IKEA Marketing Case Analysis IKEA Case Study

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The rising demand for convenience is also a very strong motivator for customers as is the demand for stylish but sustainable and eco-friendly products as well. All of these elements together work to further strength the company's position in the global do-it-yourself market.

Threats

The greatest threat is from competitors who are also selling do-it-yourself store concepts throughout North America and also working to create highly effective supply chains. There is also the continual competitive threat of changing customer needs, tastes and changing market preferences over the lifecycle of a customers' buying cycles in the areas of furnishings and furniture.

Problem Statement

Modifying a highly efficient business model to take into account the individuality of U.S. customers and also adapt product offerings to local tastes are both critically important problems to IKEA today. Their advertising is very European-centric as well, which needs to be changed to better fit the American market, where their concepts would be considered "edgy" by some.

Strategic Alternatives

The following three strategic alternatives are recommended to IKEA:

1. Create a North American supply chain operation that can scale quickly to support mass customization of consumer-centric goods for that market

2. Scale global supply chain operations with selectively suppliers in the U.S. And use advanced demand management planning concepts to further minimize inventory risk

3. Create regional distribution centers and a localized supply chain in the U.S. To mitigate risk and increase overall market performance

Strategic Recommendation

As IKEA is so heavily centered on its supply chain operations as a core part of its unique value proposition, the company needs to create distribution centers throughout the U.

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S. And also build out its supply chain in North America as well. This will ensure a very high level of responsiveness to customer needs and also drive down costs over time. It needs to in essence create a localized supply chain for North America.

Marketing Implementation

Americans resonate with pride over the unpretentious but hard-working brand winning out over the self-important and arrogant one. As furniture retailing in North America is dominated by large, very expensive brands, IKEA needs to poke fun at the self-importance of their larger competitors and show they are the "everyman" of do-it-yourself furniture. They need to show they understand what the common man needs and move in that direction with their messaging. Part of the messaging will include sustainability and respect for the environment as well. All of these elements need to be brought together into a single, unified messaging platform using online and in print media, especially their catalog. They also need to have their North America site staffed with those form the countries that customers will be buying from too,….....

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