Tag Archives: SWOT analysis

IKEA Opens its First Store in India

IKEA has opened its first store in India. The store, located in Hyderabad, cost roughly $100 million to build and is an estimated 400,000 square feet. The company plans to have up to 25 stores in India by 2025.

India has a large and complex retail base. The country’s 1.3 billion people account for about $30 billion per year for furniture and household items. However, unlike the U.S., 95% of the goods are sold through small shops that offer specialty products or single-category stores. IKEA’s broad product mix and store operations had to be significantly revised for India. While the store layout is similar to other IKEAs, the displays are different, featuring hundreds of products priced at 100 rupees or less ($1.45 U.S.).

To research how India’s people live and shop, employees visited about 1,000 homes in different areas of India to understand consumers’ needs. Some differences: most Indians do not use knives to eat, women are shorter than Europeans, and children often sleep in the same room as their parents until they are school-age. In addition, India’s government requires foreign-owned, single-brand retailers to use local suppliers for 30% of the value of the goods sold in India.

IKEA, the Sweden-based multinational, now owns and operates 415 stores in 49 countries around the globe. With revenue in excess of $42 billion (U.S.), and an estimated 12,000 products, the company uses more than 1% of the world’s commercial-product wood.

It’s not always easy to change, but entering a new market requires research and revision.

Group Activities and Discussion Questions:

  1. Ask students about their experiences at IKEA. What works, doesn’t work?
  2. View the IKEA India website: https://www.ikea.com/in/en/
  3. A video of IKEA India store is available at: https://economictimes.indiatimes.com/industry/services/retail/ikea-says-namaste-to-indian-customers-as-it-throws-open-its-first-store-in-hyderabad/videoshow/65340339.cms
  4. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats.
  5. Divide students into teams. Have each team develop a SWOT for IKEA in India.
  6. What are the issues and risks?

Source:  Goel, V. (7 August 2018). Ikea opens first India store, tweaking products but not the vibe. New York Times.

 

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Harley-Davidson Takes Over Ryder, ND

The motorcycle season is upon us, and this season, motorcycle manufacturer, Harley-Davidson, has a goal to take over an entire town and help every town resident get a motorcycle license. The town is Ryder, North Dakota, population 85. (Yes, that’s correct, 85 people.)

The company is partnering with Ryder, which has agreed to change its name to “Rider” for the 2017 motorcycle season. The town is the envy of other small towns as Harley-Davidson repainted the town’s water tower (which is a replica of the company’s water tower) and included the company name on one side. As the mayor stated, “The tower was in dire need of a paint job.” There has also been a street dance and party, along with stationary motorcycle for practice shifting gears. Harley-Davidson’s goal is to have Ryder become the first town in America where everyone has a motorcycle license.

Will this be enough to help the company though? Harley-Davidson is seeing slow sales, increased competition, an aging Baby Boomer consumer base, and an uninterested millennial market.

How about it – do you have a motorcycle license?

Group Activities and Discussion Questions:

  1. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  2. Show Harley-Davidson Web site: http://www.harley-davidson.com
  3. Video of the promotion: https://youtu.be/Ds3HugeXjHs
  4. For Harley-Davidson motorcycles, break students into teams and have each team build a SWOT analysis grid.
    1. Strengths: what is company good at?
    2. Weaknesses: what needs work?
    3. Opportunities: what is going on in marketplace?
    4. Threats: what should company be wary of?
  5. Based on the analysis, what are the issues and risks that might occur?
  6. Debrief by building SWOT analysis grid on the white board.

Source:  Milwaukee Journal Sentinel, Brandchannel.com, other news sources

 

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Drive for Free in Ad-based Cars

car

Want to rent a car for free? If you are in the Santa Monica area, then check out WaiveCar. The company, launched in January, provides a fleet of Chevy Spark electric cars that are resplendent with advertising on the vehicles. In essence, the cars are mobile billboards for companies. Companies pay to display their ads, and drivers gain free use by taking the cars/ads around town.

WaiveCar rents its cars for two hours at no cost. If the rental goes longer, then the price is $5.99/hour. It is simple to use. Download the app, register, and find a car near you. The reservation holds for 15 minutes while you get to the car. The car unlocks when the mobile app detects that the driver is within 10 feet of the car. The driver removes a key from a sensor in the glove box to activate the car and drive away.

When the ride is over, a map on the dashboard GPS will show where to drop the car off. The car also monitors the electric charge and reminds the driver about charge level and driving range. Cars are only allowed to go within a 20-mile radius of the company headquarters in Santa Monica. WaiveCar expects to expand in the Los Angeles area and in three new cities.

Go ahead – take a drive – it’s free.

Group Activities and Discussion Questions:

  1. Discuss different promotional tactics that can be used outdoors.
  2. Show WaiveCar’s Web site:

Waive Car: https://www.waivecar.com/

Video explanation of how the program works:

https://youtu.be/WAPlGKNJlQw

  1. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats (internal and external factors).
  2. For WaiveCar, break students into teams and have each team build a SWOT analysis grid.
    1. Strengths: what is company good at?
    2. Weaknesses: what needs work?
    3. Opportunities: what is going on in marketplace?
    4. Threats: what should company be wary of?
  3. Based on the analysis, what are the issues and risks that might occur?
  4. Debrief by building SWOT analysis grid on the white board.

Source: Ad Age Daily

 

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