Ikea Invades America - 1223 Words

1. What factors account for the success of IKEA? Three factors account for IKEA’s success in the furniture retailing industry: First, their Scandinavian designs are simple but unique. In the past, IKEA’s designs were functional at best, ugly at worst (Moon, 2004). The company had gradually but deliberately adopted a more distinct design aesthetic (Moon, 2004). Second, IKEA is cost efficient. As back as 1956, IKEA began testing flat packages. IKEA designs products so that they can be packed flat and then, customers can assemble the furniture, thus reducing costs. It also creates extra storage space and the capability of shipping more items, while labor costs are reduced and transport damages are avoided (Moon, 2004). Third, their†¦show more content†¦Subcategories can be added to the matrix. The company can expand its product lineup to include a greater number of styles and price points, thus providing the company with complete reports to help them gain advantage over their competitors. 6. If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in 10 years? In ten years, their value proposition can encompass more services to buyers after their purchases. They have to keep with new trends in the industry as well as more products for its customers. 7. Some industry observers have suggested IKEA open a number of smaller, satellite stores across the United States in shopping malls, strip malls, etc. offering a limited range of IKEA products. These IKEA â€Å"lite† stores would give the consumers who do not have access the full-size IKEA stores the opportunity to experience the brand. In addition, consumers who live near a full-size IKEA store could use these smaller stores to make minor purchases such as mugs or dishes as opposed to an entire living room. Do you agree with the idea? Why or why not? The idea of opening smaller or satellite stores across the US can help IKEA to reach more customers. Some customers live in areas where the closes IKEA store is miles away, and these smaller stores can be of great convenience to them and more profits for the company. Some items, as the Ticka alarm clock and clothesShow MoreRelatedIkea Invades America2269 Words   |  10 PagesWorks Cited 6 Appendix 1-3 7-9 Introduction Founded in 1943 by a poor Swedish farmer named Ingvar Kamprad, IKEA is now one of the largest furniture retailers in the world. From its inception, Kamprad wanted to create cheap, quality furniture that everyone could afford. That formula led to IKEA’s early success in Sweden and has carried over until today. To its customers, IKEA is not just a store but a way of life, which may be evident through the cult-like following the company has achievedRead MoreIkea Invade America647 Words   |  3 PagesIkea invades America (1) Compare IKEA to a traditional furniture store I would like to compare IKEA and traditional furniture store in terms of the SWOT analysis: Strength: Ikea has established strong branding with wide range of stylish products. It focus on offering low-priced and affordable furniture. The furniture is easy to assemble and ship. It offers one-stop shopping and featured the amenities as playrooms for children and Swedish cafes, bank and enough parking spaces. It creates a friendlyRead MoreIkea Invades America1906 Words   |  8 PagesIKEA INVADES AMERICA INTRODUCTION IKEA is an international company which designs house products and sells them in the form of ready to assemble furniture. It is one of the world’s largest furniture companies. It is founded by17 years old Ingvar Kamprad in Sweden in 1943. The most important fact about the company is the attention to control the cost of the products, which allows them to lower the prices. Even today they are continuing to expand in the world by looking forward to new product developmentsRead MoreIkea Invades America1264 Words   |  6 PagesIKEA is the worlds largest furniture retailer (in 2002), with sales approaching 12 billion dollars. They operate in 22 countries and have 154 full service distribution stores. IKEA is a highly differentiated service and product provider, emphasizing high-quality product at the lowest prices via non-traditional positioning strategies. In order to provide these low costs, the product came with virtually no customer service and ‘put it together and ‘t ransport yourself directions. In addition toRead MoreIkea Invades America1881 Words   |  8 PagesThe founder of IKEA, Ingvar Kamprad registered his firm 1943. In 1958 he opened his very first IKEA store in Älhult, Sweden. From that moment, IKEA have continuously expanded by invaded new countries and opening new stores. Today IKEA is one of the leading home furnishings brands in the world with more than 235 stores in more than 30 countries. From being a one man enterprise IKEA now have astonishing 110,000 co-workers and a turnover of over 20 billion Euros on a worldwide basis (IKEA website 2008)Read MoreThe Emerging Use of Mattresses in History: Cultural Differences in Sleeping Patterns979 Words   |  4 Pagesstraw mats, for example. Some cultures also use hammocks. In Latin America, the Philippines, and Vietnam, some parents sleep with their baby in a hammock next to the bed. Others place their baby in a wicker basket in the bed, between the two parents (McKenna 2012). Even between the relatively similar US and UK, however, there are substantial differences in terms of how beds are measured. When the Scandinavian furniture company IKEA first made inroads into the US market, it was forced to confrontRead MoreIkea Case Analysis1528 Words   |  7 PagesIKEA Case Analysis IKEA has a distinct market segment in the home furnishing arena. It has created a niche market with innovative designs, quality, and low price structure. IKEA has employed the cost leadership and product differentiation strategies through low price structure and innovative designs, respectively. Additionally, the uniqueness of the disposable furniture concept allowed IKEA to capitalize on the first mover advantage (Harrison amp; Enz, 2005). Behavioral Customer SegmentationRead MoreIkea Organizational Development Paper:1877 Words   |  8 PagesOrganizational Development Paper: IKEA * Joe Purdoff CMB 533 Human Resource Strategies June 18, 2012 IKEA is at the top of the world’s leading furniture retailers, and has set new standards for competitiveness in household furnishings. The company has achieved this position by redefining the roles and interactions between the firm and its customers. Founded in 1943 by a poor Swedish farmer named Ingvar Kamprad, IKEA is now one of the largest furniture retailers in the world. FromRead MoreIkea Study Case2928 Words   |  12 Pagesâ€Å"IKEA invades Americaâ€Å" Case Study 27.11.2012 Marketing II Saskia Jaeger, David Varnai, Lukas Razmilić Table of contents 1 What factors account for the success of IKEA? 4 2 What do you think of the company’s product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? 5 3 Despite the success there are many downsides to shopping at IKEA. What are some of these downsides? IKEA’s vision statement (in Figure C of the case) describes how the companyRead MoreInternational Management67196 Words   |  269 PagesLuthans University of Nebraska–Lincoln Jonathan P. Doh Villanova University INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright  © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions  © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database