Keith A. Burke
Subject of the Case: IKEA, a dominant furniture retailer has to translate a few large weaknesses
(positioning, weak online sales, etc.) in the U.S market into a great opportunities.
Define the Problem:
Adapting to an ever-aging U.S market where the only thing constant, is change. IKEA must
develop ways to change and position themselves in a way that they are ahead of “the power-
curve”. With companies that have many more locations and convenient “one-stop-shopping”
such as Target and Walmart; IKEA must develop a competitive market advantage (that spans
beyond simply cost and “modern” product). Furthermore, IKEA must overcome the stigma of
being a “do-it-yourself” retailer in order to compete with companies with whom have reputations
and a long history of success such as Home Depot.
Background of the Situation: IKEA has multiple strengths including: A modern image.
A green image.
A highly efficient operation that is 51 percent self-sufficient. A 7 percent annual growth rate
An “anti-bureaucratic image that is promulgated by upper management working in “hands on” jobs (cashiers, loaders, etc.) Ahead of the game with a daycare and restaurants to keep customers in the store longer
IKEA also has several weaknesses:
Marketing in primary countries that is not conducive to the U.S’s “conservative ways”. Average U.S consumer not being the best target for the “do-it-yourself” approach. Limited custom-ability (many U.S consumers like options such as color) IKEA’s set in their ways as far as how they market (word of mouth) IKEA’s sub-par website forces consumers to shop at the nearest location. Not a well trusted name for products such as mattresses
Although there are many elderly individuals who do not like the DIY approach there are a vast number of young adults, who...
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