Only available on StudyMode
  • Download(s) : 434
  • Published : January 6, 2013
Open Document
Text Preview

1. Situation Analysis 1.1) Founded in 1943 by Ingvar Kamprad in Scandinavia, IKEA is the world’s top furniture retailer with sales approaching $12 billion. 1.2) IKEA operates at 154 stores worldwide covering 22 countries and serving more than 286 customers every year. 1.3) Expanded business into USA with 14 stores at present and with the scope and hope of exploring the American market even further. 1.4) IKEA follows unique strategies that have been the pillars of success to the business. The critical strategies include self-service at all their stores, playrooms for children and Swedish cafes. 1.5) The additional amenities provided at IKEA create a stress free shopping atmosphere for the customers wanting them to visit more often. 1.6) IKEA promises cheaper products with the prerequisite of customer’s involvement in assembling the flat-packed furniture by themselves. 1.7) This unique furniture has been accepted and adopted by all their customers and the retaining of customers has been tremendous along with growth in new customers. 1.8) IKEA has also found certain level of agreeability among the new American customers by campaigning for accepting change. 1.9) The product/price matrix followed by the managers at IKEA holds an edge for cost reduction and effective usage of materials while meeting customer requirements efficiently. 1.10)The supplier relationship at IKEA was a noted factor that aided the business to achieve its success keeping in line with its policies of cheap, good quality, self-served and flat-packed product delivery.

2. Statement of Objectives
2.1 Manufacturing affordable world-class furniture products – Producing beautiful, durable furniture for a wide customer base which has different tastes and purchasing power. 2.2 To have 50 stores in operation in United States by 2013. As of now IKEA has 37 stores in USA, next to 44 in...
tracking img