Strategic Management and Ikea

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IKEA assignment

1. Given the SWOT analysis presented in the case, what are IKEA’s key competitive advantages? What strategic focus should the company take as it looks to further expand into the U.S. market? - I think that the Ikea’s key competitive advantages are, their lower cost products, everyone is looking for a good deal and if they are able to buy a chair for $50 instead of $100 and assemble is easy I think people will buy the $50 chair. Also another advantage is the customers in store experience, I do not know of many stores, that offer in store child care and the way they design the store so that it is in easy to find something.   Now that everyone is on a time restraint and people want to get in and out of the store fairly quickly having the store arranged in circle design helps this. I think what Ikea needs to focus on is getting there web site running better, so people can order products online and do not have to go into the stores.   Now a day in the United States people look for convenience and ordering online is one convenience that defiantly draws customers.   So Ikea needs to get a team together to work on getting their web site up and running for ordering products on line I think this will help them to expand into the US.

2. What factor is the biggest reason for IKEA’s growth and popularity: value or image? What can IKEA do to sustain growth after it loses some cache ́? * The biggest reason for Ikeas growth and popularity is because of the product value; their products come completely unassembled and are assembled by the consumer. This saves the company transportation costs, warehousing costs and space on the store floor, which makes their products more profitable.   In addition they use quality hardware, they test their construction, use hardwoods where it is necessary for durability and they design furniture that is functional, with a simple design.

After Ikea loses some cache’ they would need to come up with a...
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