by Merlin Hernandez

Someone recently mentioned that IKEA is getting into the hotel business but is not going to use its brand of furniture. Sounds like an indictment of its own product to me. I haven’t gotten around to seriously looking into it but not furnishing the hotels with IKEA product appears counter-productive. Hotels may indeed be a good diversification strategy to the furniture industry as it can provide a continuum to the product platform for an appropriate marketing mix of compatible product. The new venture strikes me as ideal in terms of width, depth, and consistency for the business dream of an integrated customer service package. This is really a curious decision by a parent company that might easily capitalize on their brand equity and network of relationships to boost the launch of a hotel chain.

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