An exhaustive examination of the worldwide market rivalry, particularly in the chosen expansion nation, is essential when Ferrer Furniture begins its worldwide development plan. These two competitors, IKEA and Ashley Furniture, have been chosen as particularly noteworthy for this investigation. It is common knowledge that these businesses have a significant presence in the furniture sector worldwide.
IKEA, a Swedish multinational corporation, is well-known for its modernist designs for various furniture and appliances. Additionally, the company's interior design is frequently connected with eco-
friendly simplicity. According to Capel (2015), the critical advantage that IKEA possesses is its cost leadership approach, which consists of providing reasonably priced products of satisfactory quality. IKEA has been able to attract a diverse variety of clients worldwide with the help of this pricing approach. According to Normann and Ramirez (1993), the corporation's focus on producing low-cost goods might sometimes give the impression that the products are of poorer quality and not as long-lasting. Even though it lowers shipping costs, the flat-pack, self-assembly model that IKEA offers might not be appealing to all customers, particularly those searching for more expensive furniture already completed. The expansion of IKEA into emerging regions and the enhancement of its online presence are both significant opportunities for the company. Increasing competition from both global and local brands and the possibility of supply chain interruptions that could impact the company's global operations are among the threats (Jonsson et al., 2013).
However, another big competitor is Ashley Furniture, a home goods producer and retailer based in the United States. Ashley has made a name for itself in the industry because of its extensive product line, which combines high quality with affordable prices. According to Kozlenkova et al. (2015), the company's strength comes from offering a wide variety of products and having a robust retail distribution network. On the other hand, Ashley Furniture has several shortcomings, including its reliance on traditional retail shops in a world that is becoming increasingly digital and the possibility of quality variations due to the extensive product selection it offers. Digital transformation presents opportunities for Ashley, such as growing her online sales and penetrating new markets in emerging economies. Hult et al. (2011) identified several threats, including intense competition from domestic and
foreign companies, as well as shifts in customer tastes toward more sustainable and environmentally friendly items.
Suppose Ferrer Furniture wants to establish itself as a formidable player in the furniture industry.
In that case, it must differentiate itself from the competition by developing a reputation for producing high-quality, environmentally conscious items. In contrast to IKEA, Ferrer might concentrate on producing high-end, long-lasting furniture geared toward customers concerned about the environment. Unlike Ashley Furniture, Ferrer may use technology to improve the in-store and online shopping experience for customers by providing tailored products and services. Working with regional designers and craftspeople in the intended market might also serve as Ferrer's USP, setting it apart from its international rivals (Porter, 1985).
To sum up, Ferrer Furniture can carve out a space for itself in the global furniture market by emphasizing sustainability, quality, and technological innovation. At the same time, Ashley Furniture and IKEA have already made their mark. The key to Ferrer's global expansion success is identifying and capitalizing on its competitors' vulnerabilities while maximizing its strengths concerning market prospects.
