Case Analysis of IKEA Invades America

IKEA is a private home products retailer, which deals internation tout ensembley in prone pack furniture, accessories, and bathroom and kitchen items. IKEA is the company which is being impressed as the pioneer in flat-pack designed furniture this firm is now the largest furniture manufacturer of the world, with 120,000 employees most the globe.The revenues of IKEA have been growing at a rapid pace in the past few years, in the fiscal year of 2008-2009 these amounts soared up to $28.8 million USD this indicates a growth of 7 percent in comparison of the pop off year. The reason behind this rapid growth of IKEA is that it has been focusing on providing the marketplace with affordable home furnishing products (Grant, 2005,p.120) that it is why it has been a major mastery all across the world especially in Europe where middle variety earners have become citizens of the IKEA world.Delivering value priced home furnishing products has been the intention of IKEA since its formation focal point back in 1943. IKEA has been on the verge of a major success in the American market as its stakes are emerging in the US since every passing day no query that the managers at IKEA have devised some ingenious strategies which have earned this multinational giant a strong position in the North-American market as well.The American market is majorly divided into two prime segments and the basis of this course is price. The low and the middle class customers tend to buy from different topical anesthetic outlets or marts (like Wal-Mart, Target etc) due to the expensive nature of the products offered by the smart and the renowned brands. Whilst the upper class opts for the luxurious and classy outlets where the goods are overpriced, these sellers regard their products as onetime buy.If we analyze IKEAs dodge on the other hand it caters to the low and the middle classes primarily by providing them the proper value of their money, not only this the missing feature of style is withal added by IKEA, and hence the Americans are getting influenced by the IKEA magic. The share of the grant priced sellers is not much in the American market (merely 14-15 percent), so the strategy of IKEA is gaining it the market share and thus it is being translated in the revenue account.