Ikea Case Study Analysis Essay Example for Free

Ikea Case Study Analysis EssaySymptomsIKEA has a good international brand recognition built upon a unique philosophy and low product prices, feature with solid gross revenue performance. IKEA s famous vision is to create a better everyday manners for many people. The company maintains total control of its design, pricing and supply of product ranges globally, and thus has a product portfolio that caters for most consumer lifestyles and budgets. IKEA is very much reliant on Europe, with 82% of stores located in this region, European grocery can be regarded as saturated and in times of economical downturn sales in coming years will be unlikely to be something more than just down in the mouth. Problem definitionWhether to continue IKEA expansion to new markets, e.g. Asian market? And how to secure IKEAs agonistical advantage in the future?AlternativesFirst substitute(a) In order to keep good tone standards of IKEA products, no further extension to new markets in the nearest future+ It will give an fortune to preserve well-known global brand and its strong position at European and American market The company will lose market share The sales will reduceSecond alternative Continue expansion into non-Western markets, including China+ Sales increase by gaining the market-The image of IKEA may be weakened as in China it may be very hard to keep with quality standards at the same time offering products for extremely low priceRecommendationsI would recommend to focus on more on markets, where IKEA is currently doing its business. Expansion to Chinas market with very tough conditions (in monetary value of price) may change the IKEA forever and even destroy the company, it will be another very brazen-faced and not very qualitative retailer from China, but not IKEA anymore. Having chances for gaining Asian market, IKEA may have openhanded threat to loose European and American market.I believe there is always room for improvement, IKEA could elevate servi ces, for example develop of e-commerce, consumers may find Internet shopping preferable, as the Ikea reputation means that they are already assured of the quality and craftsmanship of Ikea products, which is opposed to the present belief of Ikea that customers should be able to looking and check the quality of products before purchase.