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In 2011, Sony and Samsung had a joint venture in LCD television technology, Sony pulled out of this agreement, with Samsung buying out the stake in the venture for $939 million. This ended up being a significant positive decision for Samsung as they have gone on to dominate the TV market in both market share and quality following innovations into OLED LCD screen technology.

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Samsung have entered a strategic partnership with Microsoft, as of 2017. They are working together for the Samsung Galaxy Book, to compete more effectively with the apple iPad product line, allowing for greater effectiveness with Microsoft’s software solutions and marketing power in western countries such as the US. This partnership directly improved the device’s compatibility and connectivity specifications through combining technical knowledge.

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Today, we are excited to share the latest innovations in our partnership with Samsung, bringing together Samsung's new devices for productivity with the best apps and services across Microsoft 365, Windows 10 and Xbox to help you across work and play.

We know technology is more important today than ever before. While life has changed for everyone, some important things remain the same. People need to connect. They need to work. They need to play and enjoy life. Together, Microsoft and Samsung are addressing these needs, creating experiences and devices that are easier to use than ever before while providing greater flexibility and access to the tools you need from any place at any time.

Since we announced our long-term partnership last year, we have been working closely to co-engineer experiences that help you move seamlessly between your devices and your life. Today, we share new integrations that will make this even easier.
Seamless connection between PC and Phone
We all rely on a variety of devices everyday across our work and personal lives, which often leads to disconnected experiences. A phone buzzing while you are in your work flow on your PC is the last thing you need, especially with the constant stream of interruptions we are facing while trying to work in new conditions. Microsoft's Your Phone app and Link to Windows integration on select Samsung devices, enables you to stay in the flow by allowing you to take calls, check notifications, see photos and messages, all from your Windows 10 PC. Now, on your Samsung Galaxy Note20, you can access and interact with your favorite mobile apps directly on your Windows 10 PC through the Your Phone app [1].

When you launch an app, it opens in a separate window, allowing you to multi-task and saving you the time and hassle of sign-in or set up. You can also pin your phone's Android apps to your Windows 10 taskbar or Start menu for quick and easy access, making things like checking out your social feed or ordering your lunch while you wrap up a conference call even easier, without ever picking up your phone.

Samsung Galaxy Note20 users can now access a single mobile app on their PC [2], with the power and convenience of running multiple apps side by side available later this year. Whether you are working on a document, keeping up on your social media feed or simply staying connected with family and friends, everything is accessible in one place, so your flow is never broken.
Productivity wherever you are
We are also making it seamless to transition between your Galaxy Note20 and Microsoft 365 apps with instant access to your most important notes across your devices. Coming soon, notes from Samsung Notes can automatically sync with your OneNote feed in Outlook on the web or OneNote as an image. You can quickly jot down your notes from a meeting or grocery list with your S Pen on Galaxy Note20 and have instant access to the content in your productivity apps like Outlook and OneNote.

You will also be able to sync Samsung Reminders from your Galaxy Note20 to your Windows 10 PC across Microsoft To Do, Outlook and Microsoft Teams experiences, so you can view and edit from anywhere, keeping your reminders aligned across your phone, PC and apps.

For the past year, Outlook has served as the app for personal productivity on new Samsung phones. We're excited to announce today that we're extending this integration to include Samsung Galaxy watches, including the new Galaxy Watch3. As the native email app on your most important devices across the Samsung ecosystem, Outlook will help you stay organized and productive. Custom optimization for S Pen will also be available on Galaxy Note20, making it easy to write or ink on photographs from your gallery. And Outlook brings Play My Emails to Android devices [3], offering a voice forward, hands-free way to listen and respond to what's new in your inbox so you can get time back in your day.

With OneDrive on Samsung Galaxy phones, you have your important files, documents and photos at your fingertips across devices. You can set your phone's camera roll to automatically sync to OneDrive with Gallery, so your photos and videos are protected and always accessible. And with OneDrive Personal Vault you can store and protect important files with peace of mind behind an extra layer of identity verification. You can keep digital copies of your passport, ID cards, insurance, taxes and other sensitive files in OneDrive and access them securely on your device wherever you are [4].
Xbox Game Pass in your hands
Today, we also announced Xbox is partnering with Samsung to make gaming more accessible to players around the world, via the cloud. With cloud gaming (beta) as part of Xbox Game Pass Ultimate, Microsoft's gaming subscription service, members can play Xbox games on their Xbox console, PC and Android devices using an Xbox controller. Mobile players can play over 100 high-quality Xbox games directly on their Galaxy phone or tablet.

Beginning Sept. 15, you'll be able to experience the best of Xbox Game Pass by downloading the app from the Samsung Galaxy Store, giving you the freedom to access expansion packs, downloadable content and more. Whether it's racing through the beautiful English countryside in Forza Horizon 4 on a new Galaxy Note20 during a lunch break, or fighting alongside your pet llama in Minecraft Dungeons on a Tab S7 at home once the workday ends, Galaxy devices provide the best way to pick up and play games directly from the cloud.

Customers who pre-order the new Galaxy Note20 have the option to select the Gaming Bundle at purchase, which includes three months of Xbox Game Pass Ultimate. Additionally, Samsung is including the all-new Power A MOGA XP5-X Plus Bluetooth Controller with an attachable phone clip with the Gaming Bundle to ensure those Galaxy Note20 customers enjoy a great cloud gaming experience. Pre-orders begin today and cloud gaming as part of Xbox Game Pass Ultimate goes live in 22 markets in North America, Europe and South Korea beginning Sept. 15.

With Xbox Game Pass on your Samsung Galaxy, your Xbox games are always in your pocket.

We are excited to continue working together with Samsung to create new experiences that enable your devices to work together seamlessly across work and play to help you stay in your flow - whatever that may be.
[1] Users must link their Galaxy device to their Windows PC through 'Link to Windows' on phone and Your Phone app on PC, follow the set-up prompts, including being signed into same Microsoft account. Link to Windows is preloaded on select Galaxy devices. Your Phone requires latest Windows 10 Update on the PC. Galaxy device must be on and connected to the same Wi-Fi network as the PC. Some mobile apps may restrict content to be shared on other screens or may require a touch screen to be able to interact with them. Ability to run multiple apps simultaneously will start rolling out in November 2020. [2] Beginning 8/21 with retail availability of Samsung Galaxy Note20. [4] OneDrive Basic 5 GB free accounts and 100 GB plans can store a maximum of 3 files in Personal Vault. A Microsoft 365 Personal or Family subscription is required to store more than 3 files in Personal Vault.

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Microsoft and Samsung expand partnership, empowering you across work and play

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Today, we are excited to share the latest innovations in our partnership with Samsung, bringing together Samsung's new devices for productivity with the best apps and services across Microsoft 365, Windows 10 and Xbox to help you across work and play. We know technology is more important today than ever before.

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The Honourable Prime Minister of India, Shri Narendra Modi today inaugurated Samsung Electronics' new mobile phone manufacturing facility - The World's Largest Mobile Factory - in Noida, Uttar Pradesh, India.

Samsung India also launched its 'Make for the World' initiative, whereby it aims to export mobile handsets produced in India, to overseas markets.

With this new facility, Samsung will double its current capacity for mobile phones in Noida from 68 million units a year to 120 million units a year, in a phase-wise expansion that will be completed by 2020.

Samsung has been manufacturing mobile phones in India since 2007, and is the only brand that is truly made in India. Samsung India has been populating Printed Circuit Boards (PCBs) right from its inception and is aligned with the Government of India's Phased Manufacturing Programme (PMP) goals.

On June 7, 2017, Samsung had announced an investment of INR 4,915 crore to add new capacity at the Noida plant, under the Uttar Pradesh government's Mega Policy.

"Our Noida factory, the world's largest mobile factory, is a symbol of Samsung's strong commitment to India, and a shining example of the success of the Government's 'Make in India' programme. Samsung is a long-term partner of India. We 'Make in India', 'Make for India' and now, we will 'Make for the World'. We are aligned with Government policies and will continue to seek their support to achieve our dream of making India a global export hub for mobile phones," Mr. HC Hong, Chief Executive Officer, Samsung India, said.

The Noida factory, which was set up in 1996 is one of the first global electronics manufacturing facilities set up in India. A bigger manufacturing plant, spread over 129,000 sq. metres, will help Samsung meet the growing demand for its innovative products and services across the country and also fulfil the Company's goal of making India an export hub for the world.

As a true market leader, Samsung continues to provide cutting edge technology and enriching experiences to Indian consumers with its mobile phones made at the Noida plant, supported by a large ecosystem of suppliers in the Delhi-National Capital Region and partners across the country. All Samsung mobile phones, including the flagship Galaxy S9, S9+ and Galaxy Note8, are made at the Noida plant.

Since its entry into India in 1995, Samsung has set new benchmarks in innovation led manufacturing and consumer marketing, and established itself as a truly national brand. It has consolidated its market leadership in the country with two factories, in Noida and Sriperumbudur, near Chennai, five R&D centers and one design center. These are supported by a strong network of over 1.5 lakh retail outlets and 3,000 customer service points, the largest by any company in the country.

In October, 2016, Samsung launched 535 service vans to provide timely and quality customer service to consumers across the country, touching every remote village in all 6,000 talukas. Samsung has emerged as a truly Indian company at heart by fulfilling its commitment to 'Make in India' and living its promise of 'Make for India'.

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Samsung Inaugurates World's Largest Mobile Factory in India; Honourable Prime Minister Shri Narendra Modi Flags-off 'Make for the World'

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The Honourable Prime Minister of India, Shri Narendra Modi today inaugurated Samsung Electronics' new mobile phone manufacturing facility - The World's Largest Mobile Factory - in Noida, Uttar Pradesh, India. Samsung India also launched its 'Make for the World' initiative, whereby it aims to export mobile handsets produced in India, to overseas markets.

