive advantage to them.
Other than that, IKEA need to provide their stores near consumer houses because it is personal factor that can attract people to buy from their stores. Usually, consumer does not like to visit stores that is far away from their house and not situated in interesting and popular location.
IKEA also need to set up their stores far away from their competitors because this could prevent from competition.

QUESTION 2


In Malaysia, IKEA has relied excessivelyon on promotion through catalogues. What other forms of promotion would you suggest?
Answer:
            IKEA also can promote their product through internet. According to SKMM, internet users in Malaysia will achieve 65% at the end of 2012. Recently, Malaysia’s Paypal reported that the trend of online transaction in Malaysia increased to RM2.71 billion at the end of 2012 compared RM1.97 billion in year 2011. Through in internet, mostly all people in Malaysia will see the the advertisement in video or picture.
IKEA can build web sites that embody or express their purpose, history, product and vision that are attractive on first viewing and interesting to encourage repeat visits. In the Youtube, IKEA also can advertise their product because every consumer of Youtube is from different level of age. Nowadays, the web site already offer to any company to advertise their product through video.
Other than that, IKEA can use e-mail about IKEA’s product. The users can choose either want to accept or not the advertisement e-mail in the future. In addition, IKEA also can promote their product through social media such as social network (Facebook, and Twitter), bloggers, online communities and forums. Consumers can share text, images, audio and video information with each other and with companies and vice versa. Online communities and forums created by consumers and groups of consumers with no commercial interests or company affiliations. They can posting, instant messanging and chat about special interest about IKEA’s product. All member in the group can give testimonies about IKEA’s product. So, IKEA need to use the link of the group and spread to consumer.
Through blogs, IKEA can use the way too. But, it depend on the ownner of the blog instead they give a good comment or try to revenge on companies for bad product. If the owner of the blog give good comment and testimony, IKEA must use the blog to promote their product to consumer though e-mail. Social network usually the best way to attact people because most people use social network for online. They can share and give some comment of IKEA product as a testimony. So, other people will buy the product. But, it can cause trouble when IKEA’s product does not give satisfaction to consumer. By using internet, IKEA can reduce marketing cost.
            IKEA can do promotion in other form such as newspaper. IKEA can advertise their product through newspaper. This is because newspaper is a major information and choice in Malaysia to gain information and so on. Newspaper is good in local market coverage but IKEA must choose a popular newspaper’s companies such as Metro and The Star.
            IKEA also can use television as a medium to promote their product. They must choose perfect time to advertise their product on television such as on 8.00 to 9.00 PM when all consumer likely to watch television. This way can give more attraction because of high attention and easy to reach person that interested to their product.
            IKEA can advertise their product through magazine but must be popular and suitable for their target market. In Malaysia, magazine such as ‘Majalah Nona’, ‘Mangga’ and so on. Other than that, IKEA also can promote by using radio and newsletters. By using radio, IKEA need to promote through popular radio such as Hot FM, HITZ FM and Era. This way can reduce cost and can use telephone call from consumer to give testimony. By newsletters, IKEA can promote their product and gain high selectivity and interactive opportunities.

Rabu, 10 April 2013

QUESTION 1



QUESTION 1:
Why did IKEA decide to enter Malaysian market through franchising? Do you agree with this strategy?   What could have been alternative strategy?
Answer:
IKEA entered the Malaysian market as part of its expansion drive across Asia. This has resulting in IKEA Pte Ltd (Malaysia Branch) being set up in 1996 to oversee the Malaysian Operations. The Malaysian store is the fourth one in Asia after Hong Kong, Singapore and Taipei. Malaysia contributes 3% to IKEA world wide sales.
IKEA entered Malaysian market through franchising because they have applied a conservative policy to globalization. Actually, the general rule of this policy is that the firm never enters a new potential market by opening retail outlet. Instead, a supplier link with host nation is established. This is a strategic risk reducing approach in which local suppliers provide input. By practice this strategy, IKEA can minimize their risk and cost.
IKEA has concentrated it international expansion in ASIA mainly through company owned subsidiaries. Franchising on the other hand, has been extensively utilized in expanding to other areas of the world.
IKEA expanded to Malaysia and approaches high- risk market by franchising. In franchising, the franchisees have to carry basic item but have the freedom to design the rest of the product to mix to fit the local needs.
Yes, i agree with this strategy. The reasons are:-
By franchising, a supplier link with host nation is established. This is a strategic risk reducing approach in which local suppliers provide valuable input.   Example of the inputs are culture which is during festival the supplier need provide items that related to Malaysian festival that is Hari Raya, Deepavali and etc.
This strategy is an international expansion through company-owned subsidiaries.   This makes IKEA more organized when the IKEA head quarters can focus on other important matter such as research and development and training.
The other alternative strategy is strategic alliances or joint ventures allow partner with an existing business to share the risks and opportunity in a new market. A strategic alliance is a form of collaboration between two or more companies which can take on many forms such as technology transfer, purchasing and distribution agreements marketing and promotion collaboration joint product development. A joint venture involves a potentially long term investment of funds, facilities and resources by two or more companies to a combined ventures, which give benefits to both side companies.
Other than that, IKEA can sell their product through foreign agents that are provided in some area. So, the agent can do booking to IKEA if there are customer want to buy their product. The agents will give some commission of their sale.
In addition, IKEA can distribute their product through export management company. It become department exporter for several manufacturers. They will give some commission.