For example, it was not uncommon for these retailers to carry six to 10 styles of a given product type e. After refreshing your mind, read your case study solution critically. This was obvious from the very first day we took the legs off a table and put it in a car. Although design was handled in-house, IKEA would once again use internal competition to select a designer. Neither do they want to be left with no choice other than to assemble furniture with complicated instructions alone. By opening the warehouse and letting people serve themselves, an important part of the IKEA concept was born.

To reassure customers that the furniture they were buying would last a lifetime. Although this helps in lowering the ticket price of the products, consumers sometimes do not have the space to take home bulky packages. The difficulty is when you try to create the totality of what we have. Changing the Way the World Moves. The success created huge capacity problems in serving the customers. This could mean an exclusive line of fur rugs for the colder regions or collaboration with local artists resulting in a line of paintings, bedding, etc. Do you agree with the matrix approach described in Figure B of the case?

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template.

IKEA Invades America by David Bechard on Prezi

If too much is altered, misunderstandings and lack of cohesion may take place within the company. To order copies or request permission to reproduce materials, callwrite Harvard Business School Publishing, Boston, MAor go to http: The furniture showroom is opened in Almhult. For example you can recommend a low cost strategy but the company core competency is design differentiation. Changing the Way the World Moves Most of the time, beautifully designed home harvardd are created for a small part of the population—the few who can afford them.


What are some of these downsides? And if they needed assistance with shopping, they could stop by a sales desk and speak to an IKEA representative. After refreshing your mind, read your case study solution critically. Furniture is introduced ukea the IKEA product range.

As simple as the matrix seems, it works. There are three main factors that account for its continual success in the furniture retailing industry: By opening the warehouse and letting people serve themselves, an important part of the IKEA concept was born.

harvard business case study ikea invades america

Scandinavian design is what makes us unique. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives – Detailed understanding of the case, Clarity of HBR case study fundamentals, Analyzed case details based on those fundamentals and Developed an ability to prioritize recommendations based on probability of their successful implementation.

The scope of the recommendations will 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. 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.

Scandinavian designs, cost efficiency, and product strategy i. You can do business case study analysis by following Fern Fort University step by step instructions – Company history is provided in the first half of the case.

harvard business case study ikea invades america

Each type of merchandise had its own matrix and this allowed IKEA to identify product gaps within the lineup Moon, The company estimated that its transport volume was six times more with these innovative flatter packages Moon, 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.


To manufacture beautiful, durable furniture at low prices is not so easy. 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.

It was not uncommon for a single wooden product to contain as many as five different parts of the tree. 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.

This is certainly true for Uber and is one of the key tensions in the case: 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. About the Author Youngme Moon. IKEA Invades America selection; many stores also offered interior design services for consumers interested in a more complete home makeover.

harvard business case study ikea invades america

We have to find a balance. 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.

The first IKEA furniture catalog is published.

IKEA Invades America Case Study Analysis & Solution

People who want to improve their homes and create better everyday lives. There were several reasons for IKEA to start designing its own furniture. Many competitors could try to copy one or two of these things.