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McD is a franchise that has branches all around the globe, serving a large audience from every culture. To appeal to customers, McD has a strategy to attract locals with their special cuisine menu. This menu is special to each country, fit for the cultural and traditional cuisines of the location.

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Samsung ships millions of products every day to customers around the world. With a worldwide customer base, Samsung does not subscribe to a one size fits all philosophy. Its employees pride themselves on finding inspiration from observing people's lives and giving them options that meet their varying cultural and regional needs.

At , Europe's largest consumer electronics show, Samsung outlined its strategy to becoming the number one home appliance brand by 2015, highlighting its year-on-year 14% growth in digital appliances. One of the secrets of this success is the extensive research that goes into understanding how people approach and use technology. Distilling insights from this research informs everything Samsung create. That is how it comes up with products and services that make life at home a more comfortable and happier place.

Samsung plays an active role in each region in which it operates and understands that cultures can be subtly different. Whether its local appetites, customs or preferences, Samsung believes that understanding and meeting local needs is paramount to creating the best possible experience. For this reason, localizing products is something that is crucial to Samsung's ability to realize its goals.

In the past year, Samsung has set up five Lifestyle Research Labs in San Jose, London, Dehli, Singapore and Beijing to forecast future ways of living and define opportunities for innovation. These labs look beyond product behavior to discover people's future needs and values - everything from how the family is evolving to work, education and wider societal and cultural trends.

From here five Product Innovation Teams gleam insights from this research and assist Samsung's product divisions to develop innovative product and solution concepts. Located at the same place as the Lifestyle Research Labs, the Product Innovation Teams' product concepts are 18-24 months ahead of the present.

The development process begins with a two to four month period whereby Samsung goes into the field to conduct research to see the world from a user's point of view. From here, employees talk to the best thinkers and designers in the world to generate, build and refine ideas that will deliver the greatest innovation opportunity. Finally, the teams formulate a business strategy and create the product concept.

Complementing these two divisions are six Design Centers in San Francisco, London, Delhi, Tokyo, Shanghai and Seoul, working to bring the research and concepts to life with award-winning design excellence. This undertaking is part of Samsung's extensive research and development commitment that saw a $10.8 billion investment in 2012 and encompasses over 60,000 employees. All in all, over one in four people at Samsung are dedicated to product innovation.

Throughout the world, Samsung localizes its products to suit specific market desires. The following are a few examples.
United States - French Door Refrigerator with Sparkling Water Dispenser
Observing the increasing demand for sparkling water in the United States, Samsung introduced a refrigerator that dispenses carbonated water at the touch of a button.

Yogurt is an important part of the local diet so Samsung developed an oven able to produce the perfect homemade yogurt in seconds.
Africa
SafeSurge TV - To protect against the region's frequent power surges and outages, Samsung created LED TVs with increased pressure resistant capacity.

Free Satellite TV - Satellite tuners were installed directly into TVs to enable viewers to watch free TV services in isolated regions with no cable access.

Duracool Refrigerators - These specially insulated refrigerators keep food fresh for eight hours in the event of a power cut.
Turkey - Samsung Top Mounted Refrigerator RT55
The local taste for fresh vegetables led Samsung to reduce the size of freezer compartments by 21% and made the fridges narrower to fit the space better available in Turkish homes.

To handle the region's scorching 40°C+ temperatures, Samsung built air-conditioners with specially-developed compressors.
India- Samsung Twin Top Washing Machine
A range of washing machines have been fitted with wheels to ensure they can be easily moved and connected to alternate power or water sources in the event of outages. They are also fitted with a special basin to meet the custom for hand-washing certain clothes before the full wash-cycle.
China - Fu Yun Monitor, Ji Xiang Fa TV F4280, Ru Yi Hong TV F5080
The color red and the number 8 are considered lucky, so Samsung's Chinese product line includes PC monitors with red back-covers and LED TVs fitted with 8-shaped stands. The character for luck "福" was also embossed on the rear of monitors.
Korea - Samsung Kimchi Refrigerator M9000
Koreans have kimchi, a fermented vegetable delicacy, with almost every meal, so Samsung developed a bespoke refrigerator that keeps the air-flow and temperature just right for the perfect kimchi.
China and Korea | Q9000 Air Conditioner
With the growing desire for minimalist product design in evidence, Samsung developed a sleek, ultra-slim standing air-conditioner perfect for design conscious customers.

Samsung constantly seeks to discover the trends and desires that drive consumer needs around the world. To find out more about the products announced at IFA 2013, please visit www.samsungifa2013.com

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Samsung Designs Globally and Adapts Locally for Worldwide Success

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Samsung ships millions of products every day to customers around the world. With a worldwide customer base, Samsung does not subscribe to a one size fits all philosophy. Its employees pride themselves on finding inspiration from observing people's lives and giving them options that meet their varying cultural and regional needs.

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Samsung believes that understanding and meeting local needs is the principal to create the best possible experience. Samsung plays an active role in each region in which it operates and understands that cultures can be subtly different  Therefore, Samsung creates product based on local need and taste.

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McDonalds started out as a barbecue stand but soon evolved to become the largest fast food chain in the world. Through the process of globalisation, the business is able to expand and has branches allover the world with more than half of the premises located internationally. Globalisation of the firm allows them to amend the strategy such as implementing drive thru stations to accommodate different countries ways of getting food.

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Globalization is the growing integration of countries through increased freedom of global movement of goods, capital and people. Strategy is a long-term plan of action for the whole organization to achieve a particular goal. Globalization has a significant impact on business strategy. This can be seen in the company of Cadbury. Cadbury is a British multinational confectionery company fully owned by Mondelez International (originally Kraft Foods) since 2010.  The headquarter is in Uxbridge, London while the products are available in about 50 countries.

The first step in the globalization of the company, Cadbury accepted an improved £11.6bn takeover bid from Kraft, justified its decision to sell out to the US food group. This is beneficial to the company to ensure the financial source. However, the ownership of the company is no longer secured by the Cadbury family.

Other than that, to secure a supply of quality cocoa from Ghana, Cadbury is to invest £30m in rural development in the country over the next 10 years. The money forms the bulk of the £45m Cadbury Cocoa Partnership, a decade-long commitment aimed to invest in communities that grow cocoa for Cadbury. Cadbury also had manufacturers in more than 15 countries as of 2017 across the world which helped to reach a wide market.

The strategy used by Cadbury in areas of South East Asia and the Middle East is to connect with consumers in a meaningful and purpose-led way, which focuses on the taste of the chocolate. This taste element is crucial in markets where Cadbury represents an expensive option compared to the local alternatives. Cadbury's strategy also includes unveiling a “healthier” version of its Dairy Milk bar with 30% less sugar. This product development is used to maintain the customer base.

As for the stakeholders, the parties who benefit from this include the employees and managers as they are expected to see a rise in salary and productivity. A large number of cocoa bean farmers also profited from the company's growth by securing their job. However, some customers feel unsatisfied when Kraft Foods changed the old recipe of their chocolate. This is caused by the company's choice to opt for standard, cheaper cocoa mix chocolate.

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KNOWN for its drum-playing gorilla as much as its chocolate, Cadbury has been satisfying the sweet tooths of Brits for nearly 200 years.

And the chocolate giant also announced yesterday it would be moving almost all production of Dairy Milk bars back to the UK from Europe.

It has pumped £15m into producing the bars in Birmingham, marking a huge boost for post-Brexit Britain.

But who owns the chocolate giant? We explain all you need to know.

Who owns Cadbury?

Mondelez International owns Cadbury.

But the business started off as just a single shop in Birmingham back in 1824, where 22 year-old businessman John Cadbury sold tea, coffee and drinking chocolate.

His store steadily grew into a booming chocolate manufacturing business, which was passed down the family line for generations.

Then in 1969, Cadbury merged with drinks giant Schweppes, which then-Cadbury chairman Adrian Cadbury said would give the business more cash to expand the brand.

Household names such as the Curly Wurly, Creme Egg, and Wispa were launched soon after.

Nearly 40 years later, Cadbury Schweppes planned to demerge in 2008, which reports at the time said would cost the business over £1bn.

Two years later, Mondelez International, a spring off from Kraft, bought the business for a whopping £11.5bn.

The takeover has ruffled a few Cadbury fans' feathers since, though.

In 2015, chocolate lovers slammed Mondelez International for secretly changing the recipe of Cadbury's Creme Egg.

And in 2017, chocolate lovers accused the US parent company of altering the taste of Mini Eggs.

What does Cabury sell?

Cadbury is best known for its chocolate treats.

Four of its bars - Cadbury Dairy Milk, Twirl, Wispa and Flake - made it into the top 10 list of Britain's favourite chocolate bars last year.

However, Snickers topped the leader board, with the Cadbury Dairy Milk bar coming in second place.

Cadbury made its first chocolate bar - Cadbury Milk Chocolate - in 1897, and now the business offers an array of tasty treats.

One of it's newest creations was the limited edition Cadbury's Orange Twirl, which made a comeback last year after flying off the shelves when it first launched in 2019.

It was so popular that some fans struggled to get hold of one - with some joking that it "doesn't exist".

They were also being flogged on eBay for a whopping £700 a case.

Why are they known for their adverts?

Cadbury is also known for its bonkers ads.

In 2007, an ad for Dairy Milk featuring a gorilla drumming to In The Air Tonight went viral and scooped up a number of awards.

It was so successful it revived Phil Collins' fortunes.

The 80s star said to The Sun in an interview nearly 10 years later: "Not only is he a better drummer than me, he also has more hair. Can he sing too?"

