Ikea Case Study

IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international

IKEA is a business that designs, produces, and sells a furniture to the worldwide market. The company was founded in 1940s in Sweden by Ingvar Kampard (Milestones, n.d.). IKEA brand has been known by customers and become to the world’s largest furniture company. In 2016 IKEA sales increased by 7.9% and total sales amounted to €34.2 billion. IKEA stores are in 28 countries and more than 340 stores. Also, it has an online shopping available in 14 countries (IKEA Group, 2017). A good perspective of IKEA founder has driven the company to be accepted in the marketplace. Kampard has used the word “together” for inspiring the company and IKEA employees to work in the same way. Several reasons have built IKEA more achievement and managed the global environment in terms of operating business, saving cost, managing employees, and expanding IKEA in a new country.

1. Design- IKEA designers work in exactly the opposite way from their competitors. They design their products in such a way so that they can keep the prices low. IKEA designers design every product starting with a functional need and then decide on price. With the help of their vast knowledge in innovation and low-cost manufacturing processes through a large network of suppliers, they design the final product which can fulfill consumer’s functional needs. Large volumes are purchased to push prices down even further by distributing the R&D cost. Most IKEA products are designed in such a way so that they can transport in flat packs and assembled at the customer's

The company is known for modern designs, in various appliances and furniture, and its interior design work with eco-friendly simplicity. Furthermore, the firm is known for its cost control, operational details, and continuous product development. These corporate attributes allowed IKEA to lower its prices, during a period of expansion.

IKEA is one of the most successful furniture retailer who dedicated to sell flat pack of furniture, accessories, and bathroom and kitchen items around the world. It is well-known as a global phenomenon and its famous statement that “Our vision is to create a better everyday life for the many people”. IKEA has a clear and consistent concept in providing low price, value for money furnishings with a full range of choice. Its philosophy in the core value of cost efficiency along with IKEA's competitive strategy, which influences the performance objectives of operations in company. IKEA shows an excellent performance in achieving cost competitive advantages

IKEA is a cosmopolitan group of establishments that designs and sells ready to accumulate furniture such as beds, chair and desks, appliances, small motor vehicles and home accessories. As of January 2008, it is the world’s largest furniture trader. Originated in Sweden in 1943 by the 17 years old Ingvar Kamprad, who was enumerated as one of the world’s richest society in 2013, the company’s name IKEA is an abbreviation that contains of the initials of Ingvar Kamprad, Elmtaryd the farm where he raised up, and Agunnaryd his hometown in Smaland, South Sweden.

IKEA’s clear vision is to offer well designed and useful home furnishings at low prices so many customers will be able and capable to afford them. IKEA designs exclusive products that meets firm requirements for task, well-organized delivery, excellence and has a good impact on the environment.

This was Mikael Ohlsson, IKEA’s Chief Executive, speaking in 20121 while reporting a sales increase of 6.9 per

Ikea was founded in Älmhult, Sweden, in the year 1943 by Ingvar Kamprad. Despite being founded in Sweden, IKEA Group is headquartered in Leiden, Netherlands. Since 1982, Stichting INGKA Foundation, a foundation in the Netherlands, has owned the IKEA Group (8). Purpose for this is to fund charities through Stichting INGKA Foundation and then reinvest what they have earned back into IKEA Group(8). IKEA Group has about 290 stores worldwide in twenty-six different countries. Not all are owned by IKEA Group, some are ran by other franchises. IKEA is the largest furniture retailer in the world with an annual revenue of 35.1 billion Euros (3). They focus on the demand of their customers and have zeroed in on the factors that drive customers to purchase products (3). Their low prices and extensive selection of products that are simple to put together have propelled IKEA to the top of the furniture retail business. The culture and values of the company are inspired by Swedish society and Inhvar Kamprad , the founder(4). The culture of IKEA brings together IKEA employees in their goal to make life for people better. They share the same belief that many people should be able to customize and live in a home they dream (4). Swedish roots have shaped IKEA into a company that holds their values in high remarks, while employees strive to work hard, complete tough challenges, use common

Ingvar Kamprad, an entrepreneur, founded the Swedish furniture company IKEA in 1943 (Chu, 2013). Kamprad was only 17 years old when he founded the IKEA company. He named the company after the initials of his first and last name and the first letter of the farm and hometown he grew up in (Bhasin). In the years following, the Swedish furniture giant has grown to 328 stores in 28 countries as of August 2015. This includes 1.9 billion visits to IKEA.com, 771 million store visits, 213 million catalogs printed in 32 languages and 155,000 co-workers across 6 continents. According to IKEA’s website, their vision is “To create a better everyday life for the many people”. An interesting fact about IKEA is that its furniture production consumes one percent of all the wood produced on earth (Bhasin). The site goes on to explain how they optimize their entire value chain to provide affordable quality to their customers. IKEA expanded into China and other countries so that they could continue to attain their goal of creating “a better everyday life for the many people”. A unique aspect with IKEA is their product packaging. The product is a flat package, so it is easy for the consumers to take the product home and assemble it themselves.

To begin with, IKEA is an established global brand which has managed to attract main consumer groups, while with its vision "to create a better everyday life for many people", it promises and offers the same quality and variety around the world. Moving on, it is reputed for its strong concept and its "democratic design", since it offers a big variety of

Its products are another differentiator that has contributed to Ikea’s success. The look and feel of the

IKEA established itself as the largest furniture retailer in Sweden by the early 1970s by reinventing the wheel of furniture manufacturing at that time. Majority of furniture manufacturers in Sweden produced expensive products with designs that were basic or passed down generation to generation, additionally other manufacturers stores where located in downtown congested areas. IKEA’s strategies which consisted of low cost low priced furniture, brave intricate designs, self-assembly,

The key intentions of this report to explain IKEA business strategy, Stakeholders, goals of organisations, vision, mission and management functions overview of the management system of the company. Having the vision and mission statement all ready, it helps the company to boost its confidence and soon accomplish what they aimed for. Stakeholders play a main role in making sure the company perform well enough. The main reason this report made for to analyse how is this managing strategic will affect the company in the future.

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.