Option 3: IKEA (pp.185–186)

• Evaluate IKEA’s business model concept and how it has evolved through the years. It has been stated that they have essentially changed the way people shop for furniture. What are the pros and cons of this type of strategy for IKEA?
• Through the application of a PEST analysis, what are the current environmental factors impacting IKEA?
• Who are the top three competitors of IKEA, and what are their advantages/disadvantages with respect to satisfying the value proposition of their customers?
• As IKEA looks to maintain markets in the United States as well as expand to areas such as Asia and India, what would you recommend to maintain customer value, satisfaction, and loyalty

Answer preview

IKEA is a multinational retail store that designs and sells accessories, furniture, bathroom, and kitchen items. The company, which is a giant company, has its humble beginning in Sweden, where it began a simple furniture store. Today, it is the leading retail store selling furniture globally. The company has established various locations across the world. It offers modern furniture, home accessories…