Assignment – KEA
The values and design philosophy of the founder continue to underpin the brand. These values might be summed up as frugal, democratic, environmentally aware, and design oriented. KEA has become synonymous with Swedish lifestyle.
The stores are virtually Identical across the globe and sell a range of globally sourced lat-packed furniture products as well as a range of related furnishings for the home ?the stores offer customers a Swedish experience by incorporating restaurants and a variety of customer services intended to simplify the shopping process (e. G. , childcare). What is interesting about KEA is that customers have become a significant part of the value creating process?customers play a key role in terms of logistics and in production.
By performing the assembly of the flat-packed furniture, customers complete the final stages In the production process. In terms of logistic, the customer “moves” goods from warehouse-style storage through the checkout, and then transports the goods home.
The trade-off for the consumer is lower prices and immediate gratification?furniture is typically sold using Just in time (SIT) inventory management, which means that once a customer has placed an order, the furniture then goes into production and Is delivered to the customer’s home some 3-4 months later.
Kike’s senior management has in the past pursued an aggressive expansion policy, but management is currently changing direction, adopting a slower rate of expansion and investing in existing stores. The company plans to increase sales by 10% a year to 2020, thereby doubling annual sales revenues. Management is concerned about how expansion in the BRICK countries, particularly India and China, Is pursued. There are fears about preserving the company’s culture In these huge markets (Milne, 2013). Sources: http://WV.
Kea. Com/ms/en_us,’this-is-Kea/company-information/index. HTML Milne, R. (2013, September 1). Kea signals slower expansion. Financial Times.
What do you think? What would you do? What problems do you foresee and how will this impact Kike’s Swedish concept? Please recommend a marketing solution that will alp KEA achieve growth in either India or China based on your understanding of the place P and how delivering the value is evolving. Please use the case study guldens below to perform a brief analysis, Identify the implementation of the solution that you believe is the best fit. Case Study Guidelines 1 .
Analysis of the Current Situation?The proper context must be established for the case analysis. Please provide a SOOT analysis in a SOOT box.
Research: Identify the key environmental factors such as industry trends, level of competitiveness, customer perceptions, legal considerations, and evolving technology t the outset of the analysis. Summarize the key aspects of the internal environment of the firm in terms of strengths and weaknesses and the external environment in terms of opportunities and threats to the firm in your SOOT box. . The Target Market?latently your target market: Who is your target customer? In terms of demographics and lifestyle, what aspects of consumer behavior provide insights into this group of customers? 3. The Problem?altercation of key problem(s).
It is easy to identify symptoms of problems while failing to identify the real problems. For example, declining sales may e identified as a problem, when the decline is only symptomatic of more complex problems that are harder to observe.
Make a clear distinction between what is identified as the problem and the symptoms of the problems. 4. Alternative Solutions?latently and evaluate alternatives. Develop reasonable alternatives and evaluate them in terms of feasibility, projected costs advantages, disadvantages, and potential short-term and long-term consequences.
5. Recommended Course of Action?Select a course of action and provide the appropriate strategies and tactics to accomplish the chosen course. Justify your choice in terms of your analysis.
As most practitioners know, charting a course of action can be a difficult Job, but implementation is the true challenge. Produce a workable action plan that would have a reasonable probability of success in the implementation phase.
Develop a minimum of five slides to present the findings of your analysis. Some additional research is expected. The KEA website is highly informative. Use PAP format and include an additional slide with your sources.