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Case Study Analysis of IKEA and ZARA

Category: Business Paper Type: Case Study Writing Reference: APA Words: 1250


IKEA is one of the world’s largest and renowned furniture and retailing brand that originated from Europe and expanded all around the globe with successful internationalization of its low cost furniture and household provision strategies. Although, IKEA is famous for its items that too at cheap rates but this strategy only worked for European and other far apart overseas countries but still IKEA had to face a lot of challenges in its expansion in many regions especially in Asian countries like China where the low-cost strategy wasn’t even accepted to be low-cost rather the items were still found to be bit expensive by the Chinese market. Initially, IKEA worked on its generalized standards providing the same designs and sizes all around globally but the rising challenges made IKEA to adopt the System Management Theory that believes that a company’s evolution and strategies should work like organs of a human body and components should adapt differently to the changing needs and requirements of the environment it has to work in. a system theory is crucial for the deep analyzation and understanding of all the information logistics required for security management that explains the information security management strategies that predict the outcomes for management for successful implementation of the viable rules and regulations to be employed for adaptive measures. (Hong, 2003) The effectiveness of the organization doesn’t solely work with the social and human integration rather many economic and traditional aspects of the environment needs to be catered for smooth running of the business that allows pragmatic functioning of the valuable image in the minds of consumers and their perceptions about the brand and how smoothly does it work for them especially where the company sets up their new installment in all new regions not local to them. (Cole, 2004) Considering the case Kamprad who tried to incorporate all the meaningful and necessary measures to embark the quality campaign same throughout its work standards and the policy about its products for all the regions to be identified as same and in response to the increased competition in the Chinese market where the locals started copying the designs of IKEA’s basic tools and items, the company still had to undergo changes in it production of its items as per dimensions suitable for the residents of China e.g, the bed size that was acceptable all around the world was not acceptable in china and different size was suitable for Chinese market with different algorithms. The acceptability of the company depended on how well IKEA adapted to changes and how well it anticipated and satisfied the customer needs to earn the same level of brand value in Asian countries that it had earned globally around other countries. (Grant, 1994) the company’s strategical approach worked on the basis of combination of procedural requirements and information relevant to the needs of customers as well as environmental changes (Majchrzak, 2012) e.g, the use of plastic bags that were environment friendly and customers had to pay for those bags which was quite easily acceptable in European countries but the Asian countries were totally new to this concept and they didn’t like the approach of paying extra for the shopping bag, hence IKEA had to consider some exceptions solely contingent for new environmental needs.


ZARA International is the ultimate go to fashion Retail Company that moves rapidly with the on-going trends and with growing number of shoppers all around the world, Zara comes under the parents company Inditex which is known very well for its strong yearly on-going sales that keeps earning the brand the ultimate position in consumer’s minds and as a first choice for fashion requirements. ZARA is one of the world’s leading fashion brands that grows day by day for its ultimate new designs and availability of all of its products coherently all over the globe with quickest shipment and retailing throughout its outlets no matter what the region is. ZARA follows the administrative management theory that keeps the efficiency of the brand consistent and valuable in consumer’s minds with utmost satisfaction e.g, the quick and refined delivery of ZARA items makes the customers to make repeated orders and sometimes for the same items that they had already bought without the fear of their favorite items going out of stock as the main policy of the brand is to keep providing the customers with their favorite designs throughout their desire for having hold of them favorite choices of articles and the basis of quality and the perfect customer service that makes them to repurchase. (Lopez, 2009) ZARA works with the policy of keeping the shelves’ not stacked with the inventor rather works with on-time production and when needed to stop wastage of the bulk items that go useless at the end for no customers to buy them. Zara has employed the firmest techniques and policies to keep the brand intact with fundamental ideological objectives. (Okumbe, 1988) ZARA’s effective modules for contingency and administration has made the brand to be role model for many renowned brands all around the worlds that should employ the same consistent administrative techniques. (Singer, 1976) Inditex has deployed all the necessary policies to keep the functioning for a smooth administrative system going well with the brand name in consumer’s perceptions such as maintaining the designs, production for all the inventory system to be available promptly throughout the countries for instant delivery, distribution and retail sales to ensure the optimized flow of goods and without having the need to share with any stakeholder. (Waldo, 2006) ZARA keeps the sale tracking system well managed and organized by using the basics of an administrative management theory that requires proper forecasting, planning, organizing, commanding, coordinating and controlling the chain system of the company to keep the flow smooth and this also ensures specialized production of garments for the designs based on fabric collected from various regions of the world to provide customers with unique and matchless designs that no other brand could have achieved and this is reason Zara hold a special place in the market with its organized system of loaded inventory and perfect customer care unit. (Ghemawat, 2003)

References of IKEA and ZARA ANALYSIS

Cole, G., 2004. Management theory and practice. Cengage Learning EMEA..

Ghemawat, P. N. J. a. D. M., 2003. ZARA: Fast fashion (Vol. 1). Boston, MA: Harvard Business School..

Grant, R. S. R. a. K. R., 1994. TQM's challenge to management theory and practice.. MIT Sloan Management Review.

Hong, K. C. Y. C. L. a. T. J., 2003. An integrated system theory of information security management.. Information management & computer security..

Lopez, C. a. F. Y. .., 2009. Internationalisation of the Spanish fashion brand Zara.. Journal of Fashion Marketing and Management: An International Journal..

Majchrzak, A. a. M. M., 2012. Technology affordances and constraints in management information systems (MIS). Encyclopedia of Management Theory,(Ed: E. Kessler),. Sage Publications, Forthcoming..

Okumbe, J., 1988. Educational Management: Theory and Practice. African Books Collective Ltd., The Jam Factory, 27 Park End Street, Oxford OX1 1HU, United Kingdom (paperback: ISBN-9966-846-42-5, $18)..

Singer, E. a. W. L., 1976. The triumph and failure of Albert Speer's administrative genius: Implications for current management theory and practice.. Singer, E.A. and Wooton, L.M., 1976. The triuThe Journal of Applied Behavioral Science, 12(1), pp.79-103..

Waldo, D., 2006. The administrative state: A study of the political theory of American public administration. Transaction Publishers..

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