IKEA's Entry into the US Market - Strategic Focus and Competitive Advantages

This presentation discusses IKEA's entry into the US market, its key competitive advantages, and strategic focus. It also provides recommendations and steps for IKEA to penetrate the US market further. The challenges and opportunities in the US market are analyzed, and the presentation concludes with suggestions for success.

IKEA’S ENTRY INTO THE US
MARKET
PRESENTATION

INTRODUCTION
• IKEA is a popular brand around the world due to its quality product and
service delivery in its furniture and home furnishings at an affordable
price. The firm has been able to penetrate many markets including
Europe and dominate the market share. This success can be traced back
to the strategy of operational excellence that has been steering the firm
towards its goals and objectives.
• However, it planned expansion into the US is facing a few stumbling
blocks due to the weakening Us economy and the inconsistency
between the traditional U.S furniture market and IKEA’s low-cost
operating philosophy were a recommendation will be given to counter
this in order to succeed further in the US market .

IKEA’S KEY COMPETITIVE ADVANTAGES
• IKEA has a strong brand image that is widely known around the world
• Cost of products are low regardless of the high quality reflecting low and
affordable prices on the products
• Creativity in the designs of their products that depicts their uniqueness in
products service delivery (Chen, 2017).
• In-depth understanding of the target markets

IKEA’S WOULD BE STRATEGIC FOCUS IN
THE US MARKET
• IKEA should focus on targeting the high-end market as there is a
significantly large number of potential consumers who are ready to
pay market for high-end quality services.
• IKEA should also focus on the online store segment as not many
Americans like visiting the stores.
• Increased focus on hiring local employees in order to understand the
culture and adapt to the volatility of the business environment.

STRATEGIC OPTIONS OR STEPS FOR IKEA
TO PENETRATE THE US MARKET FURTHER
• Increased quality of customers service through targeting the online
segment and developing CRM for consumer record keeping which
will increase consumer engagement (West,Ford and Ibrahim,2015).
• Strategic location establishment of stores such as near universities
which would increase the quality and effectiveness of the distribution
channels.
• Manufacture of high-end products for the high-end market in the
country.

conclusion
• IKEA strategic focus should shift according to the recommendations
given in the presentation as the US market is large and volatile as well
with an increase in the development and adoption of technology.
Moreover, it should target the high-end market and provide consumer
satisfaction with increased convivence on acquiring their goods.

REFERECNES
• Hinterhuber, A., & Liozu, S. M. (2017). Is innovation in pricing your
next source of competitive advantage? 1. In Innovation in Pricing (pp.
11-27). Routledge.
• West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic marketing:
creating competitive advantage. 11(12), 38 Oxford University Press,
USA.
• Chen, L. R. (2017). An Analysis of Business Strategies and
Managements Which Cause Company's Success or Challenges in the
International Market: (pp. 1-27). Routledge.A Case Study in IKEA
Company.