Mike Ward, president of IKEA's US business, wasn't satisfied with the Swedish furniture retailer's market-leading position. Since debuting in the US in 1985, IKEA had developed a loyal following, yet the Scandinavian company only held a 2.5 market share. Market research hit upon two challenges that were keeping some US shoppers from patronizing the store: a segment of consumers found IKEA's huge stores and shopping experience unappealing, while others identified IKEA's furniture as transitional and tailored for students and young people. In this case students consider the history and growth of IKEA, the value of its brand appeal and the competitive landscape of furniture retailing in order to identify market strategies for boosting IKEA's US growth while also outlining the inherent risks.
Case ID: 110503