IKEA's Product Strategies and Product Range
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Please assist with short answer responses to the questions.
o What do you think of Ikeas product strategy and product range?
o IKEA's plan to have 50 stores in operation in the United States by 2013 is an indicator of the company's optimism about the viability of its value proposition in this country. Do you think they are being overly optimistic?
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The expert examines IKEA's product strategies and product ranges are examined.
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Ikea's main strengths are a strong international brand recognition built upon a unique philosophy and low product prices, combined with solid sales performance since 1997. The company also maintains total control of its design, pricing and supply of product ranges globally, and thus has a product portfolio that caters for most consumer lifestyles and budgets. The firm's main weakness is the fact that it is very much reliant on Europe, with 82% of stores located in this region, and it has encountered difficulty in meeting customer expectations of service as well as price, especially so in the UK where large queues at the tills at weekends are a common feature.
However, Ikea is countering its main weakness with its key opportunity, which is expansion into emerging markets in Asia and Eastern Europe. The development of premium lines, whether within existing stores or through new high street fascias complementing the out-of-town stores, and an increase of sales via the development of e-commerce sites in each country, are both improving customer service, and reducing the volume demand on existing stores. Unfortunately, these extra developments are driving the threat of a ...
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