IKEA's Strategy in the USA - Essay Example

IKEA’s designs and variety were superb and the company always had the ability to adapt to the local environment (Gordon, 2004).IKEA’s marketing strategy revolves around getting closer to the customers. IKEA often invites customers to its stores, makes them spend some time there in return for gifts, and lets them have a unique enjoyable experience instead of a shopping chore. When the story picks up in the press, it attracts more shoppers, more sales, and more buzz. This cycle ensures the success of IKEA’s marketing strategy (Bloomberg, 2005).

IKEA’s target market segment in the U.S. is middle-class people who aspire to be stylish and cool. IKEA’s products are not about tradition or conservatism. This cool quotient can be noticed in the design and layout of its products and stores (Bloomberg, 2005).IKEA should position its stores in the United States as places for great shopping experiences for the middle classes and especially youngsters. Its aim should not be to overhaul current players in furniture or other industries.

IKEA should rather try and create a special space or niche for itself. Till now IKEA has faced a few issues in expansion in the US market. This has primarily been because the US customers, in general, prefer ready-to-made products and can’t wait for a few days for them to be assembled. This is contradictory to IKEA’s core business philosophy and manufacturing strategy. IKEA has tackled this challenge by adopting a fifth of its product range according to US customers’ needs (Gordon, 2004).