Categories: Strategy

IKEA Strategic Focus to Expand in US Markets

The United States is an important global market for IKEA expansion. The living standards of US people are high as compared to other countries however; some Americans are cost conscious and looking for low cost products and services.

IKEA has been addressing the needs of young cost conscious segment however; to address the needs of Americans having high living standards and willing to spend more for classic designs, high quality and services.

IKEA has to increase furniture design range by adding new product line which meets the preference of American’s who are willing to pay more to get high quality, classic design and superior services. The execution time of this strategy can be reduced by franchising and local acquisitions. This enables IKEA to understand customer culture and value by hiring local employees.

Americans prefer online shopping rather than visiting stores due to busy schedule. IKEA is lacking in virtual presence as customer can buy limited products form their online store. IKEA need to revamp the online store to showcase and purchasing of all of their products. In this way, American customers will get their furniture at their door step.

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