IKEA vision “To create a better everyday life for the many people” truly reflects corporate
philosophy of this value-driven company with a passion for life at home. Started by 1st
generation entrepreneur Ingvar Kamprad , In 2002 IKEA was world’s top furniture retailer
with 286 million customer, $12 Billion sales and 154 stores in 22 countries. Even though
IKEA was founded in 1943 , the self service store journey started in 1965 and by 2002 IKEA
became the world’s most prominent retailer. IKEA core culture of cost cutting sensitivity,
reduction of wastage has remained consistent over the years which has been exhibited over
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This matrix was different for each products.
This matrix helped identified the products retail price . The company worked with 1800
suppliers across 50 countries. The company’s different units and entire operations focused
on Quality products at low prices.
Changes in consumer taste and preference -Over the years IKEA refined its product design,
retail approach to suit its consumers.
Globalization vs. Localization – In order to remain competitive and achieve market share in
newer geography IKEA needs to understand the local market and change marketing mix
according to local consumer lifestyle & preference.
The furniture market was widely divided between low end, high end , single brand and
multiple brand retailers with increasing competition with Walmart, Ethan Allen,
Thomasville, Jordan furniture and other global and local players.
The company discovered that its products were not suited for the American lifestyle.
However the company addressed different problems based on consumer feedback and
market research. The company besides understanding and working on consumer needs
made changes in product and launched a high profile advertising campaign .
Shopping at IKEA required basic preparation by the consumer. A typical store was a self
service having childcare facility, restaurant, sales assistant, self serve trolleys.
IKEA needs to constantly evaluate its business sustainability & be a socially responsible
corporate giving back to the society.