IKEA: INFLUENCING GROWTH AND PERFORMANCE Challenges faced from

IKEA: INFLUENCING
GROWTH AND
PERFORMANCE
Challenges faced from ecommerce
brands

Business issue faced by
IKEA customers are not happy anymore to
drive out to their out of the town
stores for buying flat pack furniture
 This is why it has been experiencing a
drop in their sales.
 IKEA will be facing significant
competition from Amazon and other
popular online retail market chains
(Arestav and Åström 2018).
 The company has planned to launch a
new E-Commerce application for this
purpose which will be incorporating
elements like place, augmented reality
function and 3D visualisation of
furniture in various home settings (Lin
et al. 2017).

Recommendation and conclusion
 In order to come in the same line of
competition, the organisations have
to create a strong brand presence
 They have to develop an online
strategy that would allow the
customers to assemble their
products over the virtual projection.
 This will create value for their
customers as this innovative service
quality is not offered by any other
market competitors.
 The second recommended strategy
is to invest in content marketing.
 They need to incorporate visual
content marketing over Facebook,
YouTube, and SnapChat and other
similar online channels that
promote visual content.

 Arestav, A. and Åström, S., 2018. Bridging the
digital and physical worlds: The deployment of
augmented reality in a retail setting–a case
study on IKEA.
 Fredman, M. and Nilsson, S., 2015. The preferred
Complex Purchase Process in-store–A case study
on IKEA.
 Lin, P., Kong, X., Li, M., Chen, J. and Huang, G.Q.,
2017, August. IoT-enabled manufacturing
synchronization for ecommerce. In 2017 13th
IEEE Conference on Automation Science and
Engineering (CASE) (pp. 401-405). IEEE.