IKEA: Managing Global Expansion
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTA068 |
Electronic Format: Rs.
300;
Courier (within India):Rs. 25 Extra
Themes- |
| Case Length |
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13 Pages |
| Period |
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2003 |
| Organization |
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IKEA |
| Pub Date |
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2003 |
| Teaching Note |
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Not Available |
| Countries
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Scandinavia |
| Industry |
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Consumer Durables |
Abstract:
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In 2002, IKEA was one of the leading furniture retailers in the world. IKEA
offered a range of items - furniture, cookware, tableware, kitchen utensils,
gadgets, textiles, bedding, cushions, shower curtains and paint. IKEA had
emerged as a global player in one of the most highly fragmented industries in
the world. In 2002, Interbrand ranked IKEA 44th on its list of the top 100
global brands, ahead of Pepsi and Harley Davidson. IKEA's business formula had
been built around high-quality, Scandinavian design, global sourcing of
components and knock-down furniture kits that customers transported and
assembled themselves. IKEA's cost leadership strategy had enabled it to pass on
to customers lower prices, anywhere from 25% to 50% below those of its
competitors.
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The case explains how a new business model can change the rules of the game even in a traditional industry.
Contents:
Keywords:
Case study of IKEA, Furniture retailer, Low cost leadership,
Furniture at IKEA, Cookware at IKEA, Kitchen utensils at IKEA, Textiles at IKEA,
Case study of leadership, Management, Furniture hall, Ingvar Kamprad, Furniture
information, Fragmented industry
IKEA: Managing Global Expansion
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