Improve their e-commerce capabilities

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Expansion to other markets
IKEA needs to leverage its vast resources and superior brand equity to expand into several untapped markets such as South America, Africa and Asia. This will greatly increase their revenue and influence, and allow them to drive out potential competitors before they can gain a strong foothold.


The company has seen significant growth in its e-commerce capabilities, with the share of online sales steadily increasing over the years. E-commerce is fast becoming the most popular way for people to buy items. By investing wisely in this area, IKEA can give itself a competitive edge over other players in the sector. The majority of online sales come from the furniture and appliances division, but there is still room for the company to expand its e-commerce sales into other parts of the business.

Fortunately, their move into online retail was spurred by the pandemic. The sudden increase in online band data shoppers, combined with the closure of the majority of their physical locations, led the company to invest significantly in creating a business model where outlet stores were viewed as fulfillment centers rather than warehouses where buyers had to physically inspect and purchase products. They could seamlessly make their purchases online and simply pick them up at a store if they decided not to have home delivery. Furthermore, through their investment in AI-assisted design, customers can digitally visualize what the furniture will look like without having to physically purchase it.