14 Aug Chapter 16 – IKEA Instructions IKEA, currently the worlds largest

Chapter 16 – IKEA

Instructions

IKEA, currently the worlds largest
furniture retailer, was founded in Sweden in 1943. The early years consisted
of selling pens, pictures frames, wallets, and other bargain items out of a
catalog. Today, the company generates over $23 billion in annual sales from
stores which focus exclusively on the furniture and home decorating market,
located all over the world. IKEA retail locations are roughly three times the
size of a typical Home Depot. In designing its store layout, IKEA is
responding to consumer interest in one-stop shoppingfinding what the
consumer wants in one store rather than having to visit numerous stores. In
addition, IKEA makes it easier for customers to shop once they enter the
store. It sets up furniture displays in lifestyle themes that show the type
of furniture that singles, couples, or young families might need. The company
also uses vignette displays to suggest how a customer can put together
various items to create a certain look. These types of displays are perfect
for the generation that is no longer interested in buying furniture to last a
lifetime but rather that fits their lifestyle now.

Presently, one of the most important
decisions facing IKEA is how and where it should look to expand its business
and its revenues. The company has announced its desire to add new store
locations in Russia, Germany, France, China, Italy, Japan, U.K., Finland,
Spain, and Switzerland. However, IKEA is more than just a bricks-and-mortar
retailer. In recent years, the firm has also become a popular online store.
Its website is very popular; it got 450 million hits during the year 2007
alone. Despite its renown among online furniture shoppers, IKEA recently
announced plans to focus on the instore experience as the only sales
channel. It does not plan to invest more money in home shopping or online
sales channels. The company bases this decision on its belief that the chain
can give customers the best offers and the lowest prices when it makes its
products available only through its bricks-and-mortar stores. Despite IKEAs
successful history, there are no guarantees for the future in the
hyper-competitive world of retailing. Is focusing solely on the in-store
experience the right decision? Can IKEA reach its growth and revenue goals
without online sales? In the U.S. alone, Internet sales of home furnishings
are over $150 billion a year, and industry experts forecast continued annual
growth at double-digit rates. Would IKEA be better to continue to push online
sales at least in some areas of the world?
1. What is the decision facing IKEA?
2. What factors are important to
understanding this decision situation?
3. What are the alternatives?
4. What decision(s) do you recommend?
5. What are some ways to implement your
recommendations?

Chapter 16 – IKEAInstructions IKEA, currently the worlds largest
furniture retailer, was founded in Sweden in 1943. The early years consisted
of selling pens, pictures frames, wallets, and other bargain items out of a
catalog. Today, the company generates over $23 billion in annual sales from
stores which focus exclusively on the furniture and home decorating market,
located all over the world. IKEA retail locations are roughly three times the
size of a typical Home Depot. In designing its store layout, IKEA is
responding to consumer interest in one-stop shoppingfinding what the
consumer wants in one store rather than having to visit numerous stores. In
addition, IKEA makes it easier for customers to shop once they enter the
store. It sets up furniture displays in lifestyle themes that show the type
of furniture that singles, couples, or young families might need. The company
also uses vignette displays to suggest how a customer can put together
various items to create a certain look. These types of displays are perfect
for the generation that is no longer interested in buying furniture to last a
lifetime but rather that fits their lifestyle now. Presently, one of the most important
decisions facing IKEA is how and where it should look to expand its business
and its revenues. The company has announced its desire to add new store
locations in Russia, Germany, France, China, Italy, Japan, U.K., Finland,
Spain, and Switzerland. However, IKEA is more than just a bricks-and-mortar
retailer. In recent years, the firm has also become a popular online store.
Its website is very popular; it got 450 million hits during the year 2007
alone. Despite its renown among online furniture shoppers, IKEA recently
announced plans to focus on the instore experience as the only sales
channel. It does not plan to invest more money in home shopping or online
sales channels. The company bases this decision on its belief that the chain
can give customers the best offers and the lowest prices when it makes its
products available only through its bricks-and-mortar stores. Despite IKEAs
successful history, there are no guarantees for the future in the
hyper-competitive world of retailing. Is focusing solely on the in-store
experience the right decision? Can IKEA reach its growth and revenue goals
without online sales? In the U.S. alone, Internet sales of home furnishings
are over $150 billion a year, and industry experts forecast continued annual
growth at double-digit rates. Would IKEA be better to continue to push online
sales at least in some areas of the world?1. What is the decision facing IKEA?2. What factors are important to
understanding this decision situation?3. What are the alternatives?4. What decision(s) do you recommend?5. What are some ways to implement your
recommendations?

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.