IKEA cas

Case Study N° 1: IKEA

Questions :

1. Make a detailed description of Ikea market positioning : explain where is Ikea on the strategy clock

and why; position on the clock some its competitors (Conforama, Fly, Roche&Bobois) and detail differences in their positioning  

Differentiations:

• Products adapted to the market (US, Europe...)
• They set up the displays with the furniture and accessories to encourage the customers to buy the products
• Over 7000 products per store
• shopping experience : restaurant, Kids playroom... etc

Competitors:

• Fly: have the same positioning as Ikea. It is the store that resembles the most to Ikea. They offer low prices for good quality products. But unlike Ikea, they only offer furniture.
• Conforama: they offer low priced furniture and household appliances
• Roche Bobois: high price, high quality. Diversification (new collection every 6 months).

Conforama’s position: differentiation

• Low price furniture and household appliances
• No particular effort put on the design
• No real differentiation

They aim an older market than Ikea (35-65 years old), with a mid-high income.

They advertise their products through newspapers but also radio.

The product range is wider than Ikea as they sell household appliances. There is also no particular effort put on the design.

Concerning the store location, they are located in the city centres.

Fly’s position: hybrid

• Smaller shops
• Low prices, good quality products
• Only sells furniture

Fly sells their products in smaller shops

They offer low priced and good quality products

They are not diversified very much because they only sell furniture

Roche Bobois’ position: focused differentiation

• High quality articles and high prices
• Luxury brand, original design
• New collection every 6 months

It aims to sell products to an old population with high revenues. I fact, it is luxury products sold for a high price. It is an expensive brand but offers original designs.

They offer a new collection every 6 months.

1. Present a detailed analysis of the floor map and fittings of an Ikea store and show how it is consistent with the market positioning : http://www.ikea.com/ms/fr_FR/the_ikea_story/the_ikea_store/index.html  
2. Select relevant data on Ikea web site and explain how and why it is consistent with market positioning  http://www.ikea.com/ms/fr_FR/about_ikea/index.html  
3. Make a SWOT + 5 Forces analysis of Ikea  

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