IKEA still operates under the same vision and business idea: “To create a better everyday life for the many people. Our business idea 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” (IKEA, 2014). Currently, they are focusing on sustainable growth through three growth areas: quality products at low prices, having a positive impact on both people and the planet, and personal growth of their employees (IKEA, 2014). The IKEA Groups total sales in 2013 were EUR 27 billion (IKEA, 2014). They now have 298 stores in 26 countries, including 49 stores in North America (IKEA, 2014). Stichting INGKA Foundation is still the owner of The IKEA
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In that sense, I would say value has played the largest role in IKEA’s popularity. The value associated with IKEA has kept the company profitable opposed to its struggling competition (Ferrell & Hartline, 2011). Even with a slower economy, IKEA’s sales have slowly increased (Ferrell & Hartline, 2011). The do-it-yourself approach is also an important aspect to their low-cost business model (Ferrell & Hartline, 2011). With the DYI approach, not only do customers feel like they are getting a good value but also a sense of accomplishment by completing a project (Ferrell & Hartline, 2011).
IKEA’s image as a furniture-shopping destination has added to some of their cachet. As someone who has driven two hours to spend the day at an IKEA, I was moved by their brand image to go experience everything the store has to offer. The stores are huge showrooms that showcase the products in the typical setting that they would be used. They are setup in a way that you can see all of the products offered. After going to IKEA, I understand how the brick-and-mortar stores have been so successful for them. However, a two-hour drive, day trip is not convenient for most consumers. IKEA has already made the effort to provide online purchases, and I believe they will need to rely heavily on those services in the future to remain relevant. By focusing advertising efforts on their online presence, they can change consumer’s views that IKEA is only a brick-and-mortar