Ikea Invades America
IKEA 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 developments. The number of stores of IKEA in the United States is 14 at the moment and they aim to have 50 stores by 2013.
SWOT ANALYSIS OF THE COMPANY
Strengths: The way IKEA packages the products makes the cost lower and provides easier transportation for the customers. Design of the products matches the cultural expectations of the customers in Europe. Cares brand equity and it is well known in America, and people are looking forward for the new stores.
Weaknesses: Due to cultural differences the sales of the company are affected. Different cultures have different tastes in furniture which can be seen in the difference between American and Sweden cultures. Materials used to reduce the cost of the products cause durability problems. Product variety is limited.
Opportunities: The price range of the products is convenient for the people who have lower budgets. The food service provided by the store attracts people. Product design can be overviewed according to changing nations.
Threats: There are many furniture companies, which causes competition among them.
STATEMENT OF THE PROBLEMS The problems faced by IKEA can be examined in three parts; problems affecting consumer, market and cultural problems occur due to different tastes. The way IKEA provides service to consumers has both negative and positive effects on the buyers. Positive effecting factors are; whether the product affords the desires of the consumer or not, whether the product fits the location it
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 developments. The number of stores of IKEA in the United States is 14 at the moment and they aim to have 50 stores by 2013.
SWOT ANALYSIS OF THE COMPANY
Strengths: The way IKEA packages the products makes the cost lower and provides easier transportation for the customers. Design of the products matches the cultural expectations of the customers in Europe. Cares brand equity and it is well known in America, and people are looking forward for the new stores.
Weaknesses: Due to cultural differences the sales of the company are affected. Different cultures have different tastes in furniture which can be seen in the difference between American and Sweden cultures. Materials used to reduce the cost of the products cause durability problems. Product variety is limited.
Opportunities: The price range of the products is convenient for the people who have lower budgets. The food service provided by the store attracts people. Product design can be overviewed according to changing nations.
Threats: There are many furniture companies, which causes competition among them.
STATEMENT OF THE PROBLEMS The problems faced by IKEA can be examined in three parts; problems affecting consumer, market and cultural problems occur due to different tastes. The way IKEA provides service to consumers has both negative and positive effects on the buyers. Positive effecting factors are; whether the product affords the desires of the consumer or not, whether the product fits the location it