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Journal Review
Food in IKEA: A Strategy to Support the Core Business
In the journal title Food in IKEA: A Strategy to Support the core Business, Business and
Management Research Vol. 1, No.4:2012 Sciedu Press published which is written by Dario A.
Schirone has discussed in his journal regard the implementation of food-marketing policy as
collateral service to the core business by IKEA. As known, IKEA is a company that popular
among customers with selling home furnishing products which is consider as their core business.
However, apart from selling furniture, IKEA also popular with their food which are meat ball,
chicken wing and etc. This is one of the strategy implement by IKEA in order to support their
core business and result from the implemented strategy has help IKEA in boosting their business
sales. In a study by Pace and Schirone (2011) has point out that in order for the company to
remain competitive as well as to grow their target customers, company need to modify their
strategy. In other study by Perchinunno and Schirone (2012) stated that other than focus on the
core business, companies also need to shift their focus on other support activities to increase their
sales. Therefore, this is what IKEA done in order to support their core business and luckily it
brings success to their business. In addition, the authors verify in his journal that there is a
connection between the individual purchase intention and the supply of ancillary service to the
company core business. Besides, the author also identify the use of food as a promotional
incentive increase consumer demand by affecting the dynamics of the consume mindset and lead
to create the need of buying. So, the role food plays is not limited to simply strengthening the
starting business but it also creates a self-supporting business both identified and supported by
customers (Dario, 2012).
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References
Pace, R. &Schirone D. A. (2011). Over 65, un nuovo target per chi fa marketing.Firenze:
Neodemos.[Online] Available:http://www.neodemos.it/index.php?file=onenews&form_id_notizia=541.

Perchinunno, P. &Schirone, D. A. (2012). Cluster Analysis for strategic management:A case study of
IKEA. Computation Science and its Applications ICCSA 2012, vol. 7334 LNCS, 88-
101.http://dx.doi.org/10.1007/978-3-642-31075-1_7
















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Journal Review
IKEAs International Expansion
In the journal title IKEAs International Expansion, International Journal of Business
Knowledge and Innovation in Practice Vol. 1, No.1:2013 Sapient Press published which is
written by Clayton Harapiak concern in his paper regard IKEA as a global retailer that
intentionally designed their products in order to cater the younger generations that more prone to
purchase low costing, portable contemporary furniture and home furnishing products. Therefore,
as result from the younger generation demand, IKEAs main corporate strategy was focuses on
offer their customers with low priced product with contemporary designed and functional
products (Bloomberg, 2005; Time, 2009). IKEA will ensure that their price is cheaper compared
to their competitors. So, in order to offer low price product, IKEA has spent more time by doing
research and development in order to find a new method to produce product cheaper. In addition,
IKEA also strengthens and maintain their good long term relationship with suppliers. For
example, IKEA has built good relationship with their supplier at Vietnam. Therefore, result from
that relationship, Vietnam suppliers offers low cost labor and inexpensive raw material.
According to Hill and Jones (2005) has discover that strategic global outsourcing of product
manufacturing has enabled IKEA to effectively reduce their product prices and finally lead to
international expansion. Moreover, IKEA have pursued a global expansion strategy through
entering countries that have high growth in GDP such as China and Eastern Europe. Other than
that, IKEA also expand their business into developed countries like US and Japan. The author
did mention in his study that IKEA already success in implementing their strategic business
models in numerous countries like Europe, North America, Asia Pacific and Russia.
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References
Bloomberg Businessweek. (2005, November 14). IKEA: How the Swedish retailer became a
global cult brand, pp.32-36.

Hill C. W. H. & Jones, G. R. (2005). Strategic Management Cases. University of Washington
Press: Washington, D.C.

Jonsson, A. (2008). A transnational perspective on knowledge sharing: Lessons learned from
IKEAs entry into Russia, China, and Japan. The International Review of Retail, Distribution and
Consumer Research, 18, 1, p. 17-44.

The Times 100. (2009). Swot analysis and sustainable business planning. In Times Newspaper
Limited.







5

Journal Review
When Global Expansion Meets Local Realities in Retailing: Carrefours Glocal Strategies
in Taiwan
In this journal written by Richard Chinomona and Dennis Sibanda (2012) discussed in their
paper regarding how global retailers utilize glocalization process and glocal strategies in order
for them to survive and succeed in East Asia. Generally, glocaliation is a situation where the
global retailer changes their product into another shape in order to cater with local customers
need. Therefore, glocal strategy is a strategy done by global retailer as a way to meet the local
customers need. In this paper, the authors used Carrefour glocalization strategy in Taiwan as
references since particularly they succeeded their business in that country. So, from authors
opinion, a strategy viewpoint from Carrefour in Taiwan might be beneficial to retailing
practitioners in order for them to succeed. According to past study by Kamath and Godin (1989)
stated that Carrefour is one of the earliest retailing companies that globalize their business
ventures into Asia country in year 1990 and particularly first success in their business venture in
Taiwan by year 1989. By having a company motto We are global, we act local, they will adapt
their business with the different cultures and environments in that particularly country they enter.
This is because they want to cater with the need of the local market but at the same time not
losing their core global identity. The authors discover that in Taiwan, Carrefours glocal
strategy was pertaining to the idea of understanding and responding to local needs, which include
the needs of final and intermediate customers, competitors and the macro environment. In
addition, Carrefour also approaching each market differently in order to meet local needs.
Therefore, Carrefours glocalization process in Taiwan were involved with entry strategy,
expansion strategies, positioning strategies, sourcing strategies, promotion strategies, and human
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resource development strategies. All the strategies done in order to suit with the Taiwanese
culture, language, threats from local competition as well as the Government of Taiwan retailing
policies. For entry strategy, Carrefour Company has entered into Taiwan retail market through
form of joint venture with a Taiwan a local company called Uni-President Enterprises which is
largest local supplier of domestic products at Taiwan. This joint venture strategy provide an
advantage to Carrefour because they could rely on Uni-Preident Enterprise and at the same used
their experiences in Taiwan retailing business in order to understand the Taiwanese market as
well as gain knowledge on Taiwanese culture, customer preferences and buying habits.
Meanwhile for Expansion strategies, Carrefour has adapted and develops membership
warehouse-style stores on industrial land. This is because they want to remove the disadvantages
brought to hypermarket development by land use regulations. Next, Carrefour has adopted
positioning strategies where they emphasize good shopping environment for customers. This
strategy is considered as one of the most important element in determining firms success. Then,
in term of sourcing strategies, Carrefour has operated under decentralized operating system. The
stores managers and department manager has been given operational authority in term of fresh
and processed food. Meanwhile, the local managers will made final decision on merchandise
selection, promotion, inventory control and management. While in human resource development
strategies, Carrefour train their local staffs in order to maintain their global standard. Lastly, in
term of promotion strategies, Carrefour has implement mix of global standards and locally
inspired innovative strategies such as credit card strategy, membership card, and aggressive price
strategy and etc. Therefore, all those strategies bring success to Carrefour in Taiwan.


7

References
Kamath, P., & Godin, C. (2001). French Carrefour in South-East Asia. British Food Journal,
103(3), 479-494.http://dx.doi.org/10.1108/EUM0000000005616















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