Description
Read IKEA CASE and answer all the questions
1 - Describe the typical IKEA customer (who shops at IKEA)?
2 - Why do Americans hate to buy furniture? What are the various purchase obstacles?
3 - Compare IKEA’s value prop to that of its competitors (high-end and low-end retailers).
4 - What factors account for the success of IKEA? In other words, what is unique about their value proposition in a mature, furniture retail industry?
5 - Is there a downside to shopping at IKEA? For example, if you were to purchase a wall cabinet? Explain.
1- Some industry observers suggested that IKEA open smaller, satellite stores across the U.S. and offer a limited range of IKEA products (IKEA Lite). Similar to Walmart neighborhood stores, it would allow consumers a chance to experience the brand who do not live near full-size stores.
Would the offering of an IKEA Lite impact their value proposition and strategy? Why or why not?
2 - If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in 10 years, by 2027? Would or should they make any trade-offs for future growth?
3 - Think about other industries (such as airlines, transportation, consumer devices, etc.), what other companies have adopted a similar “inside-out” approach to their value proposition; meaning they shook up / disrupted traditional industry norms to create and deliver value.
List ONE brand and brief summary of how they changed the ‘typical’ industry approach to the value proposition and expected product.
Explanation & Answer
Attached.
Surname 1
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IKEA
Part 1
1. The typical Ikea client is young low shifting to middle income family. IKEA targets
clients looking for value with willingness to do bits of work serving themselves, moving
the products home and assembling the furniture for the best price.
2. The furniture emits gasses because of the formaldehyde glue utilized to fix it. The fumes
emitted by the toxic substance provide Americans sporadic headaches as well as sore
throats. Formaldehyde is considered a carcinogen. Americans think IKEA is secretly
attempting to commit mass universal genocide (Baraldi 110). The clean, fashionable,
spacious romanticized home in the display area becomes a picture of a relationship
nightmare.
3. Ikea makes its own low-cost ready-to-assemble products. Ikea possesses the furniture...
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