Ikea company is an international home products retailer which sells furniture, bathroom accessories and kitchen items. The company emphasis on providing home furnishing products at low prices to achieve competitive advantage in the global market (IKEA Group, 3). In order to achieve competitive advantage, Ikea company uses good product and low price more than competitors. Similarly, it offers good services, broad varieties and high quality of design in its competitive strategy (Economist, 2011). Since Ikea suffers from a lack of innovation, and experiences the chances of providing a very similar base, it will face stiff competition in Mexico market. This is so because the Mexican home furnishings industry is extremely competitive because innovation and design center play a main role in promoting the home furnishing products.
The competitors that Ikea company will face in Mexico are Walmart stores that have various outlets in Mexico, and El Puerto de Liverpool which has strength in home furnishing products (Euro Monitor International, 2013). In additional, Mexico market has a powerful penetration of stores, which sell their own label furnitures and accessories. The furniture sales trends in Mexico are mostly controlled by retailers such as Grupo Gigante and Muebles Dico as well as Wal-mart and Sears who are Ikea’s competitors. Others include chained outlets such as Zara Home, H&H home and Crate & Barrel stores who are positioned in the new growth market and try to open up the area and initiate growth (Jurevicius, 2013).
Although Ikea Company has a potential market in the Latin America because of its competitive strategies, it will face stiff competition from these competitors. The furniture companies and retailers in Mexico have an advantage over Ikea because of their innovative strategy and customer loyalty.
Works Cited
Economist. "Furniture shops: The secret of IKEA's success." The Economist. N.p., 2011. Web. 30 Nov. 2013.
Euro Monitor International. "Home Furnishings in Mexico." Global Market Research and Analysis for Industries, Countries, and Consumers. N.p., 2012. Web. 30 Nov. 2013.
IKEA Group. "Ikea Group SWOT Analysis." IKEA Group SWOT Analysis 14.3 (2013): 1-9.
Jurevicius, Ovidijus. "IKEA SWOT analysis 2013 | Strategic Management Insight." Homepage | Strategic Management Insight. N.p., 2012. Web. 30 Nov. 2013.
