QUESTION 3

QUESTION 3

As IKEA plan to have more stores across Malaysia, what suggestions would you offer to IKEA on the location of its new stores?

IKEA decided to set up another store in Klang Valley, Peneng and Johor. Fistly, they need to put their location in any developing town. This is because any developing town will have an attraction to other people to come also have many populations (middle class). So, consumer can easily get their shop near their house.

IKEA need to build up their stores more different than it competitors. This is because it give benefit and competitive advantage to them.

Other than that, IKEA need to provide their stores near consumer houses because it is personal factor that can attract people to buy from their stores. Usually, consumer does not like to visit stores that is far away from their house and not situated in interesting and popular location.

IKEA also need to set up their stores far away from their competitors because this could prevent from competition.