Ikea Case Study

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A critical evaluation of Ikea case study

In contemporary business environment which is highly effected by globalisation and urbanisation, it is interesting to see how IKEA which has been going through successful changes in the past and dominated furniture industry for decades based on its low prices and customer oriented services, to take action after realising the importance of e-commerce and the changing lifestyle in modern society. Thus, this essay is going to discuss from what kind of change and why it has been conducted in the past, its lasting impacts on the ways of change in current business practices, and the analysis of the circumstance for the changes.

In 1943, when IKEA first founded by Ingvar Kampard, it originally sells pens, wallets, picture frames, table runners, watches, jewellery and nylon stockings. After receiving the successful response from customers by selling furniture, the founder saw and grab the opportunity to reinforce its achievement by implementing the radical change during 1951 to 1953 when IKEA’s products transform into home furnishings and also change its way of marketing, from selling through advertisements paper to opening its first furniture showroom because of the external great stress comes from the other competitor. After 3 years of consolidating the new strategy in a relative stable environment, another crisis of supply chains which is also caused by competitors, lead to the revolution of delivery (flat packaging and self-assembly)

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