Ikea Case Study Essay examples

1827 Words Jan 28th, 2013 8 Pages
IKEA
Executive Summary
Founded in 1943 by entrepreneur Ingvar Kamprad, IKEA first began with sales of inexpensive products such as pens, watches, and jewelry. Soon after, IKEA started selling furniture and published a catalog in 1951. With its Scandinavian and contemporary style, IKEA's business model of furnishing simplicity and do it yourself furniture has taken the company from a catalog based company to a multimillion dollar company. The company has grown to over 253 outlet stores in 37 countries and making itself known as a global brand of do it yourself furnishings at a lower cost than most furniture retailers
Marketing strategies
IKEA’s success is based on principal marketing strategies that remain the same throughout the
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The IKEA vision is “To create a better everyday life for the many people.” The priorities lie within the business idea, which is “To offer a wide range of well designed, functional home.
Furnishing products at prices so low that as many people as possible will be able to afford them." This is the framework that builds the entire IKEA brand. The IKEA brand is well established and successful. Focusing on people who live in metropolitan areas with smaller sized apartments is an effective way to successfully penetrate a new market.
IKEA can also target those who are considered to be transient. People who are constantly on the move are not looking for high priced furniture that is bulky and hard to pack up. Ikeas model of do it yourself furniture works very well in the reversal process. Those who are always on the move can take the furniture into smaller parts and load it in their vehicle and move.
Having a one-size fits all model is too narrow; with minor modifications to their product lines can aid in penetrating a wider market. For example some Americans love the simplicity of IKEA's furniture's but the dresser drawers may be too small and shallow for storage of sweaters and other clothing articles.
Low price is most likely the strongest priority but to achieve the low cost, IKEA has to focus on numerous other priorities, such as function and the “right” quality. IKEA should be able to keep that commitment

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