Even as a young boy, Ingvar knew that he wanted to develop a business. At the time, it was the largest furniture display in Scandinavia. The first IKEA furniture catalog is published. For the customer, this means lower priced products and easy transportation home. The low end also consisted of smaller shops that offered cheap furniture to price-sensitive customers; many of these shops targeted college students and others on a tight budget. This benefits IKEA in its attempt to cut costs for its consumers.

Kamprad soon made the decision to discontinue all of the other products and focus directly on low-priced furniture, and the IKEA we know today was born. Nonetheless, the mass continues to enjoy shopping at IKEA due to the low prices and beautiful furniture. As for its American customer base, IKEA described its typical shopper as the sort of person who traveled abroad, liked taking risks, liked fine food and wine, had a frequent-flier plan, and was an early adopter of consumer technologies such as Walkmen, laptops, and cell phones. There was a separate matrix for each product type IKEA sold—that is, a price matrix for sofas, a price matrix for kitchen tables, and so on. Scandinavian designs, cost efficiency, and product strategy i. You have to recommend business unit level recommendations. September to August

harvard business case study ikea invades america

Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops. Because of this, while IKEA enjoyed much early success, its low-priced furniture was functional at best, ugly at worst. What factors account for the success of IKEA?

IKEA Invades America Case Study Analysis & Solution

About the Author Youngme Moon. Add this document to collection s.

harvard business case study ikea invades america

Ultimately, this would lead to innovative design and improved function at lower prices. Our designers work with manufacturers to find smart ways to make furniture using existing production processes. Trial and research tanks.


You have to be able to copy our Scandinavian design, which is not easy without a Scandinavian heritage. Gypsy Jazz Invades Ame Be very hatvard with this process as rushing through it leads to missing key details.

IKEA Invades America [10 Steps] Case Study Analysis & Solution

Brushing up HBR fundamentals will provide a strong base for investigative dtudy. It requires a different approach. But despite its remarkable early success, Uber is an extremely polarizing company. Do you think IKEA is being overly optimistic in its growth plan? These changes, if made, will provide the company with comprehensive reports on which products are missing in accordance with its competitors in addition to the gaps in price points Moon, This was obvious from the very first day we took the legs off a smerica and put it in a car.

What are some of these downsides? To increase customer satisfaction, ikew company is dtudy a plan that would increase the amount of labor in the stores and theoretically increase speed-of-service.

Neither do they want to be left with no choice other than to assemble furniture with complicated instructions alone. It was not unusual for IKEA to redesign a product multiple times, with a single purpose in mind: The company’s goal is to have 50 stores in operation stuyd the United States by My case study strategy involves – Marking out the protagonist and key players in the case study from the very start.

Being transparent with who their suppliers are, where items are sourced, and the labor conditions of its employees will give IKEA a competitive edge and ultimately lead to an attractive value proposition for American consumers.


And you have to be able to copy our interior competence—the way we set out our stores and catalogues. Changing the Way the World Moves Youngme Moon InUber is building what may be the largest point-to-point transportation network of its kind; it is literally changing the way the world moves. In what other ways should the company consider changing its product lineup? If customers preferred to shop without their children, they could drop their kids off at the company-operated childcare facility on the way into the store.

Technology and Operations Management. To manufacture beautiful, durable furniture at low prices is not so easy. You can add this document to your study collection s Sign in Available only to authorized users. The IKEA business idea is to offer a wide range of home furnishings with good design and function at prices so low that as many people as possible will be able to afford them.

IKEA Invades America – Case – Harvard Business School

The scope of the recommendations invadees be limited to the particular unit but you have to take care of the fact that your recommendations are don’t directly contradict the company’s overall strategy. The two pieces would only come together in the store, when a consumer would select each piece individually.

harvard business case study ikea invades america

Changing the Way the World Moves B. This is certainly true for Uber and is one of the key tensions in the case: