Ikea Study Case
“IKEA invades America“
Case Study
27.11.2012
Marketing II
Saskia Jaeger, David Varnai, Lukas Razmilić
Table of contents
1 What factors account for the success of IKEA? 4
2 What do you think of the company’s product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? 5
3 Despite the success there are many downsides to shopping at IKEA. What are some of these downsides? IKEA’s 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? 6
4 The fact that IKEA plans to have fifty stores in operation in the USA 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 IKEA’s value proposition to make it even more attractive to American consumers? 7
5 To achieve the kind of growth IKEA is hoping for, should the company change its product strategy? If so, in what way(s)? What about its product range — are 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? 8
6 If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in ten years? 9
7 Industry observers have suggested that IKEA should open up 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
Case Study
27.11.2012
Marketing II
Saskia Jaeger, David Varnai, Lukas Razmilić
Table of contents
1 What factors account for the success of IKEA? 4
2 What do you think of the company’s product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? 5
3 Despite the success there are many downsides to shopping at IKEA. What are some of these downsides? IKEA’s 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? 6
4 The fact that IKEA plans to have fifty stores in operation in the USA 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 IKEA’s value proposition to make it even more attractive to American consumers? 7
5 To achieve the kind of growth IKEA is hoping for, should the company change its product strategy? If so, in what way(s)? What about its product range — are 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? 8
6 If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in ten years? 9
7 Industry observers have suggested that IKEA should open up 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