IKEA Phase 1 final
Table Of Content
1- History 2
2- TARGET MARKET ANALYSIS 3
3- Products 5
4- Services 6
5- Market structure 7
6- Position 8
7- Image 8
8- Generic strategies 8
9- Cost leadership 8
10- Differentiation 9
11- Focus 9
12- Growth Strategy 9
13- VERTICAL INTEGRATION 10
14- Market development and expansion 11
15- Market penetration 11
16- Niche Strategy in USA 12
17- Global sourcing decision 12
18- Competitors 13
19- Core Competence 14
20- Challenges & its effect on Ikea 16
21- Solutions 18
22- Recommendations 20
23- References 22
1- History
When Ingvar Kamprad founded IKEA in Sweden in 1943, his vision was to “allow people with limited means to furnish their homes like rich people.” The core of the IKEA strategy is in offering a widerange of products that were simple, well-designed and priced to be accessible to the majority of people.
Over time, IKEA’s “democratic design” principles made it one of the world’s most prominent furniture retailers, but in 1985, when IKEA opened its first store in the United States, replicating the model that had successfully captured consumers’ attentions in Europe, IKEA was met with mixed reviews: Customers found the products unappealing and out-of-touch with the interests of the typical American consumer, and consumers did not immediately grasp the do-it-yourself mentality.2 Despite these initial challenges, IKEA has become a staple in many American households. With roughly $35.1 billion in revenues, IKEA offers over 50,000 SKUs to over 40 countries and manages a global supply chain to rival Wal-Mart.3
IKEA came to dominate the US mass-market furniture industry by successful execution and by understanding and changing the broader ecosystem, By examining the successes and failures of IKEA’s global expansion, focusing primarily on the US market as a lens through which to view the company, this paper aims to understand how IKEA changed and came to dominate the mass-market furniture industry.
We first look at an overview of the
1- History 2
2- TARGET MARKET ANALYSIS 3
3- Products 5
4- Services 6
5- Market structure 7
6- Position 8
7- Image 8
8- Generic strategies 8
9- Cost leadership 8
10- Differentiation 9
11- Focus 9
12- Growth Strategy 9
13- VERTICAL INTEGRATION 10
14- Market development and expansion 11
15- Market penetration 11
16- Niche Strategy in USA 12
17- Global sourcing decision 12
18- Competitors 13
19- Core Competence 14
20- Challenges & its effect on Ikea 16
21- Solutions 18
22- Recommendations 20
23- References 22
1- History
When Ingvar Kamprad founded IKEA in Sweden in 1943, his vision was to “allow people with limited means to furnish their homes like rich people.” The core of the IKEA strategy is in offering a widerange of products that were simple, well-designed and priced to be accessible to the majority of people.
Over time, IKEA’s “democratic design” principles made it one of the world’s most prominent furniture retailers, but in 1985, when IKEA opened its first store in the United States, replicating the model that had successfully captured consumers’ attentions in Europe, IKEA was met with mixed reviews: Customers found the products unappealing and out-of-touch with the interests of the typical American consumer, and consumers did not immediately grasp the do-it-yourself mentality.2 Despite these initial challenges, IKEA has become a staple in many American households. With roughly $35.1 billion in revenues, IKEA offers over 50,000 SKUs to over 40 countries and manages a global supply chain to rival Wal-Mart.3
IKEA came to dominate the US mass-market furniture industry by successful execution and by understanding and changing the broader ecosystem, By examining the successes and failures of IKEA’s global expansion, focusing primarily on the US market as a lens through which to view the company, this paper aims to understand how IKEA changed and came to dominate the mass-market furniture industry.
We first look at an overview of the
References: 1- "IKEA’s Global Marketing Strategy." 123HelpMe.com. 07 Dec 2014 2- Essays, UK. (November 2013). The Strategic Positioning Of Ikea Marketing Essay. Retrieved from http://www.ukessays.com/essays/marketing/the-strategic-positioning-of-ikea-marketing-essay.php?cref=1 3- Porter, Michael E (1979) How Competitive Forces Shape Strategy. Harvard Business Review, March/ April, Volume 57, Issue 2 4- Essays, UK. (November 2013). Analysis Of The Market Position Of Ikea Marketing Essay. Retrieved from http://www.ukessays.com/essays/marketing/analysis-of-the-market-position-of-ikea-marketing-essay.php?cref=1 5- Bartlett, C., Dessain, V. & Sjoman, A. (2006), IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor (B). Harvard Business School Publishing. 6- Ikea. (2010), Multiple Pages [Online]. Available from www.ikea.com 7- Jonsson, P., Rudberg, M. & Holmberg, S. (2008), Global supply chain planning at IKEA. Working Paper. 8- Lief, C. (2008), IKEA: Past, Present and Future. IMD International.