Ikea Case

IKEA is the world?s largest furniture retailer with sales approaching $12 billion with 154 stores in 22 countries. IKEA is a very unusual furniture retailer given the large physical size of the stores, the self-service features including self-assembly of furniture, limited product and style selection, but with customer amenities such as a playroom for children and a restaurant. Despite limitations, IKEA has been very successful and plans to open more store in the United States.

In answering the questions for this case, DO NOT do any research on the company and its progress since the case was written. You must only use the information presented in the case. Adding outside information beyond what is in the case will reduce your grade!

The questions are the following:

1. IKEA plans to grow in the United States by 50 stores in operation by 2013 which 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 IKEA?s value proposition to make it even more attractive to Americans?

2. To achieve the kind of growth IKEA is hoping for, should the company change its product strategy? If so, in what way (s)? What about its product range–are 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 change its product lineup?

File: Case_Study_Rubric-rev_9-19-11.docx – please follow specific instructions on this file.

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