IKEA invades America

Table of Contents

Introduction1

Discussion2

Decision makers2

Problem statement2

Identify alternatives3

Analysis of alternatives4

Action (recommendation)6

Implementation and evaluation7

Generalization7

Conclusion8

Appendix9

References10

IKEA invades America

Introduction

IKEA is a very renowned brand operating globally. Considering the number of stores, IKEA has a much larger market in Europe as compared to North America. However, when it comes to the response of the customers, it is quiet well-revered throughout the world. The main reasons of IKEA's tremendous success worldwide are their unique and inventive products. All the stores of IKEA strive to provide their customers with an exclusive experience. It is designed in a circular way so that they add to the convenience of the customer, allowing them to observe every item on display with ease by moving in one general direction. IKEA stores hold all kinds of furniture in bulk and also offer their customers various accessories.

The unique selling point of IKEA's products and the reason why they have been the world's leading sellers of high-quality furniture is that they are trendy, classy and stylish and durable while also being remarkably cheap. The core target market of IKEA mainly consists of those individuals who are recently starting out and are seeking for latest and sturdy furniture at an affordable price. These normally include college students and single individuals who are moving in their first apartment. Unlike many other organizations, IKEA has been able to experience outstanding development and growth. Moreover, it has been able to maintain outstanding business relationships across the globe. However, for a business that operates globally, numerous challenges come naturally with tremendous success.

Decision Makers

IKEA's CEO is the major decision maker for the company and this means that his approval is mandatory in terms of critical decisions related to operations, marketing and strategy. As a result, all the alternatives that have been mentioned above can only be implemented by IKEA once the CEO has given his approval for the same since he has the final say on whether the changes should be implemented or not. The CEO's decision is influenced by the managers who are running operations in the US. These managers have comprehensive knowledge about their respective departments and domains. This means that they are able to provide the CEO with a holistic picture of the various processes and operations of the business and help him in making the final decision. The given case study mainly revolves around the choices and preferences of an average American consumer and how IKEA should direct its strategies in order to captivate the interest of these customers. The basic step that should be taken by the CEO's and manager's of IKEA is to identify and remove the factors that are creating obstacles for potential American consumers to accept the company's products when it launched its operations in the United States.

Problem Statement

The primary issues encountered by IKEA in the American market were related to its pricing strategy, product quality, standardization of product size and dimensions, and product style. It has also been noticed that the range of furniture offered by IKEA is not at par with ...