Ikea Case Study

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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?

There have been some suggestions about IKEA opening a number of smaller stores across the United States, in shopping malls, strip malls, etc., places that are highly trafficked by potential costumers, considering the full-size stores are usually outside cities and people don’t have full access to them. Therefore this a way for IKEA to be more available to consumers in the US, to those who live far away from Full-Size stores, those who have a busy life and don’t have the time to spend the whole day shopping or those who just want to buy one or two specific things (household items, etc.) thus they are just looking for avoiding the crowds and the sometimes complex process one find in the existing large stores.

Although we acknowledge the fact that smaller stores will mean a reduce number of products available, and this could lead to dissatisfied customers and damage the brand, IKEA has the vantage of its reputation, It is already known as one of the world’s most prominent furniture retailer, hence they already have a strong positioning in the market. This idea is only a strategy to increase the number of shops, looking for smaller, Town-Centre sites and in this way reaching new customers that are not willing to travel to the stores outside cities and including many non-drivers as well.

This idea is with no doubts a way to expand the brand, it will not only catch the attention of new potential costumers, it will...
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