IKEA FURNITURE MARKET

IKEA Furniture Market in America



IKEA Furniture Market in America

Introduction

IKEA is the leading manufacturing firm, engaged in the manufacturing of furniture. Since its inception, IKEA has maintained a distinctive position among its competitors, thus enjoying an overwhelming competitive advantage. It has always enjoyed a formidable position in this particular sector. Now, as every organisation is planning to expand its operations, the top management at IKEA has realised the necessity and importance of expanding its business in other countries (Proctor, 2000: 36). IKEA has made its mark in the European market, but it has not entered the American market as yet. This paper presents a feasibility report, suggesting possibilities for IKEA to launch a branch office or we can say a franchise in America to cater to the needs of the local consumers. Mergers and acquisitions have taken the business world by storm, but IKEA has successfully managed to survive in these crunch times.

Currently, about 104,000 people are employed. IKEA Group's strength is strong brand reputation and has a strong position in this home market and international market as well. Another strength and key to success of IKEA is offering the consumers lower prices, as well as convenience, choice and good service (Rugman, 2007: 70). IKEA's unique brands have always won customers' attention thus there is no reason why can't the Swedish giant firm make its presence felt in the American market.

Discussion Analysis

Marketing over time has become an integral part of any company's core operations. No matter how distinctive and competent a company's product may be, it will not yield company the desired return, unless the marketers market the products in the right and appropriate manner. Marketing enables the company to pitch the product and the brand to the desired consumer market and let them acknowledge the worth and standard the brand possesses (Mochis, 2007: 10). The aspect of devising the suitable marketing strategies bearing in mind the needs and desires of consumers, and the most appropriate way of successfully implementing them will allow the company to gauge the effectiveness of their marketing endeavours.

There are numerous companies in the world that are famous for their marketing genuineness amongst those companies; Ikea possesses a significant position, which is now amongst the world's largest furniture retailer. Amongst the main strengths of Ikea, are its astute marketing strategies and their successful implementation throughout the world. However, the marketing and business practices have drastically changed from previous to modern times. Now a cognitive mind is coerced to ponder, as to what brought these changes in the world with respect to all the previously mentioned aspects (Michman, 2008: 66). The honest answer one receives is, the modern era is substantially different and developed than all the precedent era; mainly because of the technological advancement this world has achieved. This technical advancement, the progress and development, the world has experienced has undoubtedly positively affected all spheres of the world, but the most influenced sphere is that of business and ...