Marketing Analysis Presentation: IKEA's US Market Expansion Strategy

This presentation analyzes IKEA's strategic approach to entering and expanding within the US market. It begins with an introduction highlighting IKEA's global success and the challenges faced in the US market, particularly due to economic factors and the differences between the traditional US furniture market and IKEA's low-cost business model. The presentation identifies IKEA's key competitive advantages, including a strong brand image, low product costs, creative designs, and a deep understanding of target markets. It then outlines a strategic focus for IKEA, recommending targeting the high-end market and increasing online store presence, as well as hiring local employees to understand the culture. The presentation further suggests strategic options such as improving customer service through online CRM, strategically locating stores near universities, and manufacturing high-end products. The conclusion emphasizes the need for IKEA to adapt its strategy to the US market's volatility and technological advancements, focusing on the high-end market and enhancing customer satisfaction. The presentation is supported by references to academic sources.

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.