Extract
[...] The furniture market has been disrupted by a creative destruction process linked to the development of digital technology. First, new 100% online players like Centimètre or Made.com have emerged, offering disruptive economic models centered on personalization and configuring furniture directly on the internet. On the other hand, traditional distributors have had to adapt to the digital developments, such as But or Amazon. These digital upheavals have forced all distributors to rethink their economic models deeply. Digital technology has therefore generated a true technological break, disrupting the entire furniture market. [...]
[...] In addition, environmental regulations promoting ecological transition, such as carbon taxation, encourage Ikea to relocate some of its production to France and thus contribute to job creation. Finally, the policy implemented to combat unemployment, which is expected to reach historically low levels by 2020 according to economic forecasts, is likely to increase the purchasing power of French households and thus the potential demand for Ikea products. Thus, thanks to these national economic policies, the macroeconomic environment appears overall favorable to the group's development projects in France. 3. The Ikea group takes advantage of the mechanisms of tax and social competition between European states. [...]
[...] However, the Intellectual Property Code prohibits the use of an identical or similar mark for identical or related products or services without the consent of the holder, as indicated in Articles L713-2 and L713-3. Here, 'e-ké@' is used for online sales commercial activities, thus in a sector directly competing with that of Ikea. This similarity is likely to deceive some customers into believing that it belongs to the Swedish group. It thus causes economic and image damage to Ikea, which legitimately owns the primary brand. [...]
[...] This relocation has enabled Ikea to significantly reduce its manufacturing costs. More recently, Ikea has chosen to relocate certain production activities to France, taking advantage of measures to reduce labor costs, such as the CICE mentioned in Annex 2. This targeted relocation strategy demonstrates the group's ability to take advantage of differences in social policies between countries. 4. Study of Ikea's macro-environment according to the PESTEL method: P - Politics: - Reduction of corporate tax rate, relief from charges (Annex - Environmental regulations favoring relocation (Annex E - Economic: - Sustainable growth of the French economy 2017-2020 (Annex - Decline in unemployment, increase in household purchasing power (Annex S - Social: - High standard of living of European consumers - Evolution of lifestyles and the relationship with housing T - Technological : - Development of e-commerce, of VR (appendix - Innovation in manufacturing processes (appendix E - Ecological : - Environmental regulations (appendix - Increasing customer sensitivity to carbon footprint L - Legal : - Competition regulation, industrial property (annexes In conclusion, the macro-environment appears generally favorable for Ikea with favorable political, economic, and technological factors, even if legal and ecological requirements also constitute constraints to be integrated into its strategy. [...]
[...] The brand founded on innovation also relies on open innovation via co-creation with its customers, in order to improve its solutions permanently. Finally, Ikea focuses its communication on a more transparent and proximal relationship with consumers. Thanks to this unique combination of cost control, customer experience and digital strategy, Ikea is therefore able to stand out on a demanding market. 9. To remain competitive on a constantly evolving furniture market, Ikea must demonstrate a permanent capacity for innovation. In fact, annex 8 shows that the brand must develop the personalization of its offer further to meet the growing expectations of increasingly demanding customers and to move away from the standards that are criticized. [...]
