Founded in 1943, IKEA company specializes in producing ready-to-assemble furniture and home products for designing the interior. The main strength of the company’s strategies lies in a one-stop shopping for customers. It means that customers will not have to attend several shops to make the right choice.
So, the role of the sale representatives is to convince them to buy the product at one store. In addition, IKEA tries to respond to daily needs of their consumers by displaying “lifestyle” habits through furniture that is designed specifically for single people, couples, or young families.
The company focuses on the customers who are not interested in the furniture bought for a lifetime, but in the furniture that is suitable for them at the current moment. Due the fact that IKEA manufacturers offer home decorative and furniture market, the size and breadth of the proposed products is limited.
Currently, the company needs to make decision concerning the place and strategies to contribute to its revenues and businesses. In order to make a wise decision, the company should face the issue of cultural diversity because it plans to enter the international market.
On the one hand, IKEA manufacturers should find additional resources for expanding markets. On the other hand, it is possible to reduce the cost by developing online sales for customers all over the world. This alternative decision is much more beneficial for the company. However, the history of the company’s development proves that traditional sale methods have been successful. There is no need to introduce any advancement.
Nevertheless, while choosing a narrow-focused policy, the company might have difficulties in adapting to a competitive environment. Although IKEA products have a unique concept, other related producers can offer much more beneficial concepts that can take advantage of the home decorative market. In a rapidly developing market, consumers’ needs are constantly changing and, therefore, the company should keep track of even slightest shifts.
At the current moment, the company should not stop focusing on one marketing strategy and target audience. Searching for new markets is necessary to sustain a competitive advantage. A multi-dimensional approach is the best way to stay afloat and overcome other related businesses.
Like any other retail business, IKEA is likely to face day-to-day competition on the part of other furniture producers. In a highly competitive world, the main weakness of the company’s strategy lies in a narrow-focused concept and approach to consumer needs. This is of particular concern to self-assembled furniture that cannot always be popular among customers who might want to buy assembled items. In addition, the company should also make shift in the customer base and make the products of higher quality.
In order to expand its market, the company can enter the markets in the developing world because this sector has the customer base that suits the marketing concept of the IKEA producers. In particular, they can sell cheap self-assembled furniture for customers. Apart from the business in the developing worlds, the IKEA producers can also organize supply chain venue in the developed world to advertise their products at a global level.
In particular, because the environmental issues are on the global agenda, the company should also employ these approaches to expand the markets in the developed economies. Hence, the main vulnerability of the company lies in absence of long-term strategies that can predict possible risks.