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Ikea

In: Business and Management

Submitted By sabitaha
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Table of Content

Contents | Page no. | 1. Abstract | 02 | 2. Introduction | 03 | 3. Symptoms | 03 | 4. Indentify the problems | 04 | 5. Generate the alternate solution | 04 | 6. Analyze the alternative | 05 | 7. Recommendation | 05 | 8. Implementation | 06 | 9. Conclusion | 06 |

Abstract

The IKEA Group, one of the world’s top furniture retailers, has emerged as the fastest-growing furniture retailer in the US. To become one of the leading furniture retailers in such huge and promising market, it has set an ambitious goal to have 50 stores around the US by 2013. IKEA has 4 branches in Los Angeles alone. From 1997 to 2001, the revenues of IKEA doubled from $66 million to $1.27 billion in five years. Looking at the growth rate over the past decade, it seems possible for IKEA to reach this goal. However, IKEA faced several challenges: American’s mind-set, competition from established furniture retailer and different customer’s preference. To address to these challenges, IKEA needs to apply market leader strategy expanding total market size, defending and developing its market share to achieve this goal. . Thus, brand awareness gives IKEA a great power in the US market. However, IKEA’s motto is “low price with meaning”. “With meaning” for US market is different from the other markets. If IKEA cannot capture what US customers want, its offerings will become “low price and no meaning”.

Introduction

IKEA, the world’s largest furniture retailer was founded in 1943 by Kamprad. Its first showroom was opened in Almhult and for the first time the customers could see and touch their furnishings before ordering. By 2002, Ikea was the world’s most prominent furniture retailer. Though the company was privately held and did not release profit figures, its 2002 revenues approached $12 billion. IKEA’s product…...

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