Ikea Case Study

Question no 1:

What are some of the things IKEA is doing right to reach consumer in different markets? What else could it be doing?

Answer:

IKEA is a global brand with thousands of stores around the world. It is successful because it provides unique value proposition to its customers-sophisticated design at extremely low price. IKEA procures its raw materials from multiple of companies around the world and thus it can save a lot of money and charge low price to the customers. Though IKEA is a Swedish brand, it functions globally and focuses on the local tastes. IKEA gave importance to the local taste in China. They replaced plastic placement with "Year of Rooster" themes which sold to thousands of people quickly. IKEA's regular glasses were too small to be used by the US consumers. That is why they customized the size to fit the needs of US market.

Some of the great things IKEA does to Reach Consumer are:

1. Products available for different section of the society.

2. Products adaptation according to the need of different market.

3. Diversify product line Product Depth.

4. Low priced furniture store provides reassemble furniture and casual furniture.

5. Most of IKEA products are Stylist and costomized.

6. Concept of flat packaging which make it easeir to consumer to transport the furniture.

7. Wide Range of products according to the needs of the customer IKEA earns huge amount of revenue because of its low price strategy from consumer around the globe.

Question no 2:

IKEA has essentially changed the way people shop for furniture. Discuss the pros and Cons of this strategy.

Answer:

PROS:

1. IKEA's ability to adapt its products design strategies according to the market.

2. Family Oriented range offered.

3.IKEA low cost concept keeps it ahead of its competitors.

4. Transportation is easy for the customers because of the easy assembeling.

CONS:

1. Lack of product innovation, very less R & D.

2. The format of display furniture everything is on one floor so...