Ikea Invades America Questions

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1. What factors account for the success of IKEA?
2. What do you think of the companys product strategy and product range? Do you agree with the matrix approach described in Figure B of the case?
3. Despite its success, there are many downsides to shopping at IKEA. What are some of these downsides? IKEAs Vision Statement (in Figure C of the case) describes how the company seeks to build a partnership with its customers. What do you think of this vision statement?

4. The fact that IKEA hopes to have fifty stores in operation in the Unites States by 2013 is an indication of how optimistic the company is about the viability of its value proposition in this country. Do you think IKEA is being overly optimistic in its growth plans? How would you improve IKEAs value proposition to make it even more attractive to American consumers?

5. To achieve the kind of growth that IKEA is hoping for, should the company change its product strategy? If so, in what way(s)? What about its product rangeare there limitations to the matrix approach? Should the company expand its product lineup to include a greater number of styles and price points? In what other ways should the company consider changing its product lineup?

6. Some industry observers have suggested that IKEA should open a number of smaller, satellite stores across the United States (e.g., in shopping malls, strip malls, etc.). By offering a limited range of IKEA products, these IKEA Lite shops would presumably give consumers who do not otherwise have access to a full-size IKEA the opportunity to experience the brand. In addition, consumers who do live near a full-size IKEA would be able to use these mini-outlets to make minor purchases (e.g., purchase a set of mugs, as opposed to an entire living room set). Do you agree with this idea? Why or why not?

Reminder: If you havent done so already, please take some time to fill out the survey posted in the Materials section. Thanks.
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