IKEA Case Study 12/31/2009 GAPR09RM085 Riddhima Chopra IKEA Case Study December 31, 2009 Table of Contents About....................................................................................................................................................... 3 History ..................................................................................................................................................... 3 Corporate Structure .............................................
Words: 5440 - Pages: 22
MAN3503-Strategic Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing
Words: 1187 - Pages: 5
IKEA CASE STUDY by Kasimir.v.k 1) In the early 1970s, IKEA became the largest retailer in Sweden. For the first time, a company changed the concept of furniture. They revolutionized the idea of simple-using furniture. This has been a market niche they entered during the early 1970s, which had an effective impact since furniture retailing did not work well. In addition, IKEA was able to offer the same quality or even better than other Swedish furniture manufactures for a much lower price. This was
Words: 872 - Pages: 4
examine the growth strategy. At age 17, Ingvar Kamprad founded IKEA with money (a gift) from his dad for successfully completing his studies. In 1951, he published his first catalog. Two years later, he opened a showroom in Almhuit and soon thereafter began designing his own furniture. In 1956, IKEA started testing flat packages. They designed products that could be packaged flat, which greatly reduced company and customer costs. IKEA opened their first store in Almuit in 1958, followed by another
Words: 1779 - Pages: 8
IKEA was founded in 1943 by Ingvar Kampard and focuses on stylish but inexpensive Scandinavian furniture targeted at low to mid income families. In 1956, IKEA adopted the concept of self-assembly by opening a self-service open warehouse. Internationalisation began in 1973 and now IKEA is operational in 22 countries with 178 stores, having over 70,000 staff under employment. IKEA is able to maintain low-cost without sacrificing quality and offers great design to keep customers coming back. Instead
Words: 1741 - Pages: 7
IKEA case study 1. Firm specific advantages IKEA has a variety of firm specific advantages since its business approach appeared to be very unique for the furniture industry. First, IKEA’s most important specific advantages were its good value for the money. IKEA used this advantage for its expansion plans all over the world. IKEA when they failed in the USA had to highlight this specific advantage to bail them out of the financial difficulty they had gotten into. Second, the most innovative decision
Words: 636 - Pages: 3
firm and country specific advantages could be the following: IKEA sells the same furniture all over the world, so IKEA rips huge economies of scale from the size of its stores and the big production runs necessary to stock them. IKEA also offers a low competitive price because of the economies of scale (30% lower than competitors) Exclusive relationship between IKEA and its suppliers, offering modern and exclusive designs for IKEA. Designers also work closely with suppliers, keeping the costs
Words: 2156 - Pages: 9
Case Study – IKEA 1. History (Explain) IKEA was founded in 1943 by 17-years old Ingvar Kamprad in Sweden. First two letters IK of IKEA were taken out of the founders name and last two letters EA symbolise the name of Kamprads parents farm ‚Elmtaryd’ and the village ‚Agunnaryd’ where the farm has been located. First the company sold various consume good such as pens, watches and wallets. In 1947 Kamprad started also selling furniture via distribution, especially to the poorer farmers in Sweden
Words: 1182 - Pages: 5
What factors account for the success of IKEA? Some factors that have accounted for the success of IKEA are the prices they put on the furniture, the cost efficiency in the way of what the furniture was composed of, their form of transportation, and the atmosphere of the store itself. IKEA is known for having extremely low prices. The article states that IKEA would look at the competition’s prices in each category, and then set their own prices somewhere from 30% to 50% lower. The vast price range
Words: 1476 - Pages: 6
IKEA Case Study IKEA Case Study The founder of IKEA, Ingvar Kamprad, established the IKEA brand in Sweden when he was only 17 years old. It was 1943, and the IKEA brand started its enterprise journey by selling items such as seeds from Kamprad’s family’s farm and Christmas magazines. By 1948, the IKEA furniture line came to life. Kamprad’s concept was “good furniture could be priced so that the man with that flat wallet would make a place for it in his
Words: 1085 - Pages: 5
