If they got hungry, they could stop by the IKEA restaurant for a lunch break. With respect to case goods, salespeople were trained to educate consumers about quality markers such as grains of wood, construction techniques, and so on. Uber’s innovative business model is outpacing many of the laws regulating its industry, and while it is going to take the regulatory system some time to catch up, Uber doesn’t appear to be willing to wait. For the first time customers could see and touch our furnishings before ordering. Step 8 -Implementation Framework The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. This seemingly elementary product strategy implemented by IKEA has proven to show massive amounts of revenue due to its high level of success.

Do you agree with this idea? Within this market, there was a wide dichotomy between low-end and high-end retailers. In order to achieve the growth of 50 stores by , IKEA should not stray too far from its original product strategy plan. Specialty retailers also competed heavily on quality and service. Begin slowly – underline the details and sketch out the business case study description map. In all of the low-end channels, sales assistance tended to be poor to nonexistent, and product selections tended to be limited to utilitarian furniture that was either dull or altogether unattractive. This document is used with permission and is available to Rebecca Halloran, in the course:

Focus on the following – Zero down on the central problem and two to five related problems in the ikes study. From the beginning, IKEA has taken a different path. Because the specialty retailers competed heavily on selection, they tended to boast of huge inventories; even the single-brand stores carried dozens of different styles.

IKEA Invades America Case Study Analysis & Solution

American consumers want to know that they are not only getting a great deal, but that they are purchasing from a amerca they can trust. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops. Although that might seem like disturbing imagery, it is meant to illustrate how this idea could truly initiate monumental revenue for IKEA as well as easier access for its consumers.


In order to achieve the growth of 50 stores byIKEA should not stray too far from its original product strategy plan.

harvard business case study ikea invades america

Do czse think IKEA is being overly optimistic in its growth plan? See Exhibit 8 for details. Brushing up HBR fundamentals will provide a strong base for investigative reading. In many ways, the stores resembled modern theme parks, with their childcare centers featuring large climbing structures and flamboyant playthings and their restaurants serving delicacies such as smoked salmon, Swedish meatballs, and lingonberry tarts.

harvard business case study ikea invades america

Take measurements of spaces you want to fill with furniture. We have decided to side with the many. For the customer, this means lower priced products and easy transportation home.

But despite its remarkable early success, Uber is an extremely polarizing company. Because of this, while IKEA enjoyed much early success, its low-priced furniture was functional at best, ugly at worst.

IKEA Invades America – Case – Harvard Business School

Its business model is highly disruptive, and while disruptive innovation can be a good thing, it is also true that disruptive companies tend to break things. What is a Business. There was invaeds separate matrix for each product type IKEA sold—that is, a price matrix for sofas, a price matrix for kitchen tables, and so on.

The company estimated that its transport volume was six times more with these innovative flatter packages Moon, Focus on the following. You have to be able to copy our Scandinavian design, which is not easy without a Scandinavian heritage.


harvard business case study ikea invades america

Add this document to saved. And if they needed assistance with shopping, they could stop by a sales desk and speak to an IKEA representative. It describes a slew of controversial incidents besetting the company in early If customers wished to purchase businesz items, they could jot down the item numbers; they then needed to pass through the IKEA warehouse to pick up their flat-packed items before proceeding to checkout.

What are some of these downsides? The gift was used to establish his own business. This seemingly elementary product strategy implemented by IKEA has proven to show massive amounts of revenue due to its high level of success.

IKEA Invades America

Neither do they want to be left with no choice other than to assemble furniture with complicated instructions alone. Explores various options for managing this growth strategy. 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, To save money on labor and production, the company was constantly on the lookout for opportunities to build supplier relationships in developing countries.

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.

You should try to understand not only the organization but also the industry which the business operates in. The low end included general discount retailers such as Wal-Mart, office supply stores such as Office Depot, and discount warehouses such as Costco.