Ikea’s Global Sourcing Challenge: Indian Rugs and Child Labor
IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor
Jordan de Jong
Case Study _
The case I will analyze and discuss in this case study is “IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor”. I will begin with the vision, values, and strategy of IKEA and an internal analysis of the issues that they have faced as of the time of the case. Next, I will detail the issues IKEA faced in the years prior to the Indian rugs and child labor challenge. Then I will describe the Indian rug and child labor problem that IKEA faced and the management issues surrounding it. Following a description of the issues I will describe the strategies that I believe IKEA management can use to overcome the challenges. Finally, I will conclude with what IKEA did choose to do and the results. The IKEA story begins with the founder Ingvar Kamprad and a dream to provide people with necessary goods. He began selling various items via mail order as IKEA in 1943. In 1948 IKEA started to sell furniture and the company as we know it today started to take shape. In 1951 IKEA published their first catalogue to draw a picture for customers as to how the products would look in their homes. This was followed by IKEA beginning to design their own furniture in 1995 and opening the first store in 1958. The store was Stockholm but not in the traditional down town area but instead in the suburbs where ample customer parking and more floor space allowed IKEA to display their products in a new style. By 1956 IKEA had started using the “flat pack” technique, selling furniture in flat boxes with assembly required by the customer, and began sourcing furniture outside of Sweden. IKEA’s success via non-traditional techniques was not popular with other furniture dealers in Sweden.
Jordan de Jong
Case Study _
The case I will analyze and discuss in this case study is “IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor”. I will begin with the vision, values, and strategy of IKEA and an internal analysis of the issues that they have faced as of the time of the case. Next, I will detail the issues IKEA faced in the years prior to the Indian rugs and child labor challenge. Then I will describe the Indian rug and child labor problem that IKEA faced and the management issues surrounding it. Following a description of the issues I will describe the strategies that I believe IKEA management can use to overcome the challenges. Finally, I will conclude with what IKEA did choose to do and the results. The IKEA story begins with the founder Ingvar Kamprad and a dream to provide people with necessary goods. He began selling various items via mail order as IKEA in 1943. In 1948 IKEA started to sell furniture and the company as we know it today started to take shape. In 1951 IKEA published their first catalogue to draw a picture for customers as to how the products would look in their homes. This was followed by IKEA beginning to design their own furniture in 1995 and opening the first store in 1958. The store was Stockholm but not in the traditional down town area but instead in the suburbs where ample customer parking and more floor space allowed IKEA to display their products in a new style. By 1956 IKEA had started using the “flat pack” technique, selling furniture in flat boxes with assembly required by the customer, and began sourcing furniture outside of Sweden. IKEA’s success via non-traditional techniques was not popular with other furniture dealers in Sweden.