Essay about Global Furniture Market And Key Industry

Essay about Global Furniture Market And Key Industry

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Situational Analysis
The rivalry between existing companies is intense in the global furniture market and key industry players in Europe include Designs Inc, Galiform plc, Wal-Mart Stores Inc., Argos and others. However, Ikea today is the undisputed market leader in the furniture industry discount on the global scale. The threat of new entrants in the industry is low, and the chances of entrance of new competition Ikea is scarce because the current market is saturated and the significant amount of financial investments and experience are necessary to become a shop furniture discount on a global scale. The bargaining power of customers of Ikea is strong, as competition is intense and customers have a wide range of alternative options offered by furniture stores worldwide, as well as local furniture producers. The threat of substitute products and services is considerably low, as there are too many products and services available that can replace the demand for furniture, appliances and various forms of other products offered by Ikea. Ikea suppliers have no bargaining power, as there are numerous factories around the world with the capabilities and resources to work with Ikea. At the same time, Ikea pursues the strategy of creating strategic long-term relationships with their suppliers.

Business Objective
The main objective of Ikea is offer various home furnishing items that are created to be functional, good in quality and durability for the price, offered in prices that people of various socioeconomic classes can afford it.

Problem statement
Every company or an organization must have either small or big set of problems. In order to combat these problems the company or organization should continuously come up with innovative s...

... middle of paper ...

...excellence in cost leadership and differentiation in their products.
Ikea’s main competitors:
Designs Inc,
Galiform plc,
Wal-Mart Stores Inc.,

Promotional recommendation

- Ikea need to upgrade their website in order for customer to view the availability of products /items in all store location.
- In a case where a customer visits Ikea and the requested product is not available Ikea should follow up with customer by calling them or emailing them when the products are available.
- Ikea should have a hotline where customers can call and inquire about the availability of products in their stores ahead of visiting the store.
- When the issue is resolved Ikea must create advertisements to announce that this problem had been resolved.
- If a customer has requested a product for more than two weeks Ikea should deliver the requested product to the customer free of charges.

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