IKEA: Managing Global Expansion


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
  
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTA068
Case Length : 13 Pages
Period : 2003
Organization : IKEA
Pub Date : 2003
Teaching Note :Not Available
Countries : Scandinavia
Industry : Consumer Durables

To download IKEA: Managing Global Expansion case study (Case Code: BSTA068) click on the button below, and select the case from the list of available cases:





Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges
» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

The IKEA business idea is to offer a wide range of home furnishings with good design and function at prices so low that as many people as possible will be able to afford them. And still have money left! Most of the time, beautifully designed home furnishings are created for a small part of the population - the few who can afford them. From the beginning, IKEA has taken a different path. We have decided to side with the many.

- IKEA Website1.

Introduction

In 2002, IKEA was one of the leading furniture retailers in the world. IKEA offered a range of items - furniture, cookware, tableware, kitchen utensils, gadgets, textiles, bedding, cushions, shower curtains and paint. It had more than 160 stores spread over 30 countries. IKEA had emerged as a global player in one of the most highly fragmented industries in the world. In 2002, Interbrand ranked Ikea 44 on its list of the top 100 global brands, ahead of Pepsi and Harley Davidson. IKEA's success, to a great extent, had been shaped by founder Ingvar Kamprad. His strong belief that people would buy more furniture if the price was low enough, quality good and there were no delays in delivery, had gradually revolutionized the conservative national furniture markets first in Europe and then in other parts of the world.

IKEA's business formula had been built around high-quality, Scandinavian design, global sourcing of components and knock-down furniture kits that customers transported and assembled themselves. IKEA's cost leadership strategy had enabled it to pass on to customers lower prices, anywhere from 25% to 50% below those of its competitors...

Excerpts >>

1] www.ikea.com

  

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Study, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.