Ikea's Future Market Strategy
IKEA
Analysis report on the marketing strategy in US market and expansion beyond
IKEA
Analysis report on the marketing strategy in US market and expansion beyond
TABLE OF CONTENTS
1. Introduction ………………………………………………………………………………….……. 3 2. Current Market and Future Strategy …………………………………………………… 3 3. Further penetrating the US market? ……………………………….…………………… 5 4. A new opportunity: Mexican market ………………………………………………….. 6 5. Conclusion ………………………………………………………………………………………….. 7 6. References ………………………………………………………………………………………….. 8 7. Appendix …………………………………………………………………………………………….. 9
INTRODUCTION
The purpose of this report is to discuss the IKEA’s current market situation, suggest new market strategy and evaluate the option of further penetrating the US market considering the present market conditions. In this report we also provide an alternative market, which can be explored in near future, for the further growth and expansion opportunity to the company. SWOT analysis is taken as the basis given in the case study and compared to the present condition and taste of customers in the US to logically bring out the facts to support the further expansion in the US market. Matching the different methods, marketing and products policies of IKEA to the economic conditions and customer’s buying behaviour Mexico is suggested as the alternative market for the company and rationally discussed bringing and comparing the relative facts.
CURRENT MARKET AND FUTURE STRATEGY
The SWOT analysis tool aids to find the IKEA’s internal strength, weakness and external opportunities and threats specifically keeping in mind the U.S market (See Appendix Fig 1). IKEA’s strength of producing low cost products with right quality grants IKEA an advantage in the recent economic conditions in U.S. As the demand for convenience in US is increasing, the Flat packaging of products and added amenities like in store restaurant, child care services, renting a car for
Analysis report on the marketing strategy in US market and expansion beyond
IKEA
Analysis report on the marketing strategy in US market and expansion beyond
TABLE OF CONTENTS
1. Introduction ………………………………………………………………………………….……. 3 2. Current Market and Future Strategy …………………………………………………… 3 3. Further penetrating the US market? ……………………………….…………………… 5 4. A new opportunity: Mexican market ………………………………………………….. 6 5. Conclusion ………………………………………………………………………………………….. 7 6. References ………………………………………………………………………………………….. 8 7. Appendix …………………………………………………………………………………………….. 9
INTRODUCTION
The purpose of this report is to discuss the IKEA’s current market situation, suggest new market strategy and evaluate the option of further penetrating the US market considering the present market conditions. In this report we also provide an alternative market, which can be explored in near future, for the further growth and expansion opportunity to the company. SWOT analysis is taken as the basis given in the case study and compared to the present condition and taste of customers in the US to logically bring out the facts to support the further expansion in the US market. Matching the different methods, marketing and products policies of IKEA to the economic conditions and customer’s buying behaviour Mexico is suggested as the alternative market for the company and rationally discussed bringing and comparing the relative facts.
CURRENT MARKET AND FUTURE STRATEGY
The SWOT analysis tool aids to find the IKEA’s internal strength, weakness and external opportunities and threats specifically keeping in mind the U.S market (See Appendix Fig 1). IKEA’s strength of producing low cost products with right quality grants IKEA an advantage in the recent economic conditions in U.S. As the demand for convenience in US is increasing, the Flat packaging of products and added amenities like in store restaurant, child care services, renting a car for
References: 4. IKEA’s already has alliance with AOL for digital media (Chantal Todé. (2009)) and should make more alliances with other companies. For example: They can alliances for their restaurants, delivery service etc. 2. CIA. (2012). The World Fact book: Mexico. Available: https://www.cia.gov/library/publications/the-world-factbook/geos/mx.html. Last accessed 27.12.2011. 3. EuroMonitor. (2009). Housewares and home furnishings in Mexico [e-journal]. Available: Global Market Information Database (http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx). Last accessed 27.12.2011. 4. EuroMonitor-2. (2009). Housewares and home furnishings in US [e-journal]. Available: Global Market Information Database (http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx). Last accessed 27.12.2011. 7. Sylvia Wieland Nogaki. (1994). Ikea 's Grand Opening In Renton Is An Event -- Cheering Shoppers Pour Into Furniture Store. Available: http://community.seattletimes.nwsource.com/archive/?date=19941021&slug=1937131. Last accessed 27.12.2011. 8. Theresa Howard. (2004). Ikea builds on furnishings success. Available: http://www.usatoday.com/money/industries/retail/2004-12-28-ikea-usat_x.htm. Last accessed 27.12.2011. Fig 4: Home Furnishing Market Size Comparison (EuroMonitor-2. (2009)).