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Related And Supporting Sectors Marketing Essay


To discuss Porters Gem Theory and show a good knowledge of the theory I'd like to describe that four feature of a country embrace Porter's Stone of national gain. They are:

Factor conditions

Demand conditions

Related and supporting industries,

Firm strategy, structure and rivalry businesses Strategy

Factor conditions (i. e. the country's position in factors of production, such as skilled labor and infrastructure)

Factor conditions refers to attempts used as factors of development - such as labor, land, natural resources, capital and infrastructure.

This reverberation much like standard trade and industry theory, but Porter argues that the "key" factors of creation are twisted, not hereditary.

Particular factors of production are skilled labor, capital and infrastructure.

Factor situation identifies inputs used as factors of production - such as labor, land, natural resources, capital and communications.

This sounds just like standard profitable theory, but Porter argues that the "key" factors of creation are manufactured, not innate.

To discuss theory's talents, contribution, usefulness and weaknesses I'd like to make clear that the Diamonds Model can be an economical model which was developed by Michael Porter in his own booklet named Competitive advantages for Nation.

Theory's talents:

This model assists with ahead understanding about the position which can be gained in the Global Competition. This model can be well utilized in major geographic areas.

Theory's contribution:

This model assists with the philanthropic that ratio of the factors would actually decrease the competitive improvement, because of the reason he launched a fresh thought known as 'Clusters' in other words 'a band of organized businesses, suppliers, connected commerce and organizations arising in other locations. '

Theory usefulness:

Porter designed this gemstone condition model to details the situation of national benefit. The model would demonstrate the most appropriate countries demonstrate for their industries.

Theory weakness:

Criticism on Porter's nationwide diamonds model resolves around lots of hypotheses that underlie it.

The main weakness of the theory is that Porter generalized from the North american case; for developing countries the model may be incorrect.


For applying the idea to 1 of my home country's sectors, which is competitive internationally, I choose IKEA. IKEA is a home and office furnishing items vend store which has more than 175 stores worldwide. This paper discusses IKEA's approaches for the New Dehli market. Our target market in New Dehli would be the discriminating consumer, who cares about design, quality, and the appearance of the house or work place. We will satisfy all the needs of our customer with a combination of useful quality products with original furnishing ideas, at a competitive price. Our online marketing strategy will concentrate on positioning our company as a supplier of quality, well-designed efficient furniture with excellent individualized services. Because of this differentiation of the brand we will allocate resources primarily for creating consciousness and then for retaining customers. Our findings point out that emphasizing on large range and personalized services. Our marketing programs will positively support continued development and success through effective execution of the strategy.



- IKEA has generated its own important factors such as skilled resources and technological base.

- IKEA is replacing / deploying resources over time to meet the demand.

- New innovations / new methods have given the local industry the comparative benefits.

The Porters Stone Theory can describe the reason why for the competitiveness of IKEA. IKEA is an international home and office furnishing store preparing to type in the India market originally with New Dehli. The idea of IKEA is new because of this market as there is no store providing such an array of quality and functional products. The store is very service-oriented unlike other competition.


-a more demanding local/ global market has given IKEA the international / nationwide advantage.

-a strong development placing local market has helped local companies anticipate global tendencies.

Our findings suggest that the Porters Stone Theory can clarify the reasons for the competitiveness of IKEA. IKEA is providing its customers the opportunity to generate a home or work environment expressing who they are.


-local competition has generated enhancements and cost performance for the IKEA.

-this has also place the pressure on local suppliers to lift up their game.

The Porters Gemstone Theory can elucidate the reason why for the competitiveness of IKEA. Our closest opponents in the New Dehli region are Designer's Guild and Chen One which display its products on the line of IKEA. Their product line is also quite similar from what we offer albeit narrower. However, there are numerous stores which provide our quality-conscious target market who mainly sell furniture e. g. InterWood, Heavens, Mohkam's. Outside our niche market are numerous home furnishing stores multiply around New Dehli. These basic rivals are nowhere near our products in conditions of quality and design but they still create a hazard. People choose lesser quality, mainstream furniture due mainly to their cheap.

IKEA's Home Brand competitors:

1. Chen One - This retail store is very popular among the upper course of New Dehli and it is part of Chenab Band of industries. It had been the first to offer IKEA-style home furnishing items in New Dehli. However, its range is not very wide. In recent months it has exposed a new section in the first floor of its store which exhibits furniture. This demonstrates the demand of its furniture has increased. However, we have noted that the grade of its offerings appears to be inconsistent using its prices. It is more popular because of its textiles such as foundation units, dresses and baby collections alternatively than its furniture. Regarding to its supervisor at the New Dehli store, the store has experienced a 50% increase in its sales in the last 5 years and tasks even brighter sales in the years to come. This prediction reveals an opportunity for our company because our range is wider than Chen One with better quality and competitive prices.

