IKEA Invades America 1. What factors account for IKEA's success?
IKEA’s success can be attributed to many factors, including: cost efficiency, low waste mentality, product strategy and design, and partnerships. Their slogan was “low price with meaning” commitment: form, function and affordability. IKEA uses cost-cutting strategies for materials, packaging, shipping, and design in order to keep prices low for customers. Their engineers designed products so only visible surfaces that were likely to undergo stress would use high-quality materials. It was also common for IKEA to use different suppliers to make one product to ensure that the parts used were acquired at the lowest possible prices. The products are also packed flat to save on shipping and storage space. Self-service and self-assembly also help reduce costs for the customer. The company also tries to reduce cost through its promotion of a low waste mentality to its employees. IKEA’s matrix approach helped with their ability to identify market opportunities and their U.S. invasion. In the beginning, Americans did not like the design because the furniture did not fit their lifestyles, measurements, comfort level and long-lasting expectations. So IKEA decided to start the “Unboring” campaign—“It’s just furniture. Change It.”— to increase and improve its appeal and cutting-edge design. Customers also appreciated the warehouse models, child care station and in-store restaurant. 2. What are the downsides, if any, to shopping at IKEA?
The downsides to shopping at IKEA include: * Furniture required self-assembly and transportation *