IKEA Case Study
IKEA Case
Study
BY: MARGARET NICHOLSON
February 8, 2015
Keller Graduate School
Professor: Timothy Schauer
Course: MKTG-522-20775
Marketing Management
Analysis of the
Current Situation
Strengths
Weaknesses
-There are a number of competitors who have low priced furniture to sell to buyers. Some competition like Walmart is cheaper than
IKEA, but furniture packaged is not high quality. -
There are a number of competitors.
-Difficult establishing stores in new cities.
-Stay with today’s trends.
-IKEA’s selling points 1. Low Cost 2.
Attention Catching commercials 3. Excellent
Quality Products.
-Ikea was started in Europe in 1943 and bloomed into a company that has 230 stores in 42 different countries ( Ikea 2015).
Opportunities
Threats
-Social and Ethical Responsibility
-Stores who import from China.
-Self Assembly helps cut operational and transportation cost for both IKEA and their customers. -IKEA needs to update to the latest trends.
-Stores like Walmart and Target
The Target Market
IKEA prides itself on their vision “create a better everyday life for the many people” (IKEA 2015). IKEA supports its vision, by producing and selling a wide range of home furnishings of good quality at low prices. IKEA has been successful in developing cost-effective production methods to help bring good quality products at affordable prices.
They do this by using raw materials and by adapting their products to meet people’s needs. IKEA has been expanding their stores geographically and also their target market.
The company started to design furniture for children. They also have a website that opens up more markets for them.
IKEA’s main target group are middle class people who live in
Europe, Asia, Australia, and the USA.
The Problem
• IKEA is in a highly competitive market with stores that produce very similar goods that IKEA sells. The company’s main competitor is WalMart because their prices are lower than IKEA’s. However, Wal-Mart does not have the style or quality
Study
BY: MARGARET NICHOLSON
February 8, 2015
Keller Graduate School
Professor: Timothy Schauer
Course: MKTG-522-20775
Marketing Management
Analysis of the
Current Situation
Strengths
Weaknesses
-There are a number of competitors who have low priced furniture to sell to buyers. Some competition like Walmart is cheaper than
IKEA, but furniture packaged is not high quality. -
There are a number of competitors.
-Difficult establishing stores in new cities.
-Stay with today’s trends.
-IKEA’s selling points 1. Low Cost 2.
Attention Catching commercials 3. Excellent
Quality Products.
-Ikea was started in Europe in 1943 and bloomed into a company that has 230 stores in 42 different countries ( Ikea 2015).
Opportunities
Threats
-Social and Ethical Responsibility
-Stores who import from China.
-Self Assembly helps cut operational and transportation cost for both IKEA and their customers. -IKEA needs to update to the latest trends.
-Stores like Walmart and Target
The Target Market
IKEA prides itself on their vision “create a better everyday life for the many people” (IKEA 2015). IKEA supports its vision, by producing and selling a wide range of home furnishings of good quality at low prices. IKEA has been successful in developing cost-effective production methods to help bring good quality products at affordable prices.
They do this by using raw materials and by adapting their products to meet people’s needs. IKEA has been expanding their stores geographically and also their target market.
The company started to design furniture for children. They also have a website that opens up more markets for them.
IKEA’s main target group are middle class people who live in
Europe, Asia, Australia, and the USA.
The Problem
• IKEA is in a highly competitive market with stores that produce very similar goods that IKEA sells. The company’s main competitor is WalMart because their prices are lower than IKEA’s. However, Wal-Mart does not have the style or quality
References: IKEA (2015, February 8,). Retrieved from http://www.ikea.com/ms/en_US/this-is-ikea/companyinformation/index.html IKEA’s global marketing strategy (2011). IKEA internationalization. Retrieved on 8th February 2015 from: http://www.123helpme.com/ikeas-global-marketing-view.asp?id=165535 Kotler, Philip, and Gary Armstrong. Principles of Marketing, 15th Edition. Pearson Learning Solutions, 2013. VitalBook file. pg. 1-337 2/8/2015.