2. Designer's Guild - This store also offers furniture and other home furnishing items and suits the upper school of New Dehli. Its range is wider than Chen One and its prices are also lower. It's been in this industry for the last 5 years and has made very good improvement. Its owner has also given dazzling predictions for this industry and its earnings. Although its principle differs considerably from IKEA we still contemplate it as a larger threat than Chen One due mainly to its wider and better range. However, its store space and services aren't comparable to IKEA.

IKEA's general opponents:

IKEA has many standard competitors by means of the many furniture shops, decoration items shops and area of expertise stores advertising common home furnishing items distributed all around the city. It also markets rugs, textiles, table wares, playthings and children's furniture and accessories. The grade of its products is average; however, it is regular with the prices it's charging. Lately it has become quite popular because of its lower prices.

IKEA's Work Line's challengers:

The office furniture retailers of New Dehli generally do not provide useful and well-designed furniture. IKEA's Work Line is significantly more advanced than the stores in New Dehli. The closest competitor producing high quality and ergonomically fit office furniture is InterWood. However, it only produces timber furniture and its own range is not very wide. It basically produces made-to-order furniture. Its power lies in the actual fact that its quality is of the best expectations and it has the self-confidence of its clients.


-local conditions have damaged IKEA various strategy.

-local rivalry has required IKEA to move beyond basic advantages.

The Porters Gem Theory can clarify the lands for the competitiveness of IKEA. The solitary objective is to put IKEA as the leading source for an array of stylish home and office furnishing items in the New Dehli commanding the most significant market show within the first season. Our online marketing strategy will seek to create customer understanding regarding the products that we offer, develop the customer basic, and work toward building customer commitment and referrals.

Our findings point out that the communication that people will seek to communicate is that people offer the most significant selection of practical and tasteful home and office furnishing items in New Dehli. The first method that people will use to connect this is location. IKEA has chosen an upscale, trendy and posh area which receives a great deal of customer traffic. This produces huge amounts of presence for IKEA. Our other marketing strategies will be:

Creating Understanding and Building Image

Retaining Customers

New Home Engineering Promotion

Strategy # 1

CREATING Recognition AND BUILDING IMAGE - Informing our target market what IKEA offers through effective placement.


Advertisements in leading newspaper publishers.


Sales Promotion

Point-of-Purchase Demonstration of products' assembly

Discount for credit card holders

Public Relationing

Pre-launch press release

Direct Marketing

10, 000 free catalogs

Strategy # 2

NEW HOME Structure PROMOTION - Attaching with the folks mixed up in building process.

Connecting with the house builders

Connecting with prospective home buyers

Strategy # 3

RETAINING CUSTOMERS - Our best sales in the future should come from our dedicated customers.

Benefits for repeat customers

Excellent Customer Service

Follow up contact


- INDIA GOVERNMENT is encouraging more IKEA.

- INDIA GOVERNMENT is rousing with paperwork reforms.

- INDIA Federal is helping to set-up more skilled labors.

- INDIA Federal government offers infrastructures to attract more establishments.

Our findings indicates that various up-scale home furnishing stores in New Dehli reveals that consumer personal preferences are changing in the favor of more practical, stylish and advanced furniture. Generally too it has been observed that the average consumer is becoming more quality-conscious. The marketplace acceptance of our own kind of products that happen to be on top of quality and style is also increasing as is evident from the starting of various designer furniture shops lately. According to many shop owners the size of the marketplace which does not head paying a lot in substitution for quality goods has also increased. The Economic Study of India 2003 indicates that urban housing building activities have risen by 32% over the last 20 years. Our area of interest is likely to take advantage of the construction of these enclosure societies as these cater to the upper school and the furniture needs of this class are sufficiently met by our superior products. Recent newspaper reviews indicate that the number of marriages has noticeably increased lately. This tendency is likely to last as the amount of people above 18 is marvelous. It also spells very good news for our niche market as supplying home furnishing gift items is common at wedding ceremonies. Also, the recently married couples in the family life circuit stage have shown to be big spenders on furniture. The metropolitan consumers also have become more aware about the ergonomics associated with services which presents an opportunity to our company. An important interpersonal change has been the general approval of the Do-It-Yourself strategy in New Dehli. Using the entrance of multi-national restaurants, the self-service concept has become very popular. This is very important for our company as it encourages customers to assemble furniture themselves.


At the finish of explaining the international competitiveness of an IKEA in INDIA I would like to conclude that on Porter's countrywide diamond model talents and weakness are appropriate as I identified them above. As durability this model assists with in advance understanding about the position which may be gained in the Global Competition. This model can be well employed in major geographic parts. The major weakness of Criticism on Porter's national diamonds model resolves around lots of hypotheses that underlie it. The main weakness of the idea is that Porter generalized from the North american case; for developing countries the model may be incorrect.

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