Other iconic ads by the brand include the ones for Milk Tray, in which a hunky Milk Tray man would go to great lengths to deliver chocs to woo a lady.

Women went weak at the knees when Cadbury brought the Milk Tray man back in 2016, when the revamped ad made its debut on Saturday night TV.

But not all of the business' marketing drives have gone down as successfully.

Critics mocked Cadbury for spending millions on a logo that looked almost identical to the old one.

And it was forced to pull an advert for its Picnic bar featuring a fast-talking Indian after being criticised for exploiting the "cliche caricature demeanour".

Watch as stunned shoppers spot a confused pigeon guarding a box of Cadbury chocolate eggs at Tesco.

And chocolate lovers are getting excited over Cadbury's newest Easter egg creation - white chocolate Oreo.

Cadbury also hid 200 gold Creme Eggs in shops around the UK in January, with a £5,000 prize for shoppers if they found one.

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KNOWN for its drum-playing gorilla as much as its chocolate, Cadbury has been satisfying the sweet tooths of Brits for nearly 200 years. And the chocolate giant also announced yesterday it would be moving almost all production of Dairy Milk bars back to the UK from Europe.

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Cadbury has been about goodness since John Cadbury opened his shop in Bull Street. Read more about Cadbury's history here

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Introduction

IKEA is a furniture company operating on a global scale. With stores all around the world, it had to adapt its strategy to the countries where the European approach proved unsuccessful. Nevertheless, IKEA is an example of a highly profitable global company. This paper will cover the benefits of globalization that IKEA experienced, the importance of cross-cultural understanding, and the limits of the global market.

Discussion

IKEA is a tremendously successful company. In part, it owes its success to perceiving the whole world as its market. With 230 stores in 33 countries, it has shown that global strategies can lead to success. Its strategy focused on providing a finely designed product at the lowest possible cost. IKEA stores share their style all over the world, making the brand recognizable and reliable. By expanding its market without lowering the quality of the product, it was able to establish one of the most recognizable and profitable furniture brands in history (Steenkamp 51). IKEA prides itself on its cost-cutting policy, and with a global strategy, it requires globalization of production. By creating production sites in the countries it operates in, IKEA cuts the costs of delivery and manufacturing that would otherwise become unfeasible when working on a global scale (Olhager et al. 146; Burt et al. 16).

However, IKEA was not able to keep its stores and catalog identical in all countries. Without understanding the specific needs of the country, a global company is at risk of losing a lot of customers. Before expanding into the United States, IKEA did not consider the differences between the US and European markets (Mellahi and Frynas 4). As the case study points out "Sofas weren't big enough, wardrobe drawers were not deep enough, glasses were too small, curtains too short, and U.S. size appliances didn't fit in the kitchens." This expansion could have been disastrous had the company not addressed this problem by redesigning its products to be more appropriate for the market. Now it is a popular brand in the United States, and the early mistakes are long forgotten.

To not repeat the same error twice, IKEA made an effort to customize its stores in China to the needs of Chinese customers. For example, a balcony section of the store was introduced. Chinese apartments often have balconies, so it was a smart decision to capitalize on this regional difference (Prange 81). This change in strategy shows some of the limits of the global approach. One strategy cannot apply to all countries due to their regional differences. A global company has to consider the needs of its customers on a more local level. This move will make the business more profitable in return. However, it does not prevent the global approach from being viable. These limits only suggest that the strategy should include more thorough research of the market before expanding. After the research is done, the company can choose how to appropriately segment the market (Schlegelmilch 70).

Conclusion

Globalization can be used to create a successful business. IKEA utilized this to cut costs on production, expand into 33 countries, and become a brand known worldwide. The story of its rise was not without obstacles. Its difficulties in expanding beyond Europe have shown that there are limits to utilizing the same strategy everywhere. However, with a few adjustments based on regional preferences, the company became a success outside of Europe.

Works Cited

Burt, Steve et al. "International Retailing as Embedded Business Models." Journal of Economic Geography, vol. 16, no. 3, 2015, pp. 715-747, Web.

Mellahi, Kamel, and Jedrzej George Frynas. Global Strategic Management. Oxford University Press, 2015.

Olhager, Jan et al. "Design of Global Production and Distribution Networks." International Journal of Physical Distribution & Logistics Management, vol. 45, no. 1/2, 2015, pp. 138-158, Web.

Prange, Christiane. Market Entry in China. Springer International Publishing, 2016.

Schlegelmilch, Bodo B. Global Marketing Strategy. Springer, 2016.

Steenkamp, Jan-Benedict. Global Brand Strategy. Palgrave Macmillan UK, 2017.

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IKEA Company's Globalization Benefits and Limits - 565 Words | Case Study Example

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IKEA is a furniture company operating on a global scale. With stores all around the world, it had to adapt its strategy to the countries where the European approach proved unsuccessful. Nevertheless, IKEA is an example of a highly profitable global company.

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With 230 stores in 33 countries- For example, a balcony section of the store was introduced. Chinese apartments often have balconies, so it was a smart decision to capitalize on this regional difference (Prange 81). This change in strategy shows some of the limits of the global approach Before expanding into the United States, IKEA did not consider the differences between the US and European markets (Mellahi and Frynas 4). As the case study points out “Sofas weren’t big enough, wardrobe drawers were not deep enough, glasses were too small, curtains too short, and U.S. size appliances didn’t fit in the kitchens.” existed in many countries which allowed the firm to gains large economies of scale. Statistic shows that IKEA group is the world’s largest furniture retailer who has more than 301 stores and 30 franchised units. 

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With 230 stores in 33 countries- For example, a balcony section of the store was introduced. Chinese apartments often have balconies, so it was a smart decision to capitalize on this regional difference (Prange 81). This change in strategy shows some of the limits of the global approach Before expanding into the United States, IKEA did not consider the differences between the US and European markets (Mellahi and Frynas 4). As the case study points out “Sofas weren’t big enough, wardrobe drawers were not deep enough, glasses were too small, curtains too short, and U.S. size appliances didn’t fit in the kitchens.” existed in many countries which allowed the firm to gains large economies of scale. Statistic shows that IKEA group is the world’s largest furniture retailer who has more than 301 stores and 30 franchised units. 

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IKEA's digital transformation
strategies:
1.flow of goods
2.supply mechanism
3.store floorplans
4.how employers and managers need to operate at two speed (while operating from one space)
5.rapidly expanding data and technology

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“Shop & Go” feature in the IKEA app — available in a few countries — which allows you to use your own mobile device to scan, pay for items and skip the checkout line in the store. STRATEGY: requires a complete modernization and reengineering of all the tech landscape within IKEA. It also requires a different way of operating to fulfill the goods to be bought.

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How does going digital change a legacy retail brand? According to Barbara Martin Coppola, CDO at IKEA Retail, it's a challenge of remaining fundamentally the same company while doing almost everything differently. In this Q&A, Martin Coppola talks about how working in tech for 20 years prepared her for this challenge, why giving customers control over their data is good business, and how to stay focused on the core mission when you're changing everything else.

What does it mean for one of the world's most recognizable retail brands to go digital? For almost 80 years, IKEA has been in the very analogue business of selling its distinct brand of home goods to people. Three years ago, IKEA Retail (Ingka Group) hired Barbara Martin Coppola - a veteran of Google, Samsung, and Texas Instruments - to guide the company through a digital transformation and help it enter the next era of its history. HBR spoke with Martin Coppola about the particular challenge of transformation at a legacy company, how to sustain your culture when you're changing almost everything, and how her 20 years in the tech industry prepared her for this task.

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How does going digital change a legacy retail brand? According to Barbara Martin Coppola, CDO at IKEA Retail, it's a challenge of remaining fundamentally the same company while doing almost everything differently.

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IKEA OPEN URBAN STORES
They'll open 30 new stores in city centers, moving from their classic model of being on the outskirts of major cities to one where they're closer to where many of their customers live.

STRATEGY (adapt with new shopping behaviour)
1. no parking lot in the store plans = millennial prefer mobility without car
2.  smaller-format stores with its urban planning
3.offers consumer consultation for design smaller area
4.Increase delivery services (more online customer)

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https://www.retaildive.com/news/ikea-goes-after-urban-millennial-consumers/571310/

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Ikea appears to be going all-in on its strategy to attract more urban millennials by inching further away from its iconic warehouse-like spaces - at least in part.

Earlier this month, the Swedish home goods retailer began construction on a new store concept in Vienna, Austria. The seven-story building, located at the Westbahnhof train station, is set to be completed by 2021, according to the company's website.

However, unlike traditional Ikea locations that encourage consumers to come to stores and haul their purchases away with them, this store takes a different approach. With no parking lot in the plans, the Vienna location comes in stark contrast to its warehouse counterparts (like the Burbank, California, store that has 1,700 parking spaces).

"The concept focuses on the current megatrends and takes into account the dramatically changed shopping behavior as well as a new form of mobility without a car," the company said on its website. "Customers have little time and appreciate convenience."

Though shoppers will be able to walk out with some items in hand, products deemed too large to carry home will be delivered to them within 24 hours, the company said.

Ikea recently tested smaller-format stores with its urban planning studios in Paris, London and most recently on New York's Upper East Side. The stores offer consumers the opportunity to sit down with a consultant to learn about Ikea's products and plan out a design project. What they don't offer is the ability to walk out of the store with merchandise.

The Vienna store may align closer with a planned location in New York's Queens borough, which is set to open sometime this summer. That location is about a third of the size of a traditional Ikea store, but allows consumers to purchase items both in store and order for delivery.

Ikea's strategy to lure a younger set of customers living in cities has recently heated up. Last June, the retailer partnered with startup Ori to build out robotic furniture that helps alleviate the pains of living in tight spaces, and prior to that Ikea announced it would begin testing furniture leasing options in 30 markets this year.

