Ikea
IKEA, the famous Sweden furniture retailer, opened its first store in United States in 1985. After ten years diligent practice on advertising and adjusting its products to fit the U.S. furniture market, IKEA were admitted by the U.S. customers and its sales began to increase. It ranked fourteen in 2002.
America furniture market was highly fragmented. It consisted of many low-end and high-end retailers. Low-end retailers, e.g. Walmart, offer low price but poor designs and services. High-end retailers, e.g. Ethan Allen, provide high quality products and services with high price. IKEA's competitors are more low-end rather than high-end retailers. IKEA's strengths are affordable price with fascinated design, cheaper and easier transportation for products, customer involvement from product selection to final assembly, and amenities such as Scandinavian Café and Childcare Center within stores. IKEA, however, is also weak on poor product longevity, increased self-service assembly burden......
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