Essay on Ikea's Future Market Strategy

2463 Words Jan 22nd, 2012 10 Pages
IKEA
Analysis report on the marketing strategy in US market and expansion beyond
IKEA
Analysis report on the marketing strategy in US market and expansion beyond

TABLE OF CONTENTS

1. Introduction ………………………………………………………………………………….……. 3 2. Current Market and Future Strategy …………………………………………………… 3 3. Further penetrating the US market? ……………………………….…………………… 5 4. A new opportunity: Mexican market ………………………………………………….. 6 5. Conclusion ………………………………………………………………………………………….. 7 6. References ………………………………………………………………………………………….. 8 7. Appendix …………………………………………………………………………………………….. 9

INTRODUCTION
The purpose of this report is to discuss the IKEA’s current market situation, suggest new market strategy and evaluate
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3. In furniture and furnishing sector in US, 6% of total revenue is earned by online shopping. (Insert reference). There is good opportunity for IKEA to grow their business online and Ikea should look to improve online buying experience.

4. IKEA’s already has alliance with AOL for digital media (Chantal Todé. (2009)) and should make more alliances with other companies. For example: They can alliances for their restaurants, delivery service etc.

FURTHER PENETRATING THE US MARKET?

Coming to the question, if it is a good idea to penetrate to US market, we will examine few parameters. The first parameter is potential market growth- does the home ware market within the US provide IKEA with an opportunity to generate profits? When looking at the home ware’s market segmentation in value, in 2009 the US market held 31.8% of the market, second only to Europe with 34.4%. The US CAGR expected growth in 2014 if of 1.6%, to sum up a total of $97Bn (EuroMonitor-2, (2009)). From those figures we can assume that the US market will continue to generate possibility for profits to the key players in the home Furnishing industry. When examining IKEA’s position and market share, we can see that the firm is an established player in the market, capturing 2.3% of the furniture sector in 2008 (see appendix Fig 3). This market is characterized by its segmentation- 69% of its share was divided by “other” small

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