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Ikea Case Study

IKEA CASE STUDY

INTRO * ABOUT THE COMPANY

- Catchphrase: You do a little. We do a little. And together we save a lot.
- 2005: #42 Top global brands // #3 global brand with most impact 04 // #1 in Europe and Africa
- Keys of success: experience + differentiation + cost leadership
- Product: furniture + utility items (e.g. utensils, hooks, clips etc)
- Targetgroup: global middle class with shared buying habits
- 226 stores // markets: EU, Africa, Asia, US (max. 10% market share in each market)
- 04-05 revenue of $17.9 billion (15% increase to 03-04)
- Although ms of max 10% successful-> public awareness (“awareness of our brand is much bigger than the size of our company”)
- Image: Sells lifestyle- good taste + recognition of value
- Founded in 1943 by Ingvar Kamprad in Sweden, 1951 focus on furniture with catalogue and furniture shop, 1958 first furniture store with showroom, 1956 launch of flat pack furniture with savings passed to costumers, over the years more and more innovative products with own names, 1963 expanded overseas (1.Norway later Denmark & Switzerland), 50s-60s Outsourcing to Poland,
- Use of worldwide subcontracted manufacturers, all R&D activities in Sweden
- Lots of investment in R&D with designers and freelancer continuously working on invention of stylish but affordable products
- Aim: reduce prices by an average of 2-3% each year across all products
- 1985: Entering US market with “MOMENT” Sofa by using knowledge of a supermarket trolley factory
- 1997: Introduction of Children´s IKEA
 2005 $17.9 billion company // 84.000 co-workers, 44 countries, 4 continents

BUILDING THE BRAND

Founder’s vision

- vision & thoughts of Kamprad deeply rooted in IKEA culture founded on respect for money and innovative mindset.
- His habits made him credible and attitude trickled down to co-workers, ensure minimal wastage + cost cutting at every level
- Company believing in social equality
- Kamprad´s philosophy: “We have decided...