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Read IKEA CASE and answer all the questions
1 - Describe the typical IKEA customer (who shops at IKEA)?
2 - Why do Americans hate to buy furniture? What are the various purchase obstacles?
3 - Compare IKEA’s value prop to that of its competitors (high-end and low-end retailers).
4 - What factors account for the success of IKEA? In other words, what is unique about their value proposition in a mature, furniture retail industry?
5 - Is there a downside to shopping at IKEA? For example, if you were to purchase a wall cabinet? Explain.
1- Some industry observers suggested that IKEA open smaller, satellite stores across the U.S. and offer a limited range of IKEA products (IKEA Lite). Similar to Walmart neighborhood stores, it would allow consumers a chance to experience the brand who do not live near full-size stores.
Would the offering of an IKEA Lite impact their value proposition and strategy? Why or why not?
2 - If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in 10 years, by 2027? Would or should they make any trade-offs for future growth?
3 - Think about other industries (such as airlines, transportation, consumer devices, etc.), what other companies have adopted a similar “inside-out” approach to their value proposition; meaning they shook up / disrupted traditional industry norms to create and deliver value.
List ONE brand and brief summary of how they changed the ‘typical’ industry approach to the value proposition and expected product.
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