Ikea Case Analysis

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Case Study Analysis - IKEA
IKEA possesses numerous strengths that will help the company gain high value proposition around the globe in general and in the United States in particular. IKEA has been well known for its distinctive self-service store, unassembled furniture with flat packages, and featured amenities as playrooms for children and Swedish cafes. Its success in the United States has visibly shown through the double revenues from 1997 to 2001 ($600 million to $1.27 billion) (IKEA Invades America case study). By 2002, the United States was IKEA’s third-largest market, after Germany and United Kingdom, (exhibit 3 - IKEA Invades America case study) with 14 stores established, second largest number of stores worldwide (exhibit 4 - IKEA Invades America case study). IKEA displays itself as a unique IKEA “culture”, in which the minute the customers set their feet in the store, they emerge in the whole new world of furniture shopping with the latest, trendiest interior designs. Everybody could be a interior designer of their own homes for the time they are there, being able to choose from a wide selection of items available for each decorative setting, mix & match themes and color, etc. The store layout is designed in a predetermined path that leads shoppers toward different layouts of the model rooms. IKEA uses price tags with detailed information concerning the product, how to pick them up later at the storage (aisle #, bin #), and color-coordinated cards for design tips throughout the store for customers’ convenience. If customers need to carry on the shopping without their children, they could drop their kids at the childcare facility on the way into the store featuring large climbing structures. If they are hungry, they could stop by the IKEA restaurant with delicious items like smoke salmon or Swedish meatballs. In short, IKEA designs their store to meet every customer’s personal needs. IKEA’s Vision Statement about building a “partnership” with...
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