Issues With IKEA
Issues with IKEA This paper has looked at how the IKEA brand started and moved into the American market. There are a number of factors that were addressed and will be discussed in this analysis. It will also cover an evaluation of an alternative to these problems and how they might have been implemented. In conclusion, it will cover the recommendation of the best course that could have been taken to overcome an obstacle in this process.
Presentation of the Facts IKEA was founded in 1943 when it was introduced to the Swedish market (). The next major milestone was when the IKEA group started selling furniture. The next big point in the company would be the idea of coming into the store and you can see, touch and try out the furniture.
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There were a big disparity between the larger market stores and the discount furniture stores in the states. The market was split into the higher market of the furniture for houses and new home owners and those that targeted the lower price ends of new buyers or college kids needed cheap furniture. Their biggest selling point is to sell for items to last a lifetime so then one big purchase is all that would be needed to keep a company afloat in the short term. The IKEA group entered the US in the mid 80’s with a store in Philadelphia. This was a disastrous start as IKEA did not make the furniture to US measurements. This made it an instant deterrent in the products produced for the US. They quickly changed this after marketing research and a large ad campaign. These ads helped shape the ability for Americans to see furniture as a discard able item and can be replaced more often than thought. The stores were made into a one stop type shop. They would incorporate “hot items” the smaller items that were everyday things needed to keep sales up. This was accomplished by adding other than furniture in the stores to include food and dining areas that were seen in the European stores already. This was personified with the kids’ areas that were built into the front of the stores so that parents could shop at their own leisure without the distraction of the kids in the
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