The discussion forum on RetailWire asked its BrainTrust panel of retail experts the following questions:

Here are seven of the most insightful comments from the discussion. Comments have been edited by Retail Dive for length and clarity.

In big cities, delivering everything isn't new

Gene Detroyer, Professor, International Business, Guizhou University of Finance & Economics; Executive Director, Global Commerce Education : We have a new Ikea not far from where I am currently in NYC. There are no parking spaces. But why do you need them? They will deliver everything you buy.

Before we had Ikea in the city, we bought an Ikea kitchen in NJ. We rented a car (I haven't owned a car for 15 years, yea!) drove out and picked out the components. They delivered everything, from the smallest to the largest.

In Manhattan, this is not a new phenomena. It seems everybody delivers and has as long as I have lived here.

'A win-win for all parties'

Michael Terpkosh, President, City Square Partners LLC : I too love this concept. The multi-generational return to urban cores makes this type of store a great fit for U.S. metro areas. As baby boomers retire they don't want to have to lug around big, heavy boxes. Especially if they can get delivery and set-up. Young generations want the convenience without the sweat and without driving to the store. I see this as a win-win for all parties.

Urban businesses can thrive given changing trends

Bob Amster, Principal, Retail Technology Group : If Ikea (and any other retailer) can consistently deliver as promised, the urban stores can thrive without parking lots or garages. Trends are changing. Today's labor force wants to live in urban areas, ditch the automobile, walk or take public transportation. That all spells out that even retailers of furniture can do business in urban areas and everybody (the consumer, the retailer, and the environment) wins.

Kenneth Leung, Retail and Customer Experience Expert : I think this makes sense because of the convenience factor, some people want to shop close to home or online rather than drive out from urban centers. Given a lot of Ikea's target audience is small home in urban areas, with a proper delivery network, a location without parking on top of a transit village should work well.

Goes against what consumers have become accustomed to

Georganne Bender, Principal, KIZER & BENDER Speaking: Ikea sells a lot more than furniture, it sells home decor, accessories and grocery items. I can't speak for what goes on in other countries but I can tell you that here in the U.S. people still drive. Maybe not in big cities, but certainly in the suburbs.

Consumers go to Ikea because we can take what we buy home with us that day. You can't get near the Ikea closest to my house, especially on weekends, because the parking lot is always full to capacity. I get that Ikea is trying to help the environment, and I applaud that, but that's not how people shop here. Why mess with success?

The format doesn't cater to all shoppers

Richard Hernandez, Director, Affiliated Foods, Inc.: This is definitely an interesting format - it seems a lot easier to shop and like a better option for urban areas, but as Georganne mentioned, this is not how the suburban shopper shops Ikea. The Ikea nearest to me is packed towards the end of the week and all weekend. Maybe there could be an intermediate format that would still offer the best of this format and the best of the 300,000 square foot format?

Supporting cars are a major expense

Ken Lonyai, Consultant, Strategist, Tech Innovator, UX Evangelist: Presuming that there's quality research behind this, it makes sense to me. Parking lots/decks are major expenses and lots are a real blight in cities. Consumers are being offered options, so it's worth a real-world try.

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Ikea goes after urban millennial consumers

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Ikea appears to be going all-in on its strategy to attract more urban millennials by inching further away from its iconic warehouse-like spaces - at least in part. Earlier this month, the Swedish home goods retailer began construction on a new store concept in Vienna, Austria.

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product according to the region
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Samsung has had to cope with various changes in order to enhance the growth and development of the company

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Samsung has had to cope with various changes in order to enhance the growth and development of the company

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Change management refers to the approach that a manager, an organization or an individual uses to shift from one organizational state to another (Gans 2011). Change is inevitable, and changes always occur in various organizations. The prime concern for organizations, when it comes to organizational changes, is how well the stakeholders will adapt to change. Adaptation, control and effecting change are the most crucial aspects of change management. The main goal of change management is usually to reduce any negative effect of such change on the organization and employees through control of organizational change efforts (Gans 2011). Organizations have realized the importance of using various diagnostic models, used to undertake a systematic diagnosis of the organization.

The following report describes change management in regards to the Samsung Corporation. As a large Corporation, Samsung is constantly facing organizational changes every now and then. The paper will explore the use of the Force Field analysis as a diagnostic model for Samsung Corporation. The paper will give a brief analysis of the organization's internal, external and temporal environment. It will identify the key problems and inefficiencies that affect the organization and any interrelationship between the problems. The paper will also identify interventions and recommendations for the diagnosis.

Samsung background

Samsung is a multi- billion dollar, leading electronic company, having grown from its inception in Taegu, Korea in the year 1938 (DATAMONITOR 2010). It started off as a small export business, but now it has grown while specializing in digital products, memory, system integrations and media. Samsung products (especially the televisions and smart phones) are recognized all over the world due to the high levels of innovations and quality involved from production to distribution (Sustainability Report 2011). In the year 2007, Samsung exceeded annual sales of $100bn mark for the very first time in the history of the company (Khanna 2011). Samsung has been taking advantage of the global technological advancements, thus responding with advanced innovations, products and technologies that have enabled it to keep a competitive edge against its competitors.

A Brief Analysis of Samsung's Internal, external and temporal environment

In the internal environment, Samsung can be said to be particularly innovative when it comes to production of electronic products, thus realizing high profits (Sustainability Report 2011). Samsung has six design labs with approximately 450 staff who work in the design laboratories. In these labs, the staff's work is to understand customer needs through research, whereby they use approximately $6bn on research (Khanna 2011). The company has realized that it has strengths in gaining a strong hold in consumer electronics, high skilled labor is available to them, commendable focus on customer service and marketing mixes, loyalty of employees, strong management and increased sales due to low margin strategy. However, it also lacks brand recognition in mobile phone sector and has poor pricing strategies.

In the external environment, Samsung faces several threats and opportunities too. For example, it faces exceptionally high competition from other electronic and digital corporations such as Nokia, Apple and Sony in the mobile phone sector (Samsung Dost 2012). Because of growth of the flash memory industry, Samsung has been contemplating to shift from DRAM memory to flash memory (Sustainability Report 2011). Also, the customers are becoming very price- conscious due to the high concentration of suppliers. However, there are no temporal factors that may affect the company as per now.

Current Changes in Samsung Company

Samsung has had to cope with various changes in order to enhance growth and development of the company. Samsung recently decided to increase the number of employees in all branches across the globe in order to increase its workforce (Heejin et al. 2005). Having the many branches across the globe, Samsung has continued to employ more and more employees in Korea and outside Korea. The company either employs or outsources the work force, meaning that change management is crucial for the human resource department. By the end of the year 2010, the company had a total of 190,464 employees, whereby 95,662 worked in Korea, 94802 worked in international branches while 67,750 accounted for outsourced persons (Heejin et al. 2005). Every year, Samsung has been employing, contracting and outsourcing more and more employees. This reflects an aspect of constant change that occurs in most businesses, requiring significant management of change by the company.

The other change that is vital for the company is the introduction of a new global code of conduct that should guide each and every employee in the company. The code of conduct describes the expectations of Samsung upon all the branches and employees worldwide (Laczniak & Kennedy 2011). Samsung has introduced the global code of conduct in respect to its aim of becoming a world leading company while contributing to the betterment of the global society. The code is supposed to be followed by all employees and subsidiaries across the globe by complying with all laws and ethical practices as a socially responsible company. The code of conduct covers issues to do with law, ethics, culture, respect, safety and social responsibilities. This change should be implemented at all management and subordinate levels, and respected by internal and external stakeholders of the company across the globe.

Application of Force Field analysis as a diagnostic model for Samsung Changes

Force Field Analysis

The Force Field analysis refers to a diagnostic model developed by Kurt Lewin, used of various situations like in change management (Kruglanski et al. 2012). It is usually a vital tool for analyzing situations that deal with overcoming resistance to change in an organization or company (ORGANIZATION & MANAGEMENT THEORY, 2009). In his model, Lewin recognizes that there are two main opposing forces that act upon change in an organization. These forces are the driving forces and the driving forces. In other words, the driving forces express the factors that represent the desire to implement change while the restraining forces refer to the opposing forces that may hinder implementation of change in the organization (Van de Ven & Sun 2011). This can be expressed through a diagram as shown below:

Force Field Analysis - Kurt Lewin Source (Kruglanski et al. 2012)

The diagram above shows that the force field is usually in equilibrium between the two forces before the change is implemented. Therefore, for change to be implemented the equilibrium mus

t be interrupted by the addition of factors to either the driving-forces side or to the restraining- forces side (Bold 2011).

Problems and Inefficiencies affecting the organizational change

Based on the force field analysis, there are various driving and restraining forces that affect organizational change in Samsung. Considering the two changes mentioned above, the forces can be categorized as follows:

Driving forces based on (Samsung Sustainability Report 2011):

1. The C.E.O for Samsung is totally committed and dedicated to the success of these changes because they show that the company is growing.
2. The human resource department supports the code of ethics changes because it will offer guidelines to employees on what is expected or not expected from them.
3. The departmental managers support the addition of employees because some employees in various departments had been complaining of being overworked due to increasing work in the departments
4. Employees had complained of having no guidelines on how to act at the work place
5. The company will strike a balance between work and the number of employees assigned to various tasks within the company.

