1. Looking at IKEA's challenges, which ones do you think pose the greatest threat? Why?
While Ikea is moving from an international strategy to a global-standardization strategy, there is the threat of possible limited resources and the change in consumer taste. Recently there has been an increasing awareness of preserving the forests and a concern for global warming. As a result, Ikea needs to develop an alternative to wood as a source of furniture and goods. The problem is the uncertainty of when that shift will take place. It could be within the next 10 years or maybe the next 100 years. Regardless, Ikea needs to consider these external factors. Currently, they need to focus on how to meet the demands of the customers so they’re able to keep up with competition. From this point the debate could be whether Ikea should look into alternative resources for wood so not only are they able to keep up with the competition, they’re also prepared for future changes. Or, rather put those expenses into finding a new supplier to add onto their current supply to keep up with the expansion.
Ikea alone uses almost 1% of all wood used commercially around the world. The company said it plans on becoming “forest positive” by 2020, meaning that, despite its continuing high demand for timber, it intends its business to have overall positive effect on the world’s forest. What does this mean? The commitment of this approach means it will be growing at least as many trees as it uses to make products by 2020. Ikea also intend to become of the biggest and most certified wood user and recycled wood products. The largest challenge to this strategy is that the company is dependent on this strategy entirely on its relationship with one global certification scheme, Forest Stewardship Council (FSC). Also, many environmental groups are claiming that Ikea is willfully deceiving its customers and hiding behind a “flawed” certification system.

2. How would you address the challenges you identified in Question 1?
As incorporated in my answer 1, the idea of either having a research and development department or investing more into it to find alternatives to wood. Regardless of whether Ikea plans to plant as much trees as cut down by 2020, the population of the world is increasing and more trees are being cut down every year to create clear land for housing. This external factor is outside the control of Ikea so it is ideal for Ikea to be proactive than reactive.

3. Did it surprise you to learn that both a developed country (the United States) and also emerging economies (i.e., China and Russia) are the fastest- growing international markets for IKEA? Does this fact pose any challenges in the way that IKEA ought to compete across the globe? Why or why not?
It did not surprise me to learn that both developed country and emerging economies are the fastest-growing international markets for Ikea. China suffers a high low class population with an emerging increase in the middle-class population. However, Ikea is an integrated strategy where it achieves high quality at an affordable costs and captures the target market of low to middle income families just like it does in America. There are cultural challenges when expanding the empire though. For example, when Ikea entered the US in the 1990’s, the executives were bemused by the number of vases they were selling. Slowly, the Swedish retailer realized that Americans were buying the vases not to put flowers in but to drink from. The European-style glasses Ikea stocked were too small for US tastes. It was a cultural misstep. Also the metric-system is different from the U.S. and everywhere else. Ikea, before entering global markets need to consider cultural differences and seek control where fit and allow customization managed by managers to the culture of the local area when fit.
4. What can IKEA do to continue to drive growth globally?
I think the main question is whether Ikea’s success is sustainable. It definitely has a competitive advantage with no other retailer coming close to comparison in size and the products its offers but is the success thus far sustainable?