Ikea became the top furniture global retailer in the world thanks to its innovative business model. If you opt for IKEA case study help from professional websites like MyAssignmenthelp.com, you will surely get an abrupt idea on IKEA’s business strategy. With 433 Ikea international stores in almost 53+ countries and approximately $45.5 billion in global retail sales in 2019, everyone has an Ikea story. You can easily get the IKEA success story if you search for online IKEA SWOT and pestle analysis.
So how did Ikea expand so much beyond its original role as a furniture company? The fact lies within the swot analysis of IKEA case study.
IKEA is a loyal brand that encourages obsession, and that is on purpose. Here’s how Ikea hooks you: from psychological gimmicks to the store’s design and excellent value.
Let’s have a glimpse on the crucial aspects of IKEA’S outstanding success.
Overcoming the worst aspect of furniture shopping
Furniture was viewed as an investment for the following 20 years before Ikea even existed.
According to several business analysts and experts, this led to a lot of anxiety and uncertainty.
They produced items that were intended for immediate use and were nicely designed, if not particularly durable. and were eventually discarded when they were worn out or, more likely, when the user had switched to a different taste level or purchasing strata.
You can get a brief idea on the IKEA’s core marketing strategy from IKEA pestle analysis and it’s case study.
Reaching the appropriate demographic
Experts assert that Ikea has a strong appeal among young people.
The products have a “whimsical” name, a straightforward aesthetic, and are tidy.
In addition, Ikea is renowned for paying employees a living wage and being open about the manufacturing process.
Not too costly, but also not too cheap
Business experts think Ikea’s price point is ideal.
Although deep discounters like Aldi offer lower prices, consumers believe they are getting a good deal at Ikea.
Nevertheless, Ikea is significantly less expensive than rivals like West Elm and Bed, Bath & Beyond.
Shops are a place to go
Customers need a reason to visit stores as e-commerce grows in popularity.
Ikea has established itself as a distinctive shopping location thanks to its elaborate showroom and cafeteria.
Having a foresight nature of the IKEA’s inventor made the brand more successful and reliable to the customers worldwide
According to business professionals, “Now that the middle class in Asia is growing, IKEA has its sights set on that region.”
IKEA founder Ingvar Kamprad started out by selling furniture through his mail-order business. He then encountered a social issue and used it as a business opportunity. Furniture prices have increased by 23% more than any other global retail good since 1935. In response, Kamprad developed a line of home furnishings that was affordable for everyone.
The current furniture cartel made an effort to stunt Kamprad’s development and prosperity.
Kamprad was forbidden by the cartel from making direct sales to attendees at events! then succeeded in convincing the furniture-making cartel to stop supplying Kamprad. In response, Kamprad switched suppliers, enabling it to lower its prices even further.
IKEA’s success was largely attributed to low prices and Kamprad’s aptitude for profiting from unfortunate circumstances.
Because of the layout, global retail has become retail therapy
IKEA specialists shared, that Ikea’s stores also appeal to the subconscious mind, which is the main factor in decision-making.
For starters, shoppers are likely already familiar with the layout of Ikea’s warehouse stores’ showroom floors, where furniture, pillows, and other home goods are staged in makeshift rooms.
The overwhelming amount of white in kea also appeals to the subconscious, a neuromarketing strategy that tech giant Apple also heavily employs.
The layout of Ikea encourages customers to make larger purchases in addition to the clever neuro design.
Ikea arranges the store along a designated walkway that leads customers through nearly all of its inventory in one direction.
Several case studies discovered that IKEA’s distinctive marketing and management planning strategies draw customers back into the physical store. The success of Ikea as a global retailer can be attributed to several key factors. Firstly, Ikea has a unique and innovative business model that prioritizes producing affordable and stylish furniture that is intended for immediate use. Secondly, Ikea has a strong appeal to younger generations due to its simple aesthetic and transparent manufacturing process. Thirdly, Ikea’s price point is attractive to consumers who believe they are getting a good deal. Additionally, Ikea’s stores have become a destination due to their elaborate showrooms and cafeteria, and the company has a strong online presence as well. The company’s founder, Ingvar Kamprad, was able to capitalize on unfortunate circumstances and develop a line of home furnishings that was affordable for everyone. Ikea’s store layout is also designed to encourage customers to make larger purchases. Overall, the combination of these factors has contributed to Ikea’s success as a global retailer with over 433 international stores in 53+ countries and $45.5 billion in global retail sales in 2019.
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