Ikea 's Key Competitive Advantages

1015 Words5 Pages
Jones International University MBA 505- Assignment 4.2 IKEA Nancy Saulsberry a. Given the SWOT analysis presented in the case, what are IKEA 's key competitive advantages? What strategic focus should the company take as it looks to further expand into the U.S. market? IKEA’s low-cost structure is the very essence of their success. It keeps the company profitable while other competitors struggle to survive in the market and the weakened economy. IKEA has continued to see positive revenue growth. Their other competitive advantage is treating the environment with care and concern. They are rated in the top 100 companies to work for by Fortune magazine and by offering a fun work environment for employees to maintain…show more content…
The growth needs to be steady and cautious as the economy continues to be weak. The economy will drive the growth or the decline of the expansion of the IKEA branding in the United States. They are low cost and high quality which positions them to continue to profit and appeal to the American families and generation X and Y. b. What factor is the biggest reason for IKEA 's growth and popularity: product value, service value, or branded image? Discuss the reasons for your answers. IKEA is popular in a segment of the population where consumers are trying to safe money, safe the environment or simply time. In this I believe that the popularity and product value are the main reason for their success and ability to sustain in the current economy. “As many consumers look for ways to cut personal spending, IKEA is well positioned to be a logical choice for home furnishings for the cost conscious customer” (Ferrell, Hartline, P.499, 2014). I believe they have met a niche market segment that has the need to both safe time and money and a consumer group that needs quality products at affordable prices. They are also popular due to the design of their stores, childcare and the convenience of shopping in an environment that you are not being harassed by sales personnel trying to earn commissions. The other key thing I feel is a
Open Document