Ikea Invades America
IKEA Invades America
IKEA has definitely made great strides since coming to America in 1985. The case study points at many areas where idea has made huge impacts on the American furniture retail industry. Looking at Exhibit 1 you can see steady growth in sales, Exhibit 3 shows the United States as the third largest buyer of IKEA’s goods, Exhibit 4 shows the Unites States as having the second most number of IKEA outlets in the world and Exhibit 8 shows them as being 14 in sales in America. Looking around at my friends places there is definitely tons of things bought at IKEA. While all these statistics show a very successful movement into the United States for IKEA I feel that there could be some obstacles IKEA could encounter in the future. As it said in the case study generally IKEA’s products don’t last more than a couple of years and that normally don’t have the endurance to survive a move to a new apartment. With how American’s historically purchase furniture, “change their spouse as often as their dining room table, about 1.5 times in a lifetime.” (Moon, 2004), this would seem at odds with the type of product that IKEA offers. The idea that you have to assemble the furniture yourself is something that would seem to turn a large percentage of Americans away from buying an IKEA product. I personally have found some of the things I have bought from IKEA to be very challenging to put together. Another aspect of IKEA is their lack of product depth; it seems that a lack of selection would hurt IKEA in the American market. Outside of these differences in what IKEA has and American tastes there is a lot that IKEA has done very well with in America. IKEA seems to have established itself as the low price leader in the minds of most consumers. As we find ourselves in a time of economic downturn and everybody seems to be trying to save a little here and there that is huge for a retailer. The childcare aspect of the retail outlets is a huge plus to get families to
IKEA has definitely made great strides since coming to America in 1985. The case study points at many areas where idea has made huge impacts on the American furniture retail industry. Looking at Exhibit 1 you can see steady growth in sales, Exhibit 3 shows the United States as the third largest buyer of IKEA’s goods, Exhibit 4 shows the Unites States as having the second most number of IKEA outlets in the world and Exhibit 8 shows them as being 14 in sales in America. Looking around at my friends places there is definitely tons of things bought at IKEA. While all these statistics show a very successful movement into the United States for IKEA I feel that there could be some obstacles IKEA could encounter in the future. As it said in the case study generally IKEA’s products don’t last more than a couple of years and that normally don’t have the endurance to survive a move to a new apartment. With how American’s historically purchase furniture, “change their spouse as often as their dining room table, about 1.5 times in a lifetime.” (Moon, 2004), this would seem at odds with the type of product that IKEA offers. The idea that you have to assemble the furniture yourself is something that would seem to turn a large percentage of Americans away from buying an IKEA product. I personally have found some of the things I have bought from IKEA to be very challenging to put together. Another aspect of IKEA is their lack of product depth; it seems that a lack of selection would hurt IKEA in the American market. Outside of these differences in what IKEA has and American tastes there is a lot that IKEA has done very well with in America. IKEA seems to have established itself as the low price leader in the minds of most consumers. As we find ourselves in a time of economic downturn and everybody seems to be trying to save a little here and there that is huge for a retailer. The childcare aspect of the retail outlets is a huge plus to get families to