Ikea Specific Advantages Essay Example

layout to conform American shopping styles, and now has a more generous return policy and next-day delivery service available for the US market. IKEA also had to create a stable chain supply.IKEA now produces about 45 % of the furniture sold in its American stores locally, in order to reduce the dependence on imports.

As far as the management is concerned, IKEA had problems in the amount of independence and authority the company gives to its employees who sometimes in the US feel uncomfortable. IKEA also trust on the word of mouth strategy because they had great results in Europe, but this strategy is not too good in the U. S. where a high diversity among the consumers exists. 4. How does the TV advertising campaign initiated by IKEA overcome the entry barrier of high advertising expenditures?IKEA overcome the entry barrier of high advertising expenditures making a creative and daring series of 30 seconds TV spots that catch the attention of the public in general (target market included), thus creating a positive impact on IKEA’s image.

Although these spots impact on the target market, it also has an impact among the advertising critics and in the public in general, so they can spread the message through the mouth to word strategy. IKEA’s spots are very creative and this is very important because in a short TV spot they reach as much people as possible, more than just the target market.