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Case Title:

IKEA – Invincible Key to Excel in America (USA)

Publication Year : 2005

Authors: Malini Nagabhushan, Vasudha Aich

Industry: Retailing

Region:USA

Case Code: COM0235B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
IKEA was a multinational home furnishings company with more than 226 stores in 33 countries in 2005. The company designed and sold a wide range of furniture products including beds, bookcases, chairs, lamps, rugs, desks, sofas and tables as well as various accessories for bathrooms, kitchens and offices. This case study discusses in detail the expansion of IKEA into the US and the initial hitches. The case further discusses the unique strategies IKEA adopted to succeed in the US market.

Pedagogical Objectives:

  • Compare and contrast IKEA from other traditional furniture stores
  • How strong is IKEA in the competitive world?
  • Pros and cons of the IKEAs unique shopping experience
  • How best is the pricing strategy of IKEA?
  • After a prolonged expansion in US, IKEA was planning for a jump start, how favorable was this expansion strategy.

Keywords : US Home Furnishing and Housewares Retail Industry; Consumer Marketing; Furniture; Retail Operations; Growth Strategy; Expansion Strategy; Growth Strategies Case Study; Product Design and variety; Unique Shopping Experience; Low-price strategy; Target Marketing; Ingvar Kamprad; Flat-pack furniture; Swedish company; Kitchen utensils

Contents : 
IKEA – Origin and Growth
IKEA in the US
IKEA’s Unique Concepts
Shopping Experience
IKEA created Low Prices
Turnover for the IKEA group

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