• Ikea revolutionized retailing from the 1950s, persuading shoppers to travel to its out-of-town stores, navigate their mazelike formats to collect their furniture, transport it home, and assemble it themselves. But as Jesper Brodin took over as chief executive in 2017, it quickly became clear its customers had had enough. Brodin travelled to Ikea stores in several countries and met with customers. All gave him the same message: we like Ikea, but it’s not working for us. Their main complaint? A lack of convenient places to shop. Brodin led changes on several fronts: Ikea invested heavily in its online business, trying to catch up with rivals such as Amazon and Alibaba that were attracting many of its customers; it tested out smaller store concepts including in the center of big cities and shopping malls, which the company had long resisted. (In southern California, it opened a smaller store in Carson, near the 495, 110, 10 and 710 freeways). It also offered shoppers new services, from home delivery to paying somebody to assemble furniture (through one of its biggest ever acquisitions, the odd jobs service TaskRabbit).

1. Please identify and explain at least three risks inherent in Ikea’s new strategy.
2. What does it need to do to successfully to maintain its uniqueness and identity as a brand?