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Ikea invades america questions. 1. What factors account for the success of IKEA?
2. What do you think of the companys product strategy and product range? ...
Submitted by paperwhore on December 12, 2007
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1. What factors account for the success of IKEA?
2. What do you think of the companys product strategy and product range? Do you agree with the matrix approach
described in Figure B of the case?
3. Despite its success, there are many downsides to shopping at IKEA. What are some of these downsides? IKEAs
Vision Statement (in Figure C of the case) describes how the company seeks to build a partnership with its customers.
What do you think of this vision statement?
4. The fact that IKEA hopes to have fifty stores in operation in the Unites States by 2013 is an indication of how
optimistic the company is about the viability of its value proposition in this country. Do you think IKEA is being overly
optimistic in its growth plans? How would you improve IKEAs value proposition to make it even more attractive to
American consumers?
5. To achieve the kind of growth that IKEA is hoping for, should the company change its product strategy? If so, in what
way(s)? What about its product rangeare there limitations to the matrix approach? Should the company expand its
product lineup to include a greater number of styles and price points? In what other ways should the company consider
changing its product lineup?
6. Some industry observers have suggested that IKEA should open a number of smaller, satellite stores across the
United States (e.g., in shopping malls, strip malls, etc.). By offering a limited range of IKEA products, these IKEA Lite
shops would presumably give consumers who do not otherwise have access to a full-size IKEA the opportunity to
experience the brand. In addition, consumers who do live near a full-size IKEA would be able to use these mini-outlets
to make minor purchases (e.g., purchase a set of mugs, as opposed to an entire living room set). Do you agree with
this idea? Why or why not?
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