Case Study : Ikea Case Study

1479 Words Mar 30th, 2015 6 Pages
Mike Borrelli
April 31st, 2015
Global Strategic Planning
Dr. Neiva
Ethical Analysis Essay – IKEA Case Study

IKEA, founded in 1943 by Swedish Ingvar Kamprad, is a global leader in the furniture industry. Starting as a mail-order company when Kamprad was 17 years old, the name IKEA comes from his initials along with his family farm (Elmtaryd) and his family’s parish (Agunnaryd). From this start-up that sold mostly small items like pens and binders, Kamprad added furniture to his mail-order catalog thus removing the smaller items from it. With the success of the addition of furniture to his catalog, Kamprad was able to open his first display store in Almhult village, seven hours from Stockholm, which also decreased product returns.
From the opening of this first display store, the IKEA concept that is seen today began to unfold. The main components of this concept include a catalog to entice consumers, large suburban display stores with parking lots, flat packaging and home assembly. The ideas of a physical location, flat packaging and home assembly all combine to keep prices low for consumers as they are eliminating transport and storage costs. All of these attributes combine to accomplish the IKEA vision to “create a better life for many people” by “offering a wide range of home furnishing items of good design and function at prices so low that the majority of people can afford to buy them.”
As briefly seen from the IKEA vision statement, the well-being of others is a value…

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