Founded in 1943 by Ingvar Kamprad, IKEA is one of the largest furniture retail organizations in the world. The privately held company employs over 100,000 employees, offering a wide array of unique, simple and ready-to-assemble furniture. The company targets the working class there are 326 IKEA stores spread over 38 countries and produce over 100,000 products in their stores and online. IKEAs well-known brand name originated a marketing model concept that shows its strengths. However, targeting so many different kinds of customers brings about certain weaknesses and threats such as local competition, increasing the amount of product recalls, barriers to enter the market and the higher requirements of the new markets by increasing its online sales and utilizing renewable sources, IKEA will still have a competitive advantage over its competitors. The company has a constant concept of offering inexpensive furniture. In order to attract more customers and present an ideal home environment. IKEA advises its customers to come prepared and they will supply everything else they need. IKEA heavily supports the concept of self-serve which is an important part of their approach to customer involvement.
IKEA has created a market for creative and innovative designs, high quality, and low affordable prices. IKEA has employed the cost of leadership and product differentiation strategies. IKEA differentiated itself because their products were different when comparing them to conventional products in the market. They defied the market because the style and design were very simple. .
Key Issues.
The key issues involved in this case would be innovation, customer segmentation, cost leadership and strategic growth. Its success in the retail arena also seems to require companies to be innovative, adaptable, entrepreneurial and opportunistic, particularly when they begin to expand beyond their domestic markets (Arnold 2002).
