Ikea Case Study
IKEA was founded in Sweden in 1943 by Ingvar Kamprad. IKEA is a home furnishings retailer unlike any other. It was founded on the basis of low cost and it offers modern and stylish furniture for all types of people at affordable prices. IKEA’s unique way of shopping, store layout, and do-it-yourself approach continues to help maintain their popularity.
1)Given the SWOT analysis presented in the case, what are IKEA’s key competitive advantages? What strategic focus should the company take as it looks to further expand into the U.S. market? Given the SWOT analysis presented in the case, IKEA definitely has some key competitive advantages. All of the strengths mentioned in the case are very beneficial but the strongest I feel are the
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The customers are attracted to IKEA because of both the value and image IKEA portrays. IKEA can do a few things to sustain growth after it loses come cache. First, IKEA can increase their marketing efforts to get more customers in the stores. Social media is a very dominant force in today’s world and IKEA should definitely start focusing on that area. Second, IKEA should continue to be innovative and creative in their products. This is how they became a strong force so they should continue down that road because they have proven facts that it works. Lastly, IKEA should try and delve into new market categories or diversify. I say this is an option because just this week I came across an article in the Wall Street Journal discussing how IKEA’s parent brand, INGKA, is planning to develop a hotel chain.
3) What strategic alternatives would you suggest IKEA employ to further penetrate the U.S. market? There are two main strategic alternatives I would suggest IKEA employ to further penetrate the U.S. market. First, I think it is important to tailor the needs of the U.S. customers in their product developments. The products should match the style of the Americans. Second, I would suggest IKEA update their marketing efforts. I mentioned in my answer to question number two that I feel social media is a huge opportunity to get the IKEA brand and message out to