Ikea Invades America

Topics: Marketing, Price, Strategic management Pages: 2 (649 words) Published: May 6, 2013
Ikea invades America
(1) Compare IKEA to a traditional furniture store
I would like to compare IKEA and traditional furniture store in terms of the SWOT analysis: Strength:
Ikea has established strong branding with wide range of stylish products. It focus on offering low-priced and affordable furniture. The furniture is easy to assemble and ship. It offers one-stop shopping and featured the amenities as playrooms for children and Swedish cafes, bank and enough parking spaces. It creates a friendly atmosphere and services to shop and design the store layout for a nice journey of shopping. It has strong global sourcing capabilities. Weakness:

All of its furniture came unassembled and may be unappealing to certain group of consumers, it has relatively few shops in each city. The store layout is big and will be difficult to locate a particular item. The Swedish design does not look appealing to American customers in the beginning. The furniture are not built to last a life time and not durable. Opportunities:

IKEA educate the US customer through advertising, like create the feeling of “it’s just furniture, change it”. As compared with traditional furniture, it has flexibility to create some high end label. The Traditional furniture have Hugh inventories, while IKEA have strong global procurement and can expand into other location in the world. Their stores are large as compared with traditional furniture, they have flexibility to create may stores with smaller size. Threats:

Even though IKEA emphasis on low price, however they still have threat with the discount retailer like Wal-Mart, Home Depot and Costco. In terms of quality, the high end traditional furniture shop emphasis the durability and longevity product. The luxurious store designed the images of affluence, prosperity and comfort. They also provide product measurement, selection and interior design services for consumers. The traditional furniture store also offer free of charge delivery services,...
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