IKEA Business Analysis

IKEA provides a range of home furnishing products that are affordable. IKEA was founded in Älmhult, Sweden in 1943. IKEA was created by Ingvar Kamprad, and IKEA got the name from the initials of Ingvar Kamprad and where he was from. Kamprad’s farm was called Elmtaryd which was in Agunnaryd, Sweeden. IKEA was first created as a mostly mail-order sales business. About five years later, IKEA began to sell furniture. IKEA is most known for selling ready-to-assemble furniture. IKEA also sells appliances, small motor vehicles and home accessories. IKEA competes in the furniture and design industry. They are unlike the competitors because IKEA 's products are displayed like rooms and bought in boxes. The competitors have their furniture set out by …show more content…
IKEA is looking to get into the insurance business. They are currently testing this out in some stores as of late 2014. IKEA has also been buying wind farms from Apex Clean Energy. They are working to build a sustainable work place. IKEA also partnered with Marriott to create Moxy hotels. The partnership has been successful because the cost of the rooms are lower and IKEA is getting more brand recognition from those using a Moxy hotel. IKEA has made several other partnerships to get their brand out there better, but IKEA has failed to do one important task. IKEA could expand their online presence by offering their products on Amazon. They could gather more sales by becoming a more known online retailer. IKEA is not everywhere in the United States, so some people do not have access. I personally do not have access to an IKEA unless I want to drive for awhile. IKEA could enter the electronics market by offering televisions and such. They could buy an off brand maker of televisions like oCosmo. To get past failure, they should make limited number of televisions, and give them as a bundle for those who either buy a whole room setup or tv stand from IKEA. Take the reviews from those customers to fill the demands of the customers. An idea would be to color the televisions to match the colors of the tv stands or rooms. This would be different than any of the …show more content…
The top 5 countries are Germany 16%, USA 11%, France 10%, UK 7%, and Italy 7%. IKEA would use a transnational strategy because the pressure to lower costs is high and the pressures for local adoption is also high. Since IKEA sells modern style furniture, different countries have different styles which needs adoption. Germany and the United States have different tastes in furniture and style. Hotel rooms in France are smaller than most of the ones in the United States, so they would need smaller furniture. IKEA also has to keep a low cost to keep it 's corporate strategy. IKEA has been very successful because it has been increasing in sales, market share, and brand recognition. IKEA continues to grow each year by adding more stores. IKEA is now growing and working towards becoming a sustainable business, which will add more potential customers because some customers are more likely to buy from a company who is working towards making the planet better. IKEA was not originally from the United States, so IKEA had to adopt to the culture of Americans. IKEA did not have to adopt to much to meet the needs of American consumers because of the research that is available. Instead, IKEA is looking to enter into India within the next 5-10 years. For cultural difference, IKEA will need to see the different styles of furniture in India. There is also a lack of trust in external organizations. For administration