Forces against Change based on (Samsung Sustainability Report 2011)

According to the diagnostic model used (Force field analysis), it is vital to consider the opposing forces that resist change

1. The board of directors feel that it is not the right time to continue increasing the number of employees in the company. This is because it might impact negatively on the company returns because of the increase in the expenditure in terms of salaries.
2. The employees feel that the global code of conduct consists of too many rules that they may not be able to remember or effect in their daily operations.
3. Regional managers are worried about some of the rules in the code of conduct that may not rhyme with some local laws and regulations. They fear that the code of conduct may not recognize that different states, countries and governments may have laws and regulations that are in contrast with the global code of ethics
4. The finance department feels that there will be a strain on the finances once new employees are brought on board.
5. The existing employees feel that the additional new employees might come to take their positions in the company. They have feared that once the company employs more workers, their benefits from the company might be reduced with an aim of streamlining the salaries by a reduction.

Inter relationship between the above problems (the restraining forces)

The problems identified above (the restraining forces) have a relationship with each other because they all point towards resistance to change. Resistance to change refers to the behavior of individuals or groups once they perceive that the change that is just about to occur is a threat to them (Gans 2011). In essence, the board of directors feels that the increase in the number of employees has not been strategically planned especially due to the increase in the salary expenditure. This is the reason as to why they are highly resistant to such change. The board of directors shares those sentiments with the finance department. This can be seen in the resistance that the finance department has against employee increase in the company. They feel that the finances will be restrained because of increase in salaries.

The employees also exhibit resistance to change because they feel that the code of ethics will give them a hard time to adapt to its rules and regulations. The same case applies to the regional managers (those based outside Korea) who feel that the code of ethics will be hard to implement because different countries may have conflicting state and government laws. They are not sure how they should act in case a certain law conflicts with the state and country laws of the regions where they work. The existing employees are also resisting change in terms of employment of more workers in the company. This is because they fear that the salaries might be reduced to accommodate the growing work force. This means that there is always an interrelationship between the restraining forces in the Force Field Model.

Underlying Sources of Resistance to Change

Some individuals or groups of people may be having parochial self-interest. Parochial self interest refers to instances where individuals may be more concerned about their own interest, thus having a biased view caused by their perception of the change (Mariana & Violeta 2011). In this case, the existing employees may feel that the new comers will replace them in terms of benefits and opportunities to grow.

Also, the employees could be so engrossed in their normal operations, thus finding it hard to leave that habit and accommodate the use of code of conduct in their daily deliberations of their work. Habits can be extremely hard to change since they usually form a well-established base that has both comfort and security (Mariana & Violeta 2011).

Another underlying problem could be misunderstanding, whereby the regional managers could be having inadequate information. Communication problems can lead to resistance to change. If they had answers to their questions, may be they would not resist the implementation of the global code of conduct.

Also, the board of directors and the finance department could be having different assessment of the situation. When individuals or groups assess situations differently, disagreements may arise over the need for change (Shin et al. 2012). One group may find it advantageous whereas the other group feels otherwise.

The employees could also be harboring fear of the unknown and negative economic implications. Organizational changes always generate fear and anxiety due to uncertainties (Mariana & Violeta 2011). Employees may perceive that certain changes will bring negative impacts on their rewards, benefits and pay. All the above reasons are vital to the operations of the organization and the underlying issues need to be sorted out through change management.

Intervention to tackle the problem of resistance to change

The first intervention would be to communicate effectively regarding the changes that are to be implemented. Communication refers to the aspect of explaining to all stakeholders the necessity of implementing change in an organization (Thomas et al. 2009). The C.E.O (being in the fore front of change implementation) should understand the value of explaining to all employees and regional managers of the importance of adding more employees in the organization and the advantages of having the code of conduct within the company. For example, the CEO may explain to the regional managers that in case the local laws do conflict with the global code of conduct for Samsung, the local laws should be preferred against the code of conduct. That way, the regional managers, will understand that it is easy to implement such a change. Any communication should be direct, honest and accurate to enable employees to understand the whole picture (Shin et al. 2012).

The second intervention would be facilitation, training and support. Facilitation and support can be vital tools of overcoming resistance to change (Patt, & Julie 2012). Support can be facilitated through listening to the involved parties (employees, finance department and regional managers), and providing the necessary guidance depending on the queries that may arise. The management can listen to why the employees are resisting change and assure them that the change is not a threat to their positions; rather, it is for the betterment of each person and the overall company. The company should also listen to the board of directors and the finance departments. This is to ensure that they can all come up with a strategic plan regarding the salary that the new employees will be paid.

Action Plan and Recommendations

1. The Chief Executive Officer should first discuss the issue of introducing new employees with the board of directors and the finance department. Communication and involvement of every party is vital for the success of the change implementation (Mariana & Violeta 2011). This is because the three crucial bodies of the organization seem to be in conflict due to the inadequacy of information. He should call a meeting with the concerned parties and explain the importance of adding new employees and the source of funds for their salaries.

2. After the meeting, the C.E.O should write a memo to all employees and regional manager, explaining the importance of the global code of conduct, while explaining how to act in case the rules and regulations in the code differ from countries outside Korea. This can be done through the web, to ensure that it is fast, confidential and efficient in reaching the many employees within and outside Korea.

3. The company should then conduct a video conferencing with all regional and departmental managers to explain to them that the employee changes will not affect the salaries for the existing workers. This should then be communicated by the line manager to their subordinates in order to remove any negative perceptions or fear amongst the employees.

4. After ensuring that all the questions from employees, board of directors and finance departments have been answered and that every stakeholder is ready to accept change, the CEO should authorize the hiring of new employees and introduce the new code of conduct to all employees.

Conclusion

The above report describes change management in regards to the Samsung Corporation. Samsung is constantly facing organizational changes every now and then because of its size in the electronics industry. The paper has explored the use of the Force Field analysis as a diagnostic model for Samsung Corporation. The model has successfully determined the driving forces towards change and the restraining forces against change, thus giving the organization an opportunity to find ways of resetting the equilibrium. The paper has also given a brief analysis of the organization's internal, external and temporal environment. It has identified the key problems and inefficiencies that affect the organization and any interrelationship between the problems. The set of interventions given above can significantly ensure that all stakeholders accept change and overcome factors that cause resistance to change.

Personal Input to the overall assignment

I started the paper with thorough research of the relevant topic. I researched regarding management and change management from various sources. Apart from research, I undertook reflection of the management course, especially all the diagnostic models that I had learnt in the course. After going through all the models, I chose one that I applied in the assignment. I settled for the Force field model, and I embarked on more research regarding the model. Having been given the opportunity to choose one organization among any private, public and voluntary organization, I chose Samsung Corporation. Samsung is a private company that has a lot of changes due to its large size. I did a lot of research about the company especially the changes involved in the company currently. That is how I came up with the employee hiring and the introduction of the code of conduct. I had the opportunity to access all these information through peer-reviewed journals related to Samsung Corporation.

References

Thomas, G, Zolin, R, & Hartman, J 2009, 'THE CENTRAL ROLE OF COMMUNICATION IN DEVELOPING TRUST AND ITS EFFECT ON EMPLOYEE INVOLVEMENT', Journal Of Business Communication, 46, 3, pp. 287-310, Business Source Complete, EBSCOhost, viewed 26 June 2012.
Patti, M, & Julie, S n.d., 'Management training and national sport organization managers: Examining the impact of training on individual and organizational performances', Sport Management Review, 15, pp. 288-303, ScienceDirect, EBSCOhost, viewed 26 June 2012
Shin, J, Taylor, M, & Seo, M 2012, 'Resources for Change: the Relationships of Organizational Inducements and Psychological Resilience to Employees' Attitudes and Behaviors toward Organizational Change', Academy Of Management Journal, 55, 3, pp. 727-748, Business Source Complete, EBSCOhost, viewed 26 June 2012.
Mariana, P, & Violeta, S 2011, 'OPPORTUNITY TO REDUCE RESISTANCE TO CHANGE IN A PROCESS OF ORGANIZATIONAL CHANGE', Annals Of The University Of Oradea, Economic Science Series, 20, 2, pp. 698-702, Business Source Complete, EBSCOhost, viewed 26 June 2012.
Kruglanski, A, Belanger, J, Chen, X, Kopetz, C, Pierro, A, & Mannetti, L 2012, 'The Energetics of Motivated Cognition: A Force-Field Analysis', Psychological Review, 119, 1, pp. 1-20, ERIC, EBSCOhost, viewed 26 June 2012.
'ORGANIZATION & MANAGEMENT THEORY Conference Paper Abstracts' 2010, Academy Of Management Annual Meeting Proceedings, pp. 1-133, Business Source Complete, EBSCOhost, viewed 26 June 2012.
Van de Ven, A, & Sun, K 2011, 'Breakdowns in Implementing Models of Organization Change', Academy Of Management Perspectives, 25, 3, pp. 58-74, Business Source Complete, EBSCOhost, viewed 26 June 2012.
Bold, O 2011, 'A Perspective on Organizational Change Issue - Case Study on the Application of Two Change Models', Review Of International Comparative Management / Revista De Management Comparat International, 12, 5, pp. 871-882, Business Source Complete, EBSCOhost, viewed 26 June 2012.

Sustainability Report, 2011. Global harmony with people, society and environment.

http://www.samsung.com/us/aboutsamsung/ir/corporategovernance/corporatesocialresponsibility/download/2011Environmentalnsocialreport.pdf
Heejin, L, Ji-Hwan, L, Jiman, L, & Chongju, C 2005, 'TIME TO CHANGE, TIME FOR CHANGE: HOW WAS TIME USED TO CHANGE A GLOBAL COMPANY?', Academy Of Management Annual Meeting Proceedings, pp. F1-F6, Business Source Complete, EBSCOhost, viewed 26 June 2012.
Laczniak, G, & Kennedy, A 2011, 'Hyper Norms: Searching for a Global Code of Conduct', Journal Of Macromarketing, 31, 3, p. 245, EDS Foundation Index, EBSCOhost, viewed 26 June 2012.
'DATAMONITOR: Samsung Group' 2010, Samsung Group SWOT Analysis, pp. 1-9, Business Source Complete, EBSCOhost, viewed 26 June 2012.
Khanna, T, Song, J, & Lee, K 2011, 'The Paradox of Samsung's Rise', Harvard Business Review, 89, 7/8, pp. 142-147, Business Source Complete, EBSCOhost, viewed 26 June 2012.
'Samsung Dost - an interactive program for stakeholders and partners - Press Release issued by Samsung Electronics Company Limited', 2012, Pakistan News Releases (Islamabad, Pakistan), 26 May, NewsBank, EBSCOhost, viewed 26 June 2012.
Gans, K 2011, 'Should You Change Your Thinking about Change Management?', Strategic Finance, 93, 4, pp. 48-50, Business Source Complete, EBSCOhost, viewed 26 June 2012.

