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Ikea Introduction

In: Business and Management

Submitted By vishu123
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IKEA, founded in 1943, is a world famous home furniture company whose vision is “To provide better life for everyone”. The brand provides modern and fashionable low cost furniture for over 38 countries with 301 stores. It is the largest furniture retail chain in the world and boasts a range of 12000 products, including home furniture and accessories. What’s more, it’s concern for people and environment lead to excellent use of raw material and energy, which result in their green targets and the overall environment. We are going to analyse the difficulties in expansion in the U.S. market and use a SWOT analysis to assess the circumstances that affect the same. In addition, we would give our proposed strategy and the three-year plan both in U.S and Indian market.
IKEA’s expansion plan in U.S, faced a lot of problems. Firstly, the economic recession had a deep impact on the home furniture industry in America. For example, the home furnishings sector decline strongly in 2008 by -7.9% to 94.58 billion dollars. Secondly, the demand for customization and convenience is strong in U.S. Because unlike people in other countries, the U.S. people prefer to store most of their clothes folded while Italians like to hang. They were buying vases to drink because of the too small glasses. In short, they want more comfortable sofas, higher-quality textiles, bigger glasses and more spacious entertainment units. And the do-it-yourself furniture takes time to assemble, which leads to inconveniences. Along with that, availability of net promotion and TV advertising would be another problem. Considering the popularity of internet and TV, it is crucial for IKEA to put more effort on that. In addition, American people regard the low price product as low quality to some extent, which will affect the expansion of IKEA products, they pursuit of high quality.
So, the economic...

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