Case Study Ikea Essay

1934 Words Oct 24th, 2011 8 Pages
CASE STUDY

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International Strategic Marketing Management

Success Factors of IKEA
IKEA is one of the most successful furniture retailer’s worldwide. The factors that contributed to this success and distinguished IKEA from its competitors will be monitored in the following analysis.

First, IKEA has found “niche” to serve. The fact that they are producing “Scandinavian style” products makes them unique. Their idea of offering a very broad range of products, with limited style variations, the bold colors and the typical Scandinavian names, has created a very strong brand image and also a high recognition value of its products. Also, their slogan “Design with meaning” distuingishes them from their competitors. IKEA offers
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Companies might be able to copy some parts of their strategy, however for IKEA it is “the whole package” that made their success possible. Therefore, you would require IKEA’s entire strategy, since all the factors combined might work like the famous 2+2=5 effect. Some of the factors used seperately might work in some way, but never as strong as all of them put together.

Downsides
However, there is also another side of the coin.
Firstly, IKEA’s idea to use expensive, high-quality materials on the “outside” of their products, but inexpensive materials on the inside, may help to reduce costs; however some clients might not be happy with this “all show and no substance”-strategy.
Secondly, IKEA’s products might well be cheap; however they are not built to last. Hence, the furniture might not well survive relocations, and sometimes falls apart without extraneous cause as time goes by.
Thirdly, some people might be deterred by the fact that they have to build up their furniture themselves. Some might try it once for the sake of cost reduction, however never again since it might sometimes result in heavy arguments and strange looking furniture with left over nails.
Furthermore, the fact that IKEA constantly redesigns its products is not only helpful since it sometimes even complicates assembly of products for the costumer.
Another negative aspect might be the fact, that even though you have the opportunity to get assisstance at IKEA, the ratio

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