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change management in samsung report examples

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example of report on change management in samsung

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Change Management In Samsung Report Examples | WOW Essays

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Change management refers to the approach that a manager, an organization or an individual uses to shift from one organizational state to another (Gans 2011). Change is inevitable, and changes always occur in various organizations. The prime concern for organizations, when it comes to organizational changes, is how well the stakeholders will adapt to change.

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Culture refers to a set of shared values, beliefs and social practices in an organization and strategy refers to a set of action plans to achieve the long term goals of the organization. The impact of culture on the organizational strategy of Cadbury, a British multinational confectionery company owned by Mendelez International is discussed in this essay. An organizational strategy refers to how the company plans to allocate their resources in order to support the business activity of the company such as production, marketing and production.Cultural diversity has great influence in the business organization when it is being seen globally. When business is no more limited to its normal geographical boundary it becomes necessary to involve local people in the workforce along with parent countries, so it becomes very necessary to develop a common culture within the organization to meet the requirements of business objectives. So from other point of view cultural diversity becomes the need for the organizations going globally.

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Kraft adds marketing experience to board – Marketing Week

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Kraft Foods has appointed two new independent directors to its board, who are both notable for their brand building and marketing experience.

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Kraft adds marketing experience to board

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Cadbury relies on organizational strategy in order to plan to achieve its long term goal. The takeover of Cadbury, the 186-year-old British company, especially by an American multinational like Kraft, had caused waves of public protests and The Mail, one of the British newspapers had run a “Keep Cadbury British” campaign. Many people thought that the takeover of Cadbury by Kraft Foods,  an American food manufacturing and processing conglomerate would act as a threat to Cadbury as Andrew Bonfield the finance director of Cadbury states that “Cadbury group culture would be diluted if the company swallowed a large multinational group such as Kraft”. However, Kraft offers a chance for Cadbury to emerge in markets and in higher-growth sectors. Kraft’s chairwoman and chief executive, said “It transforms the portfolio, accelerates long-term growth and delivers highly attractive returns,” and from this Cadbury could also increase their revenue stream which can be reinvested into the company’s subsidiaries. Cadbury is able to set the highest bar making it impossible for other chocolate and confectionery companies such as Hershey.

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Cadbury celebrates diversity through chocolate

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Here, we discuss ways brands can build credibility when getting involved in cultural or hot-button conversations Read more.

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Cadbury also embeds culture as a crucial factor when it comes to branding strategies. Cadbury’s main goal is to focus on the needs and wants of consumers and what differentiates their products from the competition to develop more sales in the market. Confectionary consumers have relatively similar needs but also local cultures can also cause preferences of taste and because Cadbury chocolate is sold all over the world they need to adapt their products to the culture, lifestyle and beliefs of consumers in that area. For example, Cadbury has made flavours such as Durian and Pandan Coconut for Malaysia and Vegemite flavoured chocolate for Australia. Not only does Cadbury celebrate preference in taste but also diversity. In India, Cadbury launched a chocolate bar called ‘Unity’ which has dark chocolate to white chocolate all in one bar.  From this, the consumers from the specific community will be attracted and therefore increasing the sales revenue. However, there would be an increase in cost to promote in order to create a new USP and new packaging. As new Cadbury products are more expensive than old ones, customers often do not acknowledge new products. Therefore Cadbury needs to ensure that their products reach their targeted audience.

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-merging of separated national markets into one global marketplace - The remove of barriers to cross border trade have make the firms can sell their products globally-are many potential markets with the high growth rate especially Asian market -Asian market is viewed as one of the main markets for global economic growth. The market is believed to grow at 6.1% at year 2015 and 6.2% in year 2016 under the forecast-gains large economies of scale-oducts due to the globalization of production. It helps the firms to reduce operation cost by getting cheaper raw materials. Besides, partnering with local suppliers can make sure the supply chain process is smooth and lower the overall production cost. IKEA has more than 43 manufacturing units over 12 countries and opened its first wholly owned manufacturing facility in Jiangsu, China. This factory is producing wooden furniture and interior decoration materials and will supply to most of the stores in China

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-merging of separated national markets into one global marketplace - The remove of barriers to cross border trade have make the firms can sell their products globally-are many potential markets with the high growth rate especially Asian market -Asian market is viewed as one of the main markets for global economic growth. The market is believed to grow at 6.1% at year 2015 and 6.2% in year 2016 under the forecast-gains large economies of scale-oducts due to the globalization of production. It helps the firms to reduce operation cost by getting cheaper raw materials. Besides, partnering with local suppliers can make sure the supply chain process is smooth and lower the overall production cost. IKEA has more than 43 manufacturing units over 12 countries and opened its first wholly owned manufacturing facility in Jiangsu, China. This factory is producing wooden furniture and interior decoration materials and will supply to most of the stores in China

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Inhaltsverzeichnis

1. Introduction

2. Main Part
2.1 What type of organizational culture is most representative of IKEA?
2.2 What are three things that IKEA had to learn in order to do business effectively in the United States?

3. Conclusion

References:

1. Introduction

"A better everyday life at home"- the globally recognised slogan of the multinational corporation IKEA. Since the foundation of IKEA in 1943 ¹ by Ingvar Kamprad, the company has developed and changed considerably; from a small Swedish furniture distributor to an internationally successful company and the only global player in the furniture distribution industry.

Nowadays, the 76-year old company has a reputation for its affordable prices, decent quality, reliable delivery service, strong company values and culture ² and for a merry feeling. On the one hand, IKEA represents a do-it-yourself spirit, because of its' flat-packed furniture and the involvement of customers in the value-adding process. On the other hand, they attract customers with family friendly shopping and offer an environment where people can visit the store to look around and have some fun. The Swedish furniture company has a balanced focus on product range, sourcing, vertical integration, mass marketing, cost leadership and a distinctive image.

Western Europe represents 80 percent of its annual sales volume. They deliver furniture to all parts of Europe, North America, Middle East and even parts of Asia. However, IKEA faced plenty of challenges when entering the United States (US) market. IKEA's business strategy did not result from strategic planning, which is still described today in the company as "too sophisticated" ³. Instead, it developed from creative responses to difficult problems, turning problems into solutions, not going by the book and learning by doing. By analysing IKEA's international expansion retrospectively, it is obvious that the situation could have been handled in a more effective way. Therefore, the purpose of this case study is to outline what IKEA had to learn in order to expand successfully in the US.

2. Main Part

2.1 What type of organizational culture is most representative of IKEA?

The culture of IKEA is focused on equality in the workplace and is orientated to the person. The Swedish company has an "Incubator Culture", because of its "informal, open and caring" ⁴ management style. IKEA recruits people who are looking for a "pleasant working environment, job security and the caring attitude it shows towards the individual" ⁵. Its fulfilment-oriented culture encourages all workers to take initiatives, to "express their ideas"3 and to take responsibility.

2.2 What are three things that IKEA had to learn in order to do business effectively in the United States?

In 1985, IKEA entered the American market, starting at the east coast, after having entered most countries in Europe. However, the path for IKEA has not always been as easy as many might think. When entering the US, IKEA had to face numerous challenges. In the following, I will focus on three aspects that IKEA had to learn in order to do business effectively in the US.
1) Changing their corporate culture
First of all, I want to mention that IKEA underestimated the differences in corporate culture. Hofstede's cultural dimensions distinguish countries from each other with regard to their degree in power distance, individualism, long-term orientation, indulgence, masculinity and uncertainty avoidance. ⁶ Comparing Swedish culture to American culture ⁷, it comes as no surprise that these two countries differ heavily. Hereafter, I will focus on the differences in power distance, individualism and masculinity.

Firstly, the power distance is greater in the US than in Sweden; therefore, American employees were not used to a non-hierarchical management model, where every employee can raise an idea. Americans expect their managers to tell them what to do. In Sweden, their corporate culture is important to bind the team together and they concentrate on consensus-based decision making. The employees should be able to transmit their knowledge to others and managers should act as "missionaries" to make sure that the "IKEA Way" is understood. The "IKEA Way" includes "cooperative informal relations" ⁸. However in the US, this is often seen as undermining the respect and prestige of the boss since power distance is more important for them. For example, no title appears on the business card of a Swedish to make clear how irrelevant hierarchy is.

Thus, the US is one of the most individualistic cultures in the world, whereas Sweden has both collectivistic and individualistic traits. Individuals in the US prefer acting as individuals rather than as members of groups. ⁹ As a consequence, for Americans it was very unusual that the needs of a group were more important than individual needs at IKEA. For instance, instead of structured training programs, IKEA focused on open discussion and explanation.

