16. Case Study Questions
What are some of the things IKEA is doing well to reach
consumers in different markets? What else could it be
doing?
IKEA’s Approach
•Low Price – Reduced risk from
competitors
• Low operational costs
•Adapting cultural differences
•Promotional Strategies
•Customer centric approach
•Huge number of suppliers
•Advertising – Targeting core
consumers
•Variation in product line
What Else Can IKEA Do?
• Expanding its sales with local
dealers and small retail shops to
target buyers who need only a
single product.
• Introduction of small stores in
close proximity to the cities
• Expanding its product line to
crockery and interior designing
• Marketing through public
relations.
17. Case Study Questions
IKEA has essentially changed the way people shop for
furniture. Discuss the pros and cons of this strategy,
especially as the company plans to continue to expand
in places like Asia and India.
Pro’s
• Competitive Prices
• Brand Image
• Product Differentiation
• Cultural Adaption
• High demand for sustainable
products
Con’s
• Store Locations
• Customer Perception for low price
products to be of lower quality
• DIY modal can be an advantage for
competitors for producing the same
product at even more cheaper price.