Ikea Case Report

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Kathryn England Brenna O’Regan John Hudson IKEA’s Global Strategy: Furnishing the World IKEA is a private-owned international furniture manufacturer known for its low prices and unique style. The company’s vision is to create a better everyday life for its customers by offering a great selection of well-designed, practical home furnishings. Since IKEA has chosen this sort of affordable and distinctive marketing strategy, the company has been very successful in its expansion throughout the world. In 1943, Ingvar Kamprad founded what is now known as IKEA in Almhult, Smaland, Sweden (Johansson, J.K. (2006) p. 85). Initially, the company sold such items as pens, wallets, picture frames, table runners, jewelry, etc., anything that Kamprad thought there was a need for (“IKEA” n.d.). Then, in 1947, furniture was added to their product selection, followed by personally designed pieces in the year of 1955 (“IKEA” n.d.). IKEA is also greatly known for its concept of selling disassembled furniture. Using this sort of strategy, in turn, has considerably reduced costs and their use of packaging, creating another great advantage for the company (“IKEA” n.d.). IKEA continues to use the same warehouse store design and layout as it has in the past. This design consists of “knockdown” inventory kits being stacked on large racks throughout the store, with an assembled version available for display (Johansson, J.K. (2006) p.85). Having their items packaged and stored in such a manner allows customers to immediately take their purchases with them, eliminating any delivery costs. IKEA’s product line is quite extensive, including every possible item necessary for the home. These items include such things as upholstered furniture, coffee tables, dining tables, beds, wardrobes, chairs, curtain accessories, wall decorations, bookcases, lighting, garden

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