The KEA business idea case study
The very fact that KEA produces and sells its own furniture is because of diversification. KEA started out as a small firm which sold products as ‘diverse as watches, Jewelry and picture frames’, however as time grew they sought out new markets. For example, they consulted with child psychologists’ to gain a better understanding of children’s needs and built special kids areas in stores.
3. To begin with KEA expanded in Europe which was relatively simple as the core competencies of the company translated well In these countries.
KEA prefer to Just go out and look’ when exploring new markets and while this works on the most part, some needs must be tailored to In some countries. For Instance In China, customer’s do not Like the idea of assembling the furniture themselves. So KEA added a small fee-based assembly service. Since the cost of labor Is low In China, this allowed KEA to adapt while maintaining Its core competencies.
Similarly In the U. S KEA adapted to the needs of the American public for example by Introducing bigger glasses to cater for Americans great desire for Ice.
Also Americans ‘profoundly’ deedless walling at ash registers so, simply, KEA added more cash registers In their stores. These are small tweaks which allowed KEA to make a profit in the U. S while keeping its core competencies in tact.
4. From Kike’s website we found that the KEA business idea is: “We shall offer a wide range AT well-Selenga, Autumnal none Turnstiles products at prices so low Tanat as many people as possible will be able to afford them. ” We can see by this answer that Kike’s core competencies remain the same. This is the idea behind company as a whole, keeping it simple by producing quality products at a low cost.