Ikea Case Study Essay

1042 Words Mar 1st, 2013 5 Pages
I. Factors Contributing to Ikeas Success Swedish company, Ikea, has experienced many triumphs throughout the business history. Founder Ingvar Kamprad created a successful business from a financial gift his father gave him. There are several factors that contribute to Ikea’s success. These factors include their low cost price strategy, the design of their store, and the shopping experience for customers.
Ikea’s low cost low pricing structure.
Ikea’s low cost pricing strategy was a key to their rise to success. It started in 1951 when Ikea abandoned all its other catalog products to focus solely on low priced furniture. In the beginning, Ikea’s furniture was produced by local manufactures. The pivotal point in Ikea’s history came in
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By using lower price woods on the less visible low stressed areas of the furniture, while simultaneously using high end woods on the most visible high stressed areas of the product, allowed the company to carry out its low price persona to the fullest. Ikea truly wanted to provide a quality product to its customers at a conveniently low price.
Ikea’s design battles
Ikea had low priced furniture but it was horribly designed. The furniture was not ascetically pleasing. Ikea’s design took a turn for the better. The company started to design more pieces that appeased the customer’s eye. It had proved challenging for the company to have a combination of form, functionality, and affordability (case citation). Ikea developed the “Democratic Design: Low Price with Meaning” vision statement. This statement outlined Ikea’s goal for the low priced, nice quality, and affordable furniture access to all.
Ikea’s customer shopping experience
Ikea’s perception of the ultimate shopping experience contributed heavily to its success. The setup of the store was to engage its customers, and create a convenient shopping environment. Customers were greeted to a 15,000 to 35,000 square meter warehouse of magic. Available at an Ikea location will be a childcare station, the variety of options and ideas, and a food court to create the ultimate shopping experience. The atmosphere was free and inviting to

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