Ikea Invades America

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IKEA Invades America IKEA, a worldwide top furtinuture retailer, has presented high perfomance in the local and international market. The company’s sucessfull perfomance was achived by low price, wide variety and good design products, shopping convenience and cheap transport for the constumers due to the flat packing technology. However, in the US the retailer faces some challenges on both consumer and market sides, notably the reluctance of some customers to change the furniture, competition from existing furniture retailers and different preference of consumers. IKEA might have failed in market research when decided to enter in this country. From the consumer side, in general, Americans think that furniture should last a long time, which is not aligned with IKEA values that does not encompass products’ durability. Besides this, the consumer has different preferences in comparision with consumers from the other countries, for example, some of them didn't like IKEA products because the beds and kitchen cabinets did not fit American sized sheets or appliances and the sofas were not comfort. Finally, these consumers were not used to IKEA's self-service concept. Regarding the market side, IKEA faced some problems related to its competitors. In the US, the market was very fragmented and usually, the high end retailers offer credit services, free delivery, personal consultation with high prepared sellers, interior design and a vast variety of products. Observing IKEA sales representation by regions, it can be point out that the goal for IKEA should be the increase of the sales in North America in the short term and sustainable growth among the years. In order to achieve these goals, one alternative is to change the American’s ideology that furniture needs to last a lifetime to something disposable. For the second one, an alternative of strategy could be

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