The Globalization of Markets
The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace. 1 The Global retailer – IKEA has benefited from globalization of markets. IKEA converges global middle class who are looking for lower-price and attractively designed furniture and household items as its target market. When multinational consumers to be its target customers, the amount of consumers will be increase and its offerings should have more chance to be chosen. After globalization of markets, sales figure are very likely to be increase.
By offering the products to different national countries, reputation of IKEA should have a nice improvement. IKEA uses the same basic formula worldwide for its target market. IKEA has benefited from the creation of its own global market. It serves this target market by offering plenty items to those shoppers to gain more revenue. Although IKEA offers a lot of home-furnishing items, the production design reflects the simple clean Swedish lines that have become IKEA’s trademark.The layout resonates with Chinese style. It can reduce cultural difference of the two countries.
The Globalization of Markets Essay Example
Moreover, stores are located near public transportation that IKEA offers delivery services so that Chinese customer can get their purchases home. It is because China car ownership is not very popular. The sales will rise since the consumers’ transportation cost and time cost can be reduced. For those operations difference in tastes and preferences are important and need to pay attention while work in a global market. IKEA created some homogeneous features across markets.