Case Analysis

Order Description MUST MUST MUST read the IKEA case (uploaded files), then answer the following questions below based on the reading. This case analysis does not need sources/references at ALL. 1. Describe IKEA’s target segment(s) and positioning (if needed, refer back to ‘What is Strategy’ by Porter and ‘Break free from the product life cycle’ by Moon) 2. Take the company perspective. What are the benefits and drawbacks of IKEAs strategy to IKEA themselves? 3. Take the consumer perspective. What are the benefits and drawbacks of IKEAs strategy to the consumer? 4.Evaluate the following strategic option. Some industry observers have suggested that IKEA should open a number of smaller satellite stores across the United States (e.g. in shopping malls, strip malls etc.). By offering a limited range of IKEA products, these “IKEA Lite” shops would presumably give consumers who otherwise do not have access to a full-size IKEA the opportunity to experience the brand. In addition, consumers who do live near a full-sized IKEA would be able to use these mini-outlets to make minor purchases (e.g. purchase a set of mugs, as opposed to an entire living room set). For the evaluation of this strategic option, use the framework in ‘How to analyze a case’ by Ellet