Ikea Invades America

1223 WordsMay 5, 20135 Pages
1. What factors account for the success of IKEA? Three factors account for IKEA’s success in the furniture retailing industry: First, their Scandinavian designs are simple but unique. In the past, IKEA’s designs were functional at best, ugly at worst (Moon, 2004). The company had gradually but deliberately adopted a more distinct design aesthetic (Moon, 2004). Second, IKEA is cost efficient. As back as 1956, IKEA began testing flat packages. IKEA designs products so that they can be packed flat and then, customers can assemble the furniture, thus reducing costs. It also creates extra storage space and the capability of shipping more items, while labor costs are reduced and transport damages are avoided (Moon, 2004). Third, their…show more content…
Subcategories can be added to the matrix. The company can expand its product lineup to include a greater number of styles and price points, thus providing the company with complete reports to help them gain advantage over their competitors. 6. If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in 10 years? In ten years, their value proposition can encompass more services to buyers after their purchases. They have to keep with new trends in the industry as well as more products for its customers. 7. Some industry observers have suggested IKEA open a number of smaller, satellite stores across the United States in shopping malls, strip malls, etc. offering a limited range of IKEA products. These IKEA “lite” stores would give the consumers who do not have access the full-size IKEA stores the opportunity to experience the brand. In addition, consumers who live near a full-size IKEA store could use these smaller stores to make minor purchases such as mugs or dishes as opposed to an entire living room. Do you agree with the idea? Why or why not? The idea of opening smaller or satellite stores across the US can help IKEA to reach more customers. Some customers live in areas where the closes IKEA store is miles away, and these smaller stores can be of great convenience to them and more profits for the company. Some items, as the Ticka alarm clock and clothes

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