MKTG 522 Week 5 Deliver the Value IKEA Case Study
Week 5 Assignment
Your assignment this week is to review the IKEA Case Study below. While reviewing it, consider it as
background information for your upcoming presentation to the IKEA Senior Management Team. More details
on your upcoming PowerPoint presentation to the management team are provided at the end of the case study
guidelines.
Deliver the Value: IKEA Case Study
IKEA is a Swedish-owned global business founded in 1943. The business generates annual revenues of 27
billion euros and employs 139,000 people in 298 stores and 26 countries. The values and design philosophy of
the founder continue to underpin the brand. These values might be summed up as frugal, democratic,
environmentally aware, and design oriented. IKEA has become synonymous with Swedish lifestyle. The stores
are virtually identical across the globe and sell a range of globally sourced flat-packed furniture products as well
as a range of related furnishings for the home—the stores offer customers a Swedish experience by incorporating
restaurants and a variety of customer services intended to simplify the shopping process (e.g., childcare). What
is interesting about IKEA is that customers have become a significant part of the value creating process—
customers play a key role in terms of logistics and in production. By performing the assembly of the flat-packed
furniture, customers complete the final stages in the production process. In terms of logistics, the customer
“moves” goods from warehouse-style storage through the checkout, and then transports the goods home. The
trade-off for the consumer is lower prices and immediate gratification—furniture is typically sold using just in
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time (JIT) inventory management, which means that once a customer has placed an order, the furniture then goes
into production and is delivered to the customer’s home some 3–4 months later.
IKEA’s senior management has in the past pursued an aggressive expansion policy, but management is currently
changing direction, adopting a slower rate of expansion and investing in existing stores. The company plans to
increase sales by 10% a year to 2020, thereby doubling annual sales revenues. Management is concerned about
how expansion in the BRIC countries, particularly India and China, is pursued. There are fears about preserving
the company’s culture in these huge markets (Milne, 2013).
Sources:
http://www.ikea.com/ms/en_US/this-is-ikea/company-information/index.html
Milne, R. (2013, September 1). Ikea signals slower expansion.Financial Times.
What do you think? What would you do? What problems do you foresee and how will this impact IKEA’s
Swedish concept? Please recommend a marketing solution that will help IKEA achieve growth in either
India or China based on your understanding of the place P and how delivering the value is evolving.
Please use the case study guidelines below to perform a brief analysis, identify the problem, suggest alternative
solutions, and make recommendations for the implementation of the solution that you believe is the best fit.
Case Study Guidelines
1.Analysis of the Current Situation—The proper context must be established for the case analysis. Please
provide a SWOT analysis in a SWOT box.
·Research: Identify the key environmental factors such as industry trends, level of competitiveness, customer
perceptions, legal considerations, and evolving technology at the outset of the analysis.
·Summarize the key aspects of the internal environment of the firm in terms of strengths and weaknesses and the
external environment in terms of opportunities and threats to the firm in your SWOT box.
2.The Target Market—Identify your target market: Who is your target customer? In terms of demographics and
lifestyle, what aspects of consumer behavior provide insights into this group of customers?
3.The Problem—Identification of key problem(s). It is easy to identify symptoms of problems while failing to
identify the real problems. For example, declining sales may be identified as a problem, when the decline is only
symptomatic of more complex problems that are harder to observe. Make a clear distinction between what is
identified as the problem and the symptoms of the problems.
4.Alternative Solutions—Identify and evaluate alternatives. Develop reasonable alternatives and evaluate them
in terms of feasibility, projected costs advantages, disadvantages, and potential short-term and long-term
consequences.
5.Recommended Course of Action—Select a course of action and provide the appropriate strategies and tactics
to accomplish the chosen course. Justify your choice in terms of your analysis. As most practitioners know,
charting a course of action can be a difficult job, but implementation is the true challenge. Produce a workable
action plan that would have a reasonable probability of success in the implementation phase.
This assignment will be a presentation using PowerPoint. Develop a set of at least five (5) PowerPoint slides to
present the findings of your analysis. Some additional research is expected. The IKEA website is highly
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informative. Use APA format and include an additional slide with your sources. Assume that your analysis will
be presented to the IKEA senior management team and that your job depends on it!
Grading Rubric:
Outline Points Description
Best Practices
Followed 15/15
At least 5 slides that follow provided best practices:
First slide should include the Title of the Presentation, Student’s name, Course
Name and Number, Professor’s name and date submitted
Each slide should have a clear and meaningful title
Keep text to a minimum, limit slides to five bullet points
Use simple, non-distracting slide design with easy-to-read font
Add meaningful graphics but do not use animations or sound files in a recorded
Presentation
Analysis of
Situation/SWOT 15/15 The proper context must be established for the case analysis. Please provide a SWOT
analysis in a SWOT box.
Target Market 15/15
Identify your target market: Who is your target customer? In terms of demographics
and lifestyle, what aspects of consumer behavior provide insights into this group of
customers?
Problem 15/15
Identification of key problem(s). It is easy to identify symptoms of problems while
failing to identify the real problems. For example, declining sales may be identified as
a problem, when the decline is only symptomatic of more complex problems that are
harder to observe. Make a clear distinction between what is identified as the problem
and the symptoms of the problems.
Alternative
Solutions 15/15
Identify and evaluate alternatives. Develop reasonable alternatives and evaluate them
in terms of feasibility, projected costs advantages, disadvantages, and potential shortterm and long-term consequences.
Final Solution
Proposal 15/15
Select a course of action and provide the appropriate strategies and tactics to
accomplish the chosen course. Justify your choice in terms of your analysis. As most
practitioners know, charting a course of action can be a difficult job, but
implementation is the true challenge. Produce a workable action plan that would have
a reasonable probability of success in the implementation phase.
Editing,
spelling,
grammar;
Sources on last
slide in APA
format
10/10 Written at a graduate level, more than 5 error results in 0 points.

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