IKEA Case Study Pirsoi Teodora C1 - 1572 Words

IKEA – CASE STUDY Is IKEA’s success sustainable? 1. List IKEA’s external and internal challenges. Looking at IKEA’s challenges, which do you think pose the greatest threats? Why? How would you address the challenges? External challenges Opening new stores to drive future growth Finding new sources of supply to support more store openings Find suppliers to be a strategic fit with its highly efficient operations Given the issue of deforestation and the link to global warming, IKEA would need to take into consideration finding a low-cost material as a replacement for wood. Internal challenges The person responsible for all the strategic decisions made for IKEA and the influence he has on the culture and organization of the company The†¦show more content†¦Kamprad implemented and kept all through the company’s history up to the present moment. 3. Did it surprise you to learn that both a developed country ( the United States) and also emerging economies (i.e. China and Russia) are the fastest growing international markets for IKEA? Does this fact pose any challenges in the way IKEA ought to compete across the globe? Why or why not? Personally I was not surprised to learn that IKEA has the fastest growing international markets both in developed countries such as the United States and emerging economies such as China and Russia. The main reason why it did not was that I know that their products are really affordable, but at the same time of pretty high quality. IKEA tries to have products that are both useful and pleasant, affordable, but still durable. Even if their main target market would be the average or low income consumers, the still have a quality satisfactory enough to reach the expectation of the high income consumers as well. Therefore, it does not really matter the level of general development or the income of the potential customers on the market, they still succeed to convince and prove that their products are reliable at a decent price, that makes it a double benefit for its customers. As regarding the challenges in the way IKEA ought to compete around the globe, I think that they should not be so worried about the other competitors on the market in their market segment.