IKEA’s competitors, Rooms to Go and Ethan Allen, have a different target market that is focused on a middle to upper-class society in which the consumer wants a long-lasting product and is willing to pay a higher price. Wal-Mart’s furnishing products consist of similar items that IKEA sells except for kitchen cabinets. Rooms to Go and Ethan Allen offer entire bedroom suites, living room and dining room furniture. You can also buy the accessories displayed within the store set-ups just like IKEA. These stores all offer assistance to help you make the right selection.1.External factors changed because baby boomers had become middle aged and their desires changed. One result was fewer new homes were being built. The competition was also adapting to IKEA’s supply strategy and making furniture better for lower prices. This put direct pressure on IKEA’s sourcing advantages.
2.Too large of a multinational was another problem facing IKEA. The product range grew from 10,000 to 14,000 items causing long production runs, and a lot of the new mana
If you were to ask most American college students what IKEA means, they would sum it up in one sentence. “IKEA has the best furniture for very cheap prices and it looks good too in your college dorm room!” Ingvar Kamprad, the founder & current CEO of IKEA, could not have imagined that his company would become the most well known brand name in furniture for most of the college students in the United States. The name actually came from the first letters of Ingvar Kamprad, his farm Elmtaryd where he was raised, and those of his native village Agunnaryd, but IKEA is known throughout Europe, Scandinavia, and North America as a furniture company with great design ...