Should IKEA Expand in the United States?

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Should IKEA expand in the United States?
Notably, IKEA expanded its market across Europe, the United States, and Canada through the incremental approach. The model allowed for proper study of the market by IKEA. Ideally, IKEA had ample time to gather enough experience and study of its markets before making its continuous shifts. However, the institution hasn’t found it easy in the United States markets. It faced several challenges because the market is not similar to its previous markets, i.e Europe and Canada. For instance, the United States market is diverse both culturally and domestically because it hosts people from different parts of the world.
Additionally, word of mouth is also not influential in the United States, unlike Europe. Furthermore, the management style that works in the United States is also different from the one implemented in Europe. The customers in the United States also disliked the long queues; hence, IKEA found it hard to attract more clients by improving its service delivery quality. The institution also had to adapt to the new styles recommended by the consumers in the United States since realtors in Europe use a different furniture designs.
Proper expansion into the United States market will see IKEA become amongst the leading makers of furniture in the region. The United States market has a high percentage of potential buyers, hence equals a higher demand. Additionally, the business environment in the United States is hospitable because of both political and economic stability. A stable environment is profitable because potential customers are able to transact businesses without fear. Besides, the potential customers in the United States have better taste than those in Europe.
However, if IKEA had another alternative other than the United States, then it should be a country which has a market that is almost similar to that of Canada. It has already mastered Canada’s market which is a tough market already. IKEA should therefore consider expanding in the United States by adapting to the new styles and tastes of the people, acquire new cash register equipment so as to reduce long queues as well introduce a delivery system. Furthermore, IKEA needs to invest in advertising since the United States market is large and diverse. A proper slogan like, “It’s a big country. Someone’s got to furnish it,” will actually attract more potential clients.
Initially, IKEA wasn’t progressing much in the United States because they were totally new in the market. Nevertheless, with steady adaptation, the company progressed gradually. In order to remain at the top of the game, IKEA needs to implement both cost leadership and differentiation strategies. Since the furniture industry is not standardized globally, the company needs to adapt to all its markets perfectly. Its advertisements also need to embrace the cultures of the people so that it can attract more potential clients from the targeted region. In order to achiev...