Reference no: EM132159990

IKEA uses social media such as Pinterest, Twitter, and Google+ to connect with local customers in many of its markets. By engaging customers with interesting and use- ful content, the retailer builds brand awareness, polishes its image, and promotes selected products or categories. Its U.S. Facebook page, with more than 3.2 million likes, features product photos, store news, and links to nonprofit groups that IKEA supports, such as UNICEF. Its U.S. Twitter account, named @DesignByIKEA, posts a variety of tweets and Vine videos focusing on seasonal merchandise and solutions to common problems like storage and organization. Although IKEA has traditionally concentrated on brick- and-mortar retailing, it is upgrading its e-commerce tech- nology and its logistics to accommodate customers who like to browse and buy with a click. The retailer now makes 70 percent of its products available for online purchase and delivery in 13 countries. Within just a few years, all of IKEA’s products will be included in its e-commerce offerings.42

Questions for Discussion 1. Would you recommend that IKEA continue printing and mailing catalogs or should it switch to an online-only catalog? Explain your answer. 2. If you were in charge of choosing IKEA’s next U.S. store location, what factors would you consider in making your decision? 3. How much channel power does IKEA possess? What are the implications for the role it plays in the channel? 4. What are the main logistical issues IKEA must address to be able to make 100 percent of its products available for online purchase and delivery?