Ikea Case Study

Contents

Case Analysis 3

Situation Analysis 3

Assumptions and Missing Information 3

Statement of the Problem(s) 4

Development of Alternatives 4

Evaluation of Alternatives and Recommendation 4

Implementation 4

Evaluation and Control 4

Case Questions 4

Question 1 4

Question 2 4

Question 3 4

Question 4 5

References 6

Case Analysis

Situation Analysis

In the situation analysis we have made an assessment of the SWOT Analysis concerning Ikea. This analysis is important since it allows us to best value the internal and external strengths and weaknesses of the organization and therefore gives us a better understanding of Ikea’s strategies and operations and what will the company need to do to have a better expansion in the U.S. market. Below we have captured an analysis of the SWOT Analysis.

Assumptions and Missing Information

Before continuing to further analyze the case, we must consider the part of information that is missing and is not available in order for us to provide a thorough assessment. Since we have come up with strategies and solutions to the problems stated below, we must take into consideration all information that impact our recommendations.

In order for us to analyze the future expansion of IKEA in the U.S. Market, we need to look on the current situation of the company in U.S., how IKEA has entered the market, current market operation and how is the business going in general. The case briefly mentions that Ikea firstly entered the market by opening a store in Philadelphia in 1985 and that it has 51 stores in North America. However, we must further find how has the company penetrated the US market and what strategies it used for building success in this country.

When Ikea firstly opened its doors to the American market, the number of customers and buyers who visited the store was so overwhelming that it had to close its doors since the store ran out of its merchandise. In its first year of operation the company made $50 million of sales. For this reason, Ikea needed to ensure that it had enough inventory before opening more locations (Hirst, 2014). Today Ikea counts 40 store locations in the US and is ranked in Forbes list of world’s most valuable