IKEA Looks to Further Penetrate the U.S. Market

Given the fancy up analysis presented in the case, what be IKEAs key competitive improvements? What strategic focal point should the company take as it looks to merely expand into the U. S. market? * IKEAs down(p) toll structure has been the very centre of attention of its success. Its belittled-cost and high- feature strategy fits with the trus twainrthy state of the economy. Offering convenience factors indoors IKEAs stores would fit well with IKEAs low cost structure. It maintains its low-cost worry model by creating a diverse furniture shopping experience.IKEA supplies customers with entirely thinkable materials needed to complete their shopping when they demean the store (that are, measuring tape, paper, pencils, catalogs, strollers, and shopping bags). Although IKEA is not set up as a traditional furniture store, the company does depart several added amenities. There is no denying that blemish go out is a key enduringness for IKEA. IKEA considers the enviro nmental impact of every whole step in its business processes by making products that are environmentally conscientious and cost-effective. * To further expand into U. S. arket, IKEA must address two key issues. The first is the overwhelming identity operator of U. S. consumers. Further expansion into the U. S. market will require IKEA to adapt its offerings and stores to local tastes. The atomic number 42 key issue is quality. Although American consumers are increasingly value-driven, they also demand quality products. Many Americans view self-assembled furniture as being lower in quality, and confusable to the types of furniture one might subvert at Walmart or Target. 2. What factor is the biggest agent for IKEAs evolution and popularity value or come across?What can IKEA do to hold out growth after it loses some hoard? * There is no denying that brand image is a key strength for IKEA. nevertheless if they have not been in a store, most people around the populace recogn ize the blue and yellow logo as a symbolic facsimile of trendy, modern, and fashionable furniture which have been found on Swedish home-based clean and efficient service. * Diversification can be a good way that IKEA does to sustain growth after it loses some cache. Product conception and market development such as IKEAs expanding goal in U. S. market.It is a risky strategy but with paying attention selection of the right kind of businesses, considerable improvements in profitability can be experienced. To try and maintain growth, IKEA is considering diversification right(prenominal) of the furniture market. 3. What strategic alternatives would you suggest IKEA mesh to further penetrate the U. S. market? * number more services to enhance customers experience, and consume a customer relationship management system to track current customers and propound with them. Keep IKEAs brand image and focus on correct attitude of stores.Expand product lines to flank the cipher line with a higher- expenditured line. Clever publicise and promotion. 4. Speculate on what will overstep at IKEA stores as they are neutered to fit local tastes. Is the companys trade-off of service for low cost sustainable in the long margin? * IKEAs management philosophy Our visual sensation is to create a better quotidian life for the many people. Our business appraisal is to offer a total swerve of well-designed, functional, home furnishing products at prices so low that as many people as possible can afford them. and all its activities is founded on its mission of offering wide variety of functional furniture for the house, of a quality and at a price affordable by a mass of people. This mission shows IKEAs competitive advantage, office strategy and trade mix. Tailoring IKEAs stores and product to local tastes will execute IKEA to change its mission, to lose its competitive advantage and to redesign its positioning strategy and marketing mix.