B207A Shaping Business Opportunities

Questions: Business Innovation at IKEAIkea is a Swedish based multinational corporation that designs and sells ready-to-assemble furniture and home accessories. IKEA is the largest furniture company in the world. It is known for its modern architectural designs, as well as its attention to continuous product development, operations details, and cost control.   IKEA relies on design innovation to bring great quality and beautiful designs to the market and its stores by collaborating with the best designers from various parts of the world. It has developed cost efficient and innovative methods to match people’s expectations of price and quality.   Answer all the three following questions in relation to IKEA. You can use your study material and other resources to write your answers. Use your own words and adhere to the wordcount specified for each question.   Question 1: Innovation at IKEA (30 marks, 300 words)A.    Why is IKEA an innovative company? Support your answer with examples. (10 marks)B.    Discuss the role of four business functions at IKEA. Give at least two innovation examples for each business function at IKEA (20 marks)   Question 2: Product offering and targeting (30 marks, 300 words)A.    Discuss the three levels of a product by using the HAMARVIK mattress as an example. (15 marks)B.    Discuss the four targeting strategies. Which targeting strategy does IKEA use for its mattresses. Justify your answer. (Check the mattress section on the IKEA website before answering this question) (15 marks)   Question 3: The marketing mix and innovation (40 marks, 500 words)IKEA’s marketing strategy consists of market segmentation, targeting, positioning and the marketing mix. IKEA’s marketing strategy enables the company to be a successful player in the global market. Using your B207A course material, evaluate how the innovation in IKEA’s marketing mix elements are used to position the products within the minds of consumers. Your answer should contain the following: 1-    IKEA’s market segmentation and targeting2-    What is positioning. How is it related to the marketing mix?3-    Examples of IKEA’s marketing mix elements and their contribution to brand positioning.