IKEA

IKEA

Abstract

IKEA has not only successfully captured the furniture market in Sweden but also in other countries. IKEA confronted diverse challenges when expanding its operations internationally. There are diverse sources of IKEA's successful entry in international markets. One of these sources is the cost-conscious approach of IKEA. In every market, the company has attracted its customers by offering a lower price than most of its competitions. In addition to this, the self-service concept of IKEA has also gained customers' attention. The leadership has also played a significant role in the success of IKEA. The role of Ingvar Kamprad in the success of IKEA cannot be ignored. The vision of Ingvar Kamprad has shaped the values of IKEA. Ingvar Kamprad's concept of production flexibility has proved to be very effective for the company.

Table of Contents

Sources of IKEA in the Furniture Retailing in Sweden1

Importance of internationalization to IKEA1

Challenges Confronted by IKEA when Expanding Internationally2

Overcoming Challenges2

Control and Coordination of Europe-wide Operations3

The Role of Ingvar Kamprad in the Development of IKEA3

Challenges that lie ahead for IKEA and Recommendations for Anders Moberg4

IKEA

Sources of IKEA in the Furniture Retailing in Sweden

The successful entry of IKEA in the furniture retail marketing in Sweden is a great achievement. There were diverse sources that enabled IKEA to enter successfully into the market (Johnson, 2008). One of these sources is the adoption of the differentiation strategy.

The company preferred a cost-conscious approach to conduct the business (Hartline and Ferrell, 2010). This approach enabled the company offer a lower price for most of its products. The products of IKEA had excellent design and functionality. These products were offered at an affordable price. Further, the company targeted a new market. The target market of IKEA is composed of young buyers who want to furnish their house in a different manner. The self-service concept of IKEA was also a source of successful entry in the furniture retail market in Sweden.

Importance of internationalization to IKEA

IKEA made the decision to expand internationally in 1970s. Internationalization was important to IKEA because the growth in the Swedish market had become stagnant. The saturation of the market was another reason that made internationalization important to IKEA. Internationalization was also important to IKEA because the company wanted to continue its market expansion.

Challenges Confronted by IKEA when Expanding Internationally

IKEA confronted diverse challenges while expanding internationally. The 1973 oil shock was one of these challenges. There is no denying the fact ...