IKEA Invades America

It is evident from the case that IKEAs main problem is a limited variety of product despite its solid and successful presence in U.S. In other words, their current product offering is too narrow for considerably bigger U.S market. Moreover, they want to expand their number of stores to 50; thus, they would have to increase their product offering to remain successful. It is not possible for a company to develop A and serve markets 1, 2 and 3. It would need to develop more products to serve more markets. For the resolution of this problem, I propose following options:

Increase product awareness and educate customers

IKEAs main concern is to develop the balance between furniture with Scandinavian designs and making them appeal and attract customers. To resolve this issue, I deem that IKEA need to use solid advertising and promotional campaigns to let the people become aware of the products. They in other way need to educate the customers. In the past, it had been possible for the company to appeal the Americans for the lifetime furniture and commitment free approach. In the same way, they need to alter the global preferences for their Scandinavian furniture.

Pros and Cons

The campaign for product awareness and customer education would indeed benefit the company in many ways. Through advertising and promotion campaigns, the company would be able to increase its product recognition. This would also help promote the Scandinavian designed furniture, particularly in U.S. Only disadvantage of this type of campaign would be that the company would have to bear high research and advertising costs.

Develop New Designs

The second strategic option available for the company is to localize their designs according to a specific niche. For instance, the company needs to offer a different bundle of its products in Asia and America. To achieve the number of stores reaching 50 by 2013, the company would have to make changes in its product and service offerings. To appeal and attract more Americans, the company can hire American furniture designers. The company needs to broaden its offerings and services. The company already has been successful and appealing to several markets; however, they need to adapt themselves to different markets to acquire them.

Pros and Cons

It would cost them higher to keep changing designs with the acquisition of new markets. However, new designs would attract the Americans as well as other closely situated people about IKEAs new offerings.

Increase Services
The company previously expected the customers to purchase every part of furniture themselves. Then they expect them to take it home themselves and even assemble themselves. However, American markets are quite different. I propose that the third alternative for the company is offer assembling and delivery of products by charges some fees.

Pros and Cons

This alternative would entice Americans to use more services and take help of the company in assembly and delivery of furniture. However, this would vanish away the slogan of the company Low price with meaning.

Recommendation
IKEAs main problem is a limited variety of product despite its solid and successful presence in U.S. In other words, their current product offering is too narrow for considerably bigger U.S market. Moreover, they want to expand their number of stores to 50; thus, they would have to increase their product offering to remain successful. According to CEO of IKEA, the company is unique only because it focuses of Scandinavian design and offer lower prices with meanings. Thus, the option of changing design would not appeal much to the company as it takes away the uniqueness of the company. Thus, I would recommend the company to increase product awareness and education customers about its products. In short, I would choose the first option despite its higher costs. The company needs to inform public that its designs are solid and their products are practical. However, the company can add some steps from the option number two too this proposal. They can add new styles having American touch but the original Scandinavian designs should not be suppressed.

Implementation
The implementation plan is very easy and clear which follows two paths: The company will conduct a research and compose a solid advertising campaign to increase public awareness about its products. The focus of the company should be on solid designs and their functionality. On the other hand, the company will start observing the Americans habits and design products according to their choices. They should collaborate with American designers and wisely incorporate the American preferences into their unique Scandinavian designs.