5SWOT Analysis Opportunities Threats Urban Sprawl Value-Dominant Buying LogicGrowing Popularity of Swedish DesignThreatsCopycat CompetitorsChanging Customer Needs
6Future U.S. Expansion Advantages Barriers Consumers Cost-Conscious Melting Pot of CulturesBarriersStrong IndividualismCommercials Too Edgy
7Question 1Why are the styling and designs of IKEA products so popular? Does IKEA’s blend of style and pricing have appeal to mainstream U.S. consumers?
8Product Description Positive Negative Cheap Trendy Hard to install Low-PricedBad QualityNot UniqueTrendySleekLow-PricedGood QualityUniqueStylish
9Problems Price Self-Assembly Do you think that IKEA’s LOW pricing strategy is good or bad for them?When you shop at IKEA is their self assembly furniture a hassle?Do you dislike this about IKEA?PriceSelf-Assembly
10Appeals To… College Students Kids Business Office Young Couples Do you see IKEA furniture as sheik and trendy?Business OfficeYoung CouplesSophisticated Family
14Question 2How do you account for IKEA’s growth & popularity: value or image?What can IKEA do to sustain growth after it loses some cachet?Hoovers Company Capsules and Profiles
15Image What do you think of when you think about IKEA? Appeals to Outside MainstreamSocially and Ethically ResponsibilityNo plastic bagsOwned by a charityLong term relationship with suppliers.Environmentally conscious production and manufacturing processValue or Image?Does Value only include money?Lower prices but one may spend long amount of time assembling.15
16Commercials500 Days of SummerDining Room TableI Don’t Judge
17Sustainable Growth Expansion into other markets Use successful business strategy in other waysOpen smaller “mini IKEAs”Put products into other retail stores.Food from their café in grocery stores17
18Question 3Speculate on what will happen at IKEA stores as they are tailored to fit local tastes. Is the company’s trade-off of service for low cost sustainable in the long term?
19U.S. MarketA lot of Americans live very busy lives and convenience and fast pace is very importantMost Americans are willing to pay the extra money for service rather than the do-it-yourselfIt’s believed that the low cost do-it-yourself will not be sustainable in the U.S. and other developed countriesDo you think that Ikea will last in the American market?
20American Invasion Americans did not like IKEAs’ products at first…. The sofas were too hardAppliances did not match kitchen designsEverything is do-it-yourselfThis cartoon makes fun of the Ikea approach of providing cheaper furniture that is bought not assembled.
21AdvertisingPiax= peace. This is one of the Ikea print advertisements that appeared in the holiday issue. It was done very creative and there were several ads that were done all containing nothing but furniture or people doing everyday normally things featuring their products.
24Fun Facts Cheapest Item is a dog dish for $0.29 There are 48 room settings and three model homes in an IKEA showroom522 million people worldwide went to an IKEA store last yearIn 2006, IKEA stores & distribution centers handled 281,734 tons of waste About 81% was recycled.Holiday Ikea ad.