The case study is to discuss about the different strategy used by IKEA to approach their customers. It is also talking about the localization concept from a global company based on the cultural demand from different countries worldwide. IKEA is also famous for their less expensive furniture, has some other strategies to “reach” the customers based on their needs. 4 Ps concept plays a very important role on IKEA’s success besides the way of shopping which is differ from all other their competitor.
At the age of five Ingvar Kamprad starts selling matches to his next door neighbors and by the time he is seven, he starts selling to further neighborhood, using his bicycle. He buy matches in huge numbers cheap and re-sell them individually at a very low price but still make a good profit. From selling matches he expands to selling flower seeds, greeting cards, Christmas tree decorations, and later pencils and ball-point pens.
The roots of a furniture dealer, Ingvar Kamprad is entrepreneurial in developing IKEA into a furniture retailer. This period sees the exploration of furniture design, self assembly, advertising, the use of a catalogue and a showroom to reach the many people.
The IKEA concept starts to take place. New IKEA stores opened and hero products are developed such as POÄNG, KLIPPAN and BILLY bookcase. It is a time where concept takes shape and is documented in Ingvar Kamprad's The Testament of a Furniture Dealer.
IKEA expands dramatically into new markets such as USA, Italy, France and the UK. More IKEA classics arrive such as LACK and MOMENT. IKEA begins to take the form of today's modern IKEA.
IKEA grows more by introducing Children's IKEA and the focus is on home furnishing solutions to meet the needs of families with children. The IKEA Group is formed and responsibility for people and the environment is seen as a prerequisite for doing good business.
IKEA expands into new markets such as Japan and Russia. Everything for the bedroom and kitchen is explored and presented in coordinated furnishing solutions. This period also sees the successes of several partnerships regarding social and environmental projects.
IKEA’s Vision and Business Idea
IKEA’s vision is to create a better everyday life for the many people. Their business idea supports this vision by offering 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’s mission: People have very thin wallet. We should take care of their interests.
IKEA’s Product RangeIngvar Kamprad
The IKEA product range focuses on good design and function at a low price. It offers home furnishing solutions for every room in the home. It has something for the romantic at heart, the minimalist and everyone in between. It is coordinated so that no matter which style you prefer our designers and product developers work hard to ensure that our products meet your day-to-day needs and eliminates the unnecessary.
IKEA’s Low Prices
Low prices are the cornerstone of the IKEA vision and our business idea. The basic thinking behind all IKEA products is that low prices make well-designed, functional home furnishings available to everyone. We are constantly trying to do everything a little better, a little simpler, more efficiently and always cost-effectively.
A better everyday life
We have taken the straightforward approach to the furniture business, by starting with developing furniture with the price tag in mind. This is the IKEA way, to maximize the use of raw materials in order to fulfill people's needs and preferences by offering quality products at an affordable price.
Social & Environmental Responsibility
In 2004, IKEA published their first Social and Environmental Responsibility report. IKEA believes good society is good for...