Essay about Ikea Case Study

Words: 1072
Pages: 5
Open Document
IKEA Case Study

IKEA Case Study

The founder of IKEA, Ingvar Kamprad, established the IKEA brand in Sweden when he was only 17 years old. It was 1943, and the IKEA brand started its enterprise journey by selling items such as seeds from Kamprad’s family’s farm and Christmas magazines. By 1948, the IKEA furniture line came to life. Kamprad’s concept was “good furniture could be priced so that the man with that flat wallet would make a place for it in his spending and could afford it” (Hill, 2013). Today, IKEA is one of the world’s largest furniture retailers. This essay will discuss the legal, cultural, and ethical challenges that confront IKEA; determine the various roles that the host …show more content…
In 1982, Kamprad transferred his interest in IKEA, “to a Dutchbased charitable foundation, Stichting Ingka Foundation. This is a tax-exempt, nonprofit entity that in turn owns Ingka Holding, a private Dutch firm that is the legal owner of IKEA” (Hill, 2013). To escape the Swedish high taxes, Kamprad moved to Switzerland in the 1980’s, which is where he remains.
Strategic and Operational Challenges Young, middle-class consumers are the target market for the IKEA product line. Global managers faced several strategic and operational challenges. IKEA set up locations so that consumers could come to visit and see what their furniture looked like assembled. This method became and important sales tactic to them. They added car roof racks to their product line so that customers could purchase products while there and transport it home loaded on top, packaged flat. As IKEA branched out internationally, they realized that their product line would need to be offered to fit the need of consumers in different countries. For American consumers, IKEA’s European-style products were not the standard sizes that Americans were used to. “American sheets did not fit on IKEA beds. Sofas were not big enough, wardrobe drawers were not deep enough, glasses were too small, curtains too short, and kitchens did not fit U.S. size appliances” (Hill, 2013). IKEA redesigned products to fit American’s needs. To help with the cost with both
Show More

Related Documents: Essay about Ikea Case Study

ikea case study Essay

authors discuss IKEA and their design and pricing practices. Describe IKEA's process for developing a new product and how it would be similar/different from how you might do it, if you were in charge. Please use at least two peer-reviewed journal articles to support your thoughts and then respond to two other learners about their ideas.` Ikea corporate mantra is “Low Price with meaning”. Cost or Price is one of competitive advantage to form a competitive position in market. IKEA mantra incudes…

Words 973 - Pages 4

Ikea Case Study Essay example

Issue: The chief concern for IKEA is how to continue its aggressive growth strategy in the US (50 stores by 2013) while trying to avoid becoming just another furniture store. Situational Analysis: The most important external factor impacting IKEA is its relationships with suppliers. When the company first started out an was being boycotted, they reached out internationally to find high quality at low cost. This enabled them to create a nearly pure competitive supply market that continues to thrive…

Words 646 - Pages 3

Strategic Management: Ikea Case Study Essay

‘Strategic Management’ is a very complex term as many eminent researchers and scholars have had different views and conclusions on strategy. According to White (2004), “Strategic Management involves both systematically developing an idea together with its implications and testing the empirical validity & usefulness of that idea against the real world.” Thus strategy is not only about planning for future but also about confirming the validity of the hypothesis considered and implementing it successfully…

Words 3341 - Pages 14

Ikea Csr Essay

| | | | | IKEAMGT301 CSR Case Study Report | | Table of Contents Executive Summary 1 Introduction 2 Company History and Overview 3 Vision, Objective and Values 4 Meaning of Sustainability to IKEA 5 CSR Issues and Criticism 6 Why IKEA sought to address the issues through CSR 12 How IKEA sought to address the issues through CSR 13 The Natural Step 15 Public Response 17 Cultural Change Within IKEA 18 Evaluation of the Strategic Element of IKEA’s CSR Practice…

Words 4895 - Pages 20

Ikea Global Retailer Essay

AN UNDERSTANDING OF THE COMPLEX PROCESS OF CULTURE BUILDING IN AN ORGANIZATION AND ACROSS BORDERS – USING THE EXAMPLE OF IKEA BACHELOR THESIS Authors: Emilie Martens (19860203) Tobias Mauelshagen (19810623) Course: IBO 348 – VT 2007 Examiner and Tutor: Richard Nakamura Växjö universitet Ekonomihögskolan 31st of May 2007 ABSTRACT i Abstract Nowadays, companies face many difficulties due to the much competitive environment they have to evolve in. Therefore, multinational ones…

Words 17539 - Pages 71

Essay Ikea Way

key to great human resource management. IKEA was one of the largest furniture manufacturers and retailers in the world, with operations in 32 countries (in early 2005). The company was well known for its stylish and innovative designs. It was the pioneer of furniture that could be dismantled and packed flat, to allow ease of transportation. IKEA's main strength was its committed workforce, which was often the source of the company's innovative concepts. IKEA adopted a positive approach toward human…

Words 3203 - Pages 13

Essay on Ikea - Business Ethics

IKEA in Russia - Ethical Dilemmas Lusine Demirjian Business Ehics I-Executive Summary IKEA is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. IKEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. IKEA was developed by…

Words 1855 - Pages 8

Student Name Essay

the essay presents the company’s background and the main marketing strategy. Then it illustrates the target market segmentation not only in China, but also in US. Facing the different countries ‘conditions, IKEA adapts the appropriate tactics. Besides, the essay highlights the way that IKEA initially take the joint venture strategy, and then makes the transition to the Greenfield investment. On the basis of this main theory, the essay maintains how the strategy is formulated and implemented, which…

Words 2629 - Pages 11

Essay on IKEA Marketing Analysis Final Version

Delivering the Value Case Study Analysis Renée Williams Marketing Management – MKTG – 522-2776 DeVry University, Keller Graduate School of Management February 8, 2015 Table of contents Delivering the Value Case Study Analysis 1 1.0 Introduction 3 2.0 Brief Description of IKEA 4 3.0 Industry Analysis & Industry Trends 5 3.1 Environmental Impact 7 3.1.1. Economic 7 3.1.2. Social 7 3.1.3. Technological 7 3.1.4. Legal 8 3.1.5. Political 8 3.1.6. Environmental 8 3.1.7. SWOT ANALYSIS…

Words 3918 - Pages 16

Swot Analysis Of Ikea

Corporate Strategy- Text & Cases. 5thEdition.Harlow:Pearson Education Ltd. *Institute of Chartered Accountants, Ghana (2010).ICAG Study Text: Corporate Strategy and Governance. Accra: Black Mask Ltd * Porter, M. (1980). Competitive Strategy: Techniques for Analysing Industries and Companies. New York: Free Press. *Andersson, U., 1997, Subsidiary Network Embeddedness. Integration, Control and Influence in theMultinational Corporation, Doctoral Thesis, Department of Business Studies, Uppsala University…

Words 875 - Pages 4