In addition, American culture is masculine, which is defined by Hofstede as "a situation in which the dominant values in society are success, money and things" ¹⁰. Swedish culture is rather feminine, which explains IKEA's focus on caring for others in the work environment. Therefore, the American workers were unsatisfied with the flat hierarchy of IKEA. It was very difficult for non-Scandinavians to work their way up the corporate ladder, as IKEA believed one should learn from their experiences, which takes time and patience. Additionally, most of the key positions remained in the hands of Swedes and therefore, there was nearly no opportunity for career advancements for Americans. This was an issue due to the fact that Americans are more competitive and want to be rewarded with individual accountability for results. For instance, regardless of one's position at IKEA, every company car was the same economy model. Overall, the Americans required pay and recognition for performance and problem solving at IKEA since challenges and wealth are crucial values for them.

All the differences I have pointed out show that America can be assigned to the "Guided Missile corporate culture" which is characterized by performance, empathy and project-orientation. Individual expertise is of great importance ¹¹. Loyalty to one´s profession and work are often greater than loyalties to the organization itself. The pursuit of chosen lines of personal development is constant. On the contrary, Sweden is allocated to a corporate culture called "Incubator" focused on equality, as mentioned above.

As you can tell, the management style differs. IKEA focuses on learning by doing instead of going by the book. Managers are expected to share knowledge and skills and employees express ideas and take responsibility within their positions. American employees were used to working according to the motto "you get what you work for". Therefore, the Swedish management had to learn that the employees in the US had difficulties with the flat hierarchy and the informal structure of IKEA. Consequently, Americans need to have the opportunity to climb the ladder of success.
2) Considering national preferences
IKEA had to learn that there is a difference between the Swedish customers and the American customers. Culturally specific requirements for home furnishing in the US are considerably different than the European market. Due to the national responsiveness, IKEA had to learn to consider the consumer taste and to adjust floor plans and furniture for American consumers.

IKEA customized their product range, as they realised that they could not sell identical products in different countries. At the beginning, IKEA didn't consider these differences and the range of furniture they offered was unsuitable for the American market. Some examples will clarify what I mean: Customers in the US purchased flower vases thinking they were American-sized drinking glasses. IKEAs beds and dining tables were not big enough, they did not offer furniture suitable for the "home entertainment centres" common to many American homes, and the sitting room furniture was not durable enough. These examples illustrate how IKEA had to learn to adjust their product range according to national preferences.

"Americans are always looking for convenience, which means more space, more information, and anything that reduces effort and saves time." ¹² Therefore, IKEA redesigned its store layouts, providing more directions and short cuts for customers. For IKEA, it was crucial in the US to remodel the store layout to attract customers with family-friendly shopping and people who just want to come to the store to look around and have some fun, too. Before the change, Americans felt lost and panicky in the Swedish store without windows and signs. Thus, some customers wanted home delivery. Therefore, IKEA started renting roof racks and invented a simple assembly tool, which has become another of its trademarks.

To take specific national preferences into account was a consensual process that required many negotiation skills. One huge progress to implement the change was to raise the autonomy of the American managers. IKEA learned to adjust their store layout and product range due to the differences of American customers. This change has been vital to increase IKEA sales in the US.
3) Do not over adapt
Considering the adaptation, IKEA asked themselves: "Should we become an American company?" ¹³ IKEA had to learn how much they should adapt. They realised that they should take into consideration national preferences, however they also learned how important the "IKEA Way" is. The "IKEA Way" was strongly rooted in the personality of founder Ingvar Kamprad and the Swedish (regional) culture that he grew up in. It affects organization, communication, marketing, product range and store layouts. For IKEA, it is vital to stay close to their roots because their furniture is unique due to the "IKEA way". The furniture is a cultural statement and the Swedish style has come to exemplify.

Only limited numbers of changes were allowed (around 10%), because changes were more expensive for country managers and they required many negotiation skills. The product manager has the final say, but he typically listens to the country manager. "There is a healthy tension between the two and this enables us to adapt but not over-adapt." ¹⁴ Considering all the cultural differences, IKEA always wanted to focus on its "IKEA Way". IKEA learned, that they do not want to completely adapt because it is necessary to focus on their competitive advantage, which is the style of IKEAs furniture and stores, especially in a country like the US where competition is high.

For instance, IKEA always locates their stores on cheap land. As a consequence, they were not in prime areas, where the high-income customers are; instead they were in shopping centres. But why does IKEA need this segment? Outside of Scandinavia IKEA is a niche player, appealing to the educated population with mid- to upper- level incomes. Even though IKEA was not located in the prime centre, due to both their catalogue (people planed their purchase) and the profile of a "different kind of store" ¹⁵, IKEA has overcome this impediment. This shows that even though they did not locate their stores like competitor furniture outlet "Home Depot", they still appealed to customers because of their "IKEA Way".

Furthermore, the Americans were confused that their Swedish co-workers never showed emotions in the workplace. From the American perspective Swedish managers are always calm even in conflictual situations. This shows Parochialism because the Americans saw the Swedes through their own eyes. To overcome this, the Swedish management does not need to adapt because it is the Americans who need time to change perspective and get used to the way Swedes interact. Even though IKEA had to implement changes regarding their corporate culture, "long-term employees generally feel more comfortable with Scandinavian managers than with Americans." ¹⁶ This shows that even if Americans have a different culture, most of them might get used to the Swedish manager style, too.

IKEA learned to stay close to its roots being highly distinctive in foreign marketplaces. "The IKEA strategy in North America will still be blue and yellow, but we will put more stars and stripes and more leaves in it" ¹⁷, as Carstedt pointed out.

3. Conclusion

Taking the above into consideration, one can say that IKEA had to learn various things when expanding to the US. IKEA is one example for showing that the Globalization Imperative is not true. It is a belief that one worldwide approach to do business is the key to efficiency and effectiveness ¹⁸. On the one hand, IKEA had to customize products and store layout and adapt the corporate culture. On the other hand, IKEA learned that it is essential to be closely connected to their roots and spread the "IKEA Way" as good as possible.

In my opinion, IKEA was not aware of the huge difference between the cultures. This impacted the Americans working in the company, as well as potential American customers. To run a business effectively, firstly, one needs a positive work climate which includes both motivated local employees who can identify with the company and communicate effectively. Secondly, a product range, store layout and marketing communications that appeal to the potential customers in that country are necessary. Therefore, it was crucial that IKEA started to understand the American culture.

This case study made it clear to me how paramount managing intercultural differences is. Firstly, a lack of cultural awareness is one main trigger for facing challenges in a new market. Secondly, it is human tendency to underestimate these dissimilarities. In the economy, they do not think of intercultural differences as reasons for failure. Awareness, open-mindedness, empathy and tolerance are keys for adapting to a new culture and indispensable for starting or even growing your business in foreign countries. In view of the above, it becomes clear why IKEA had several difficulties with expanding their business in the US. Nevertheless, I believe IKEA tried to spread the Swedish culture and business operations as their distinguishing feature, which had been shown to be successful in other countries, rather than adapt to the American culture.
[...]
¹ https://www.ikea.com/ms/fr_MA/about_ikea/the_ikea_way/history/1940_1950.html

² https://seeacareerwithus.com/about-us/our-values/

³ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 223

⁴ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 224

⁵ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 227

⁶ Geert Hofstede is a Dutch social psychologist who is renowned for his cultural dimensions theory. He identified six dimensions of culture "that help explain how and why people from various cultures behave as they do." (International Management: Culture, Strategy and Behavior by Fred Luthans and Jonathan P. Doh)

⁷ https://www.hofstede-insights.com/product/compare-countries/

⁸ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 224

⁹ Learned in lecture

¹⁰ International Management: Culture, Strategy and Behavior (Fred Luthans and Jonathan P. Doh)

¹¹ International Management: Culture, Strategy and Behavior (Fred Luthans and Jonathan P. Doh)

¹² International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 230

¹³ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 226

¹⁴ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 226

¹⁵ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 229

¹⁶ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 227

¹⁷ International Management: Culture, Strategy, and Behavior (Hodgetts, Richard M.): Page 229

¹⁸ Learned in lecture

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GRIN - IKEA managing cultural diversities

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1. Introduction 2. Main Part 2.1 What type of organizational culture is most representative of IKEA? 2.2 What are three things that IKEA had to learn in order to do business effectively in the United States? 3. Conclusion References: "A better everyday life at home"- the globally recognised slogan of the multinational corporation IKEA.

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they realised that they could not sell identical products in different countries. At the beginning since IKEA didn’t consider these differences and the range of furniture they offered was unsuitable for other countries. As example : Customers in the US purchased flower vases thinking they were American-sized drinking glasses. IKEAs beds and dining tables were not big enough, they did not offer furniture suitable for the “home entertainment centres” common to many American homes, and the sitting room furniture was not durable enough. These examples illustrate how IKEA had to learn to adjust their product range according to national preferences.

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they realised that they could not sell identical products in different countries. At the beginning since IKEA didn’t consider these differences and the range of furniture they offered was unsuitable for other countries. As example : Customers in the US purchased flower vases thinking they were American-sized drinking glasses. IKEAs beds and dining tables were not big enough, they did not offer furniture suitable for the “home entertainment centres” common to many American homes, and the sitting room furniture was not durable enough. These examples illustrate how IKEA had to learn to adjust their product range according to national preferences.

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 Samsung recently decided to increase the number of employees in all branches across the globe in order to increase its workforce (Heejin et al. 2005). Having the many branches across the globe, Samsung has continued to employ more and more employees in Korea and outside Korea.

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 Samsung recently decided to increase the number of employees in all branches across the globe in order to increase its workforce (Heejin et al. 2005). Having the many branches across the globe, Samsung has continued to employ more and more employees in Korea and outside Korea.

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History: In 1824, John Cadbury began selling tea, coffee, and drinking chocolate in Bull Street in Birmingham, England. From 1831 he moved into the production of cocoa and drinking...

