Ikea Case Study

1068 WordsFeb 8, 20155 Pages
Case Study: Image Credit: http://www.ikea.com/ms/en_US/about_ikea/index.html Case Analysis Abstract Since the founding of IKEA took place in 1943, the Swedish company has been offering home furnishings, kitchens, appliances, sofas, beds, mattresses and other accessories through good design, high quality and a low price. The company's name is an acronym comprising the initials of its founder Ingvar Kamprad, Elmtaryd (the farm where he grew up) and Agunnaryd which was his hometown in Småland, South Sweden (Bartlett & Nanda, 1996). The company, which broke new ground on flat-pack design furniture at discount prices, is now the world’s leading furniture retailer home furnishings. As of August 2011, there are IKEA stores in more than 38 countries, with 287 stores in 26 of those countries belonging to the IKEA Group (www.ikea.com). Their unique store experience consists of costumers deciding on what they want to purchase, obtaining an inventory tag number, picking the unassembled item up from the shelves and then assembling it at home (Peter and Donnelly, 411). This case study will discuss IKEA’s marketing strategies and the company’s innovative idea of offering home furniture products of good function and design. The Facts IKEA is a privately-held internationally known furniture retailer designing furniture with the price tag in mind from the start. Their strategy focuses on coming up with ideas to offer furniture at prices lower than their competitors by using simple cost-cutting solutions without affecting the quality of the product. This is summed up in their market position statement: “Your partner in better living. We do our part, you do yours” (IKEAFANS Forum, 2007). As IKEA took the company to a global level expanding in Europe and entering countries like Canada and the US, their team initiated a strategy that aimed to take better control of

More about Ikea Case Study

Open Document