Ikea Case Study
IKEA U.S. Penetration
IKEA by American standards is a very unique store, and it is known around the world for its stylish, quality, and low-cost furniture and home furnishings. Based in Sweden, IKEA's stores have a strategy of operational excellence in productions, supply chain operations and marketing. IKEA wants to penetrate the US market but the US market is a different market and IKEA would have to adapt to penetrate such a market. We will examine IKEA's competitive advantages and look how it should go about penetrating the US market. We will look at strategic alternatives and we will look at possible outcomes for the penetration of the US market.
Competitive advantages are based on one of three strategies, operational excellence, product leadership, and customer intimacy (Ferrell & Hartline, 2011).. IKEA provides furniture which is stylish, functional and inexpensive to customers. IKEA offers services like in-store childe-care, play areas, restaurants, and longer store hours. The unique IKEA experience provides customers pencils, paper, tape measurers, guides catalogs, strollers as well as shopping bags. This is different than many other furniture stores, the do-it-yourself mentality is a competitive advantage because it offers the customer an experience, and it has the potential to give the customer a feeling of accomplishment. Customers can schedule consultations with professional designers to aid them with redesigning homes and rooms. IKEA offers an environment that is fun, unique and it offers an experience that US consumers are not accustomed to which has huge potential.
Establishing a strategic focus is based on developing an overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy (Ferrell & Hartline, 2011). IKEA should have an aggressive strategic focus. IKEA can develop marketing strategies to aggressively take on multiple opportunities. With this aggressive approach, IKEA could
IKEA by American standards is a very unique store, and it is known around the world for its stylish, quality, and low-cost furniture and home furnishings. Based in Sweden, IKEA's stores have a strategy of operational excellence in productions, supply chain operations and marketing. IKEA wants to penetrate the US market but the US market is a different market and IKEA would have to adapt to penetrate such a market. We will examine IKEA's competitive advantages and look how it should go about penetrating the US market. We will look at strategic alternatives and we will look at possible outcomes for the penetration of the US market.
Competitive advantages are based on one of three strategies, operational excellence, product leadership, and customer intimacy (Ferrell & Hartline, 2011).. IKEA provides furniture which is stylish, functional and inexpensive to customers. IKEA offers services like in-store childe-care, play areas, restaurants, and longer store hours. The unique IKEA experience provides customers pencils, paper, tape measurers, guides catalogs, strollers as well as shopping bags. This is different than many other furniture stores, the do-it-yourself mentality is a competitive advantage because it offers the customer an experience, and it has the potential to give the customer a feeling of accomplishment. Customers can schedule consultations with professional designers to aid them with redesigning homes and rooms. IKEA offers an environment that is fun, unique and it offers an experience that US consumers are not accustomed to which has huge potential.
Establishing a strategic focus is based on developing an overall concept or model that guides the firm as it weaves various marketing elements together into a coherent strategy (Ferrell & Hartline, 2011). IKEA should have an aggressive strategic focus. IKEA can develop marketing strategies to aggressively take on multiple opportunities. With this aggressive approach, IKEA could