Share
Explore BrainMass

IKEA's strategic moves

How has the strategic posture of IKEA changed as a result of its experiences in the United States? Why did it change its strategy? How would you characterize the strategy of IKEA today?

Solution Preview

IKEA

How has the strategic posture of IKEA changed as a result of its experiences in the United States? Why did it change its strategy? How would you characterize the strategy of IKEA today?

The strategic posture of IKEA has changed substantially as a result of its experiences in the United States. In United States, IKEA faced several problems related to the positioning of IKEA stores. Queues are not liked in the USA and so IKEA was compelled to improve its customer service after its experience in the United States. Further, the strategy of IKEA selling its global designs in the United States was not acceptable. This forced IKEA to modify some of its furniture lines to suit the American tastes. In addition, the fact that IKEA was a Scandinavian brand did not go well with the American customers so this fact was played down with. IKEA played down its Scandinavian brand was played down and it was stressed that IKEA was a global brand. IKEA stores were traditionally placed in areas that were away from urban centers. In the US market this meant away from potential customers. In the US, IKEA had to locate its stores close to its target customers namely the urban areas and close to universities. Most importantly, in the US market IKEA felt the need to introduce better quality furniture that would fetch higher prices and higher profits. In the US market, IKEA felt a need promote furniture as a means to make a fashion statement. As a result of experiences in the USA, IKEA was compelled to ...

Solution Summary

This solution gives you a detailed discussion on IKEA's strategic moves in approximately 700 words with 5 references.

$2.19