Ikea Case Study

History and StrategyIKEA is a Swedish company that produces lowly satisfactory menage furnishing and accessories. The company was founded in 1943 by Ingvar Kamprad as a mail order catalog in 1954 to a institution bloodline in 1951. IKEA later dumped the idea of being a mail order catalog and started developing stocks their modern macrocosm in stores today in the early 1950. They had grown enormously from 2 stores in 1964 to 114 stores in 1994 in 26 countries (Exhibit 1). The ca-ca that lead to IKEAs success is the result of its founders opening store in 1951 to allow customers to inspect products before spoiling them, habituate a catalog to tempt people to visit an exhibition. Its chronicle feature of providing self-assembled furniture starting from 1953 significantly cut transportation system of title and storage costs. Kamprad had noticed the oligopoly of furniture makers that kept prices high. He stated, A disproportionately large part of all resources is employ to pander a small part of the population IKEAs blueprint is to change this situation. We shall offer a wide footslog of hearth furnishing items of good design and function at prices so low the majority of people can afford to buy them we meet great ambitions. Kamprad viewed the situation as both a condescension opportunity and a social problem.

He defective a cost saving strategy by sell pieces that requires home assembly and self transportation. The savings were passed to the consumer in lower prices and highly- genuine a low cost strategy. Due to the find out of competitors IKEA developed its own add up chain by convincing grind owner! s to develop IKEA brand furniture epoch their factories would otherwise be idle due to the seasonal debar downs. This was done in countries where labor costs were lower and in a coalition or relationship that involved not only supply contracts and technology transfers but also loans at reasonable judge that were paid back by prox shipments of goods. This solved force problems for suppliers and gave IKEA discounted items that...If you want to get a overflowing essay, order it on our website: OrderCustomPaper.com

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