3.

How would you characterize IKEA’s strategy before its missteps in North
America? How would you characterize its strategy today?

Before one enters into a new new market, one must know the needs, preferences and tastes of the
customers before one begins to ship the products to the market. IKEA failed to do this. In Europe,
the strategy to not be responsive to customers’ needs had worked well. In America, customers were
very sensitive to the prices and design of the products. IKEA had failed in executing a large-scale
market survey and research in the American market.

IKEA’s current strategy is to target young people, college students, young married couples and 20 to
30 something singles. Young married couples buy many products from the furniture industry
because this is a time where they want to settle in and establish a family. Products that are