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https://www.linkedin.com/pulse/changing-face-retail-digital-transformation-ikea-part-banerjee-1f/

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In my previous post on The Changing Face of Retail, I had referenced IKEA amiong the few succesful firms who have been able to make a transition. Why not look at this as a test case to see how Retail can step up to the challenge of today. Here's an indepth four part series on the Digital Translation of IKEA.


Part -I, covers the challenges faced by IKEA, and a background analysis of IKEA's traditional consumers and how changes new markets, and changing consumer behaviour creates an imperative for Digital Transformation. This part ends with identifying the key elements of a succesful digital transformation and how IKEA's senior leadership went about this.

Part -II, breaks down IKEA's business into different process domains (going from external- Consumers, to Internal- Back end), and looks at the recent initiatives in each. We will take a close look at some of the initiatives rolled out/ and possibilities in COnsumer Insights and Consumer Engagement.


Part- III, is devoted to Consumer Commuincation, which is extensive and deserves a separate article by itself.

Part- IV, The concluding part looks atthe remaining process areas- Innovation, Last Mile Connect, Logistics/ Leaner Business, and summarizes the overall impact with public domain data.]

In Part- II and Part- III of this series, we looked at changes that IKEA has made to external (consumer facing processes), in this part we will look at public domain information of changes made internally and to processes at intersection of internal and external fields.
D. Last Mile Connect:
Click-And- Collect- The company was one of the early adopters of Click-And Collect options for online shoppers, rolling out it's first UK Click-and-Collect point in 2015. The option which rewards online shoppers with a small gift card helps the firm in saving on rental space. As consumer driving habits change (with fewer and fewer people keen on driving long distances to buy), the need for opening smaller stores inside cities grows. Click and collect, offers a win-win way out. The recent announcement of a hybrid strategy for its stores in Mumbai is an indicator in this direction. Navi Mumbai, in the suburbs (which is about 2 hours from a central district like Bandra) will have a traditional big box store, however, to capture demand from the South and Western Mumbai and the central districts, the company plans on opening smaller stores with a selected offering and options to buy online and pick-up.

Self Check Outs/ Automatic Checkouts- With their pro's and cons have been around for a long time. IKEA debuted this as early as 2005, and have mixed experiences across geographies. First, the positives- saves space, manpower, and can be a rewarding experience for consumers (long checkout times are regulalry cited by consumers as one of top three Retail pain points). Yet despite all of this there are pains- scope of shop lifting, consumer push back as it dehumanizes the retail experience, etc.

Payment Solutions- Recognizing the changing face of Retail and online, in 2016 IKEA started accepting payments through PayPal in certain markets. With the introduction of digital wallets, IKEA has also started accepting Apple Pay, Google Pay, and for crucial future growth geographies like China and India, IKEA has gone the extra mile accepting AliPay, WeChat Pay, Union Pay (only online), RuPay ( India's domestic Card Payment System), UPI (India's homegrown instant mobile payment system, NEFT (as a large number of Indian consumers still prefer direct bank transfers for large ticket purchases)

Acquisition of TaskRabbit- Well, some of us love the joy of adult LEGO, while some feel it's a bother. Certainly, some of the larger pieces from IKEA, challenge even the best. As IKEA ventures out beyond its strongholds in Europe and N. America, into newer countries where a DIY culture has not been there historically, it will face this challenge. IKEA's acquisition of TaskRabbit for USD 90 million in Sep 2017 was a step in this direction. IKEA was not only acquiring a business to help its consumers, but also signalling its intent to play a part in the larger gig economy. TaskRabbit which matches online free labour with demand. Based on reviews at TrustPilot.com (User rating 4.6 at time of publishing) and consumer site PennyHoarder on how gig-economy workers are making up to USD 2000 weekly, the direction seems to be right. The question will be how IKEA scales this up across geographies.
E. Innovation:
IoT Products and Smart Homes-Convergence of rise of smart devices and energy saving has fueled the home automation category. By 2024, the category is expected to be worth greater than USD 150 billion. IKEA has been dappling in the category since 2012, and its most prominent TRÅDFRI hub and lights range over time has gotten better. Already IKEA's Smart Home devices are compatible with Alexa and Google Home, and in 2019 IKEA and Xiaomi upgraded their strategic partnership for IoT and Smart Home. Not only is this significant given the 132 million devices IoT already in China, but also has potential for future markets (like India and Africa) where Xiaomi has made beachheads with their affordable technology. (Check out the below VLOG on how it works)
F. Logistics/ Leaner Business:
AI Enabled Reverse Logistics- In Oct 2019, IKEA-USA announced a pilot with Optoro, followed by acquisition of a minority stake in the firm. Roughly 1.5% of IKEA's sales ends up as waste in a landfill because of customer returns. Optoro's software, using analytics and machine learning, aims to reduce this by diverting excess stock and material returns to stores where they can be sold/ given, away to charity (if the cost of returns outweigh the cost of repackaging and selling). The initiative is important from POV of improving bottom line while simultaneously addressing sustainability (Reduce, Reuse, Recycle)

Inbound Logistics/ Cutting down waste- Managing over 9,000 products, across 400 plus locations, a company has to have supply chain savvy. Even then IKEA has been willing to open up an already successful business process to digitization. One of IKEA's key initiatives was employing JDA Software Inc. to streamline its supply chain business. One of its recent initiatives has been of end-to-end streamlining of its Food Business which contributes to about 5% of total revenues. Globally, input costs form close to 30% of food prices, and about a third of that is due to pre-consuemr and post-consumer wastage. The initiative aims at bringing IKEA restaurants on the same POS as the rest of the business, digitize inbound logistics, food prep, and use advanced predictive analytics to manage variability of demand. Overall the project has a potential of impacting PAT up to 0.5% of revenues. Rather substantial considering annual turnovers in excess of USD 40 billion.

CHIP (Connected Home over IP)- December 2019, saw Apple, Amazon, Google and the ZigBee Alliance to come together in a common working group to create a secure, seamless protocol that will enable creation of common ecosystem where devices are portable. Once completed by 2021, this should give a huge fillip to the whole home automation category. IKEA being a board member of the Zigbee Alliance is already invested in the process. So in future, you can be sure of using your Voice Assistant (Siri, Google Home, Alexa, Bixby, Cortana, Tmall Genie) to communicate with your IKEA lights, fridge, microwave). If you ask me, CHIP has the potential to do to home automation, what IBM's Open Architecture meant for the PC segment in 1980.

Robotic Furniture- In Jun 2019, IKEA tied up with Ori, a spinoff of MIT's Cityhome project, to produce robotic furniture. Targeted at urbanites in city with high rentals, the robotic furniture solution, ROGNAN, for an all-in-one unit that can be transformed into a bedroom, walk in closet, workspace or living room. It integrates ORI's robotic platform and IKEA's PLASTA Storage solution.

Now that we have gone over how IKEA driven by an imperative to change, commenced upon a Digital Transformation, driven by senior leadership, with a nuanced approached to a culture change, looking at different parts of the value chain to 'Change Everything,﻿ Almost', let's have a quick look at how this has affected the company's fortunes.

1. Industrial Design- Though there is no public domain news of IKEA having joined the bandwagon of Industry 4.0 in Generative Design, the scope of impact is huge. Not only does Generative Design, hold out the possibility of reducing design time by crunching numbers and exploring more alternatives faster, but scope of designing sturdier, use less materials (sustainability), and ensure faster production through Concurrent Engineering.

2. Customer Experience (CX)- Self Checkout, has had mixed acceptance globally. Significant proportion of consumers still have adverse reactions to the technology. Auto Checkouts, can provide a seamless, friction free medium to address both consumer needs and the need to cut down on manpower in stores. Amazon-Go has already demonstrated the success of Auto-Checkout. Advances in Sensing, AI and IoT is increasingly bringing down the barriers to widespread adoption. The question for IKEA is "Not Why, but When?"

3. Customer Engagement- In the Middle East IKEA has been trying to engage customers in Pop Up stores in malls with a Virtual Reality experience, allowing them them to design and visualize predefined rooms. IKEA used this to identify new store locations (Kuwait, Oman). Now, its a great engagement tool as you can see in the video below, but there is tremendous scope here. One of the key pain areas for consumers in Decor space (paint, home furnishing, modular kitchens, flooring), is the inability to visualize how their homes are going to look. Short of hiring an interior designer, consumers feel extremely jittery about the whole process. Perhaps in acknowledgement of this need the company offers a design service through its Planning Studios in some locations. What would be a game changer would be if through a convergence of smart sensors/ measurement services, the company could render individual homes in a walk through, at hand designers (initially, but later on with Machine Learning Virtual Assistants) could help consumers build out their home before they made purchase decisions. It's not only about selling IKEA stuff, but building an ecosystem that could be monetized as an affordable design service with other vendors being co-opted. After all isn't IKEA's vision, "To create a better everyday life for the many people"

At a time when other Retailers have been struggling, the firm has returned significantly better results. Retail Sales have continued to grow over past year (+ 6.5%), though operating profit was marginally down by about 5%. Significantly online sales have increased by close to 50%, and the company has indicated that the investments in business transformation will be higher than the previous year ($193 million), and the company is absorbing this rather than passing it on to consumers. While it's early days to make an unequivocal comment on the efficacy of the transition, IKEA's digital transformation holds lessons for all.

Post Script: Before I conclude, here's my wish list of areas I wish the firm would explore in this journey (of course, the firm may already be exploring some of these ideas, but I could not find anything in public domain).

Disclaimer: This disclaimer informs readers that the views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual. The author has no relationship with IKEA (paid and/ or unpaid) or any of its subsidiaries.

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The Changing Face of Retail: Digital Transformation at IKEA- Part IV

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In my previous post on The Changing Face of Retail, I had referenced IKEA amiong the few succesful firms who have been able to make a transition. Why not look at this as a test case to see how Retail can step up to the challenge of today.