Ikea Aeticle Review

1214 WordsMay 3, 20155 Pages
Student’s name Instructor’s name Class name Date Case study: IKEA Group IKEA Group is a furniture retail store that operates stores all over the world. IKEA Group was founded in the year 1943 by Ingvar Kamprad. At the time, the company sold household goods at a discount prices. Later, in 1947, the company started to sell home furnishing. After two years, the company started its first furniture showroom. The company was designing its low priced furniture’s. By 1958, it had opened its first inaugural store that was located in Almhult in Sweden. In 1965, IKEA was the most favored furniture store by the swede because of its furniture’s that were price conscious. Currently, IKEA Group is the world’s top furniture retailer. It has a total of 154 stores in more than 22 countries in the world and servicing more than 286 million customers every year. IKEA stores practice a strict self-service for the customers who want to buy their products. It has many stores in America and the company is thinking about adding more stores to the American market. Statement of problem With over 154 stores in America, IKEA is considering expanding its base to the American people. Currently, it has 14 stores all over America. The company is planning to increase its stores to the American people. The problem is that there are other well established companies and this poses a challenge to IKEA expansion plan. Another problem is the competition from the small furniture shops found in the United States. These two problems present a challenge to the expansion of IKEA in the United States. Identify issues linked to the tactical problem Competition among the furniture retailers in the United States market is very tight. Some of the issues that add up to the competition in the United States market is include the tight market share of the furniture retailers. Considering that only the top

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