SYNOPSIS OF CASE STUDY
Established in 1940 by Ingvar Kamprad Only offered products which were ‘typically Swedish’ design This strategy initially worked in few countries Major sales were being made in Western Europe and Germany In 1997, IKEA planned to expand into Asia IKEA has 2400 firms in almost 65 countries
IKEA reaps huge economies of scale and selling same products all over the world Between 1985-1990 IKEA launched 26 stores in North America Things didn’t go the same way in North America The Swedish designs didn’t match the American tastes and living patterns In 1991, IKEA then decided to customize the products according to the North Americans taste Sales in North America increased by 30-40 percent By 1997, one-third of IKEA's total product offerings were designed exclusively for the US market Sales was $900 million in North America in 1997
CASE STUDY UPDATED
Grown in China, Russia, America, Germany Profits reinvested in e-commerce, better services, inspiring products US total sales grew by 11% IKEA also remodeled in the marketplaces to bring in a pleasant shopping experience to the customers People now accept IKEA as the leader in home furnishing
IKEA started its retail operations in China
With Joint ventures they tested the market and changed their strategies according to the lifestyle Store layouts reflected the typical sizes of apartments Local sourcing of materials to meet the prices according to China After entering China, IKEA used the social media Adjustment of location to the outskirts so that people could reach the store with the help of road and rail services Measures taken to be eco-friendly
QUESTIONS
Why did IKEA initially fail in North America? What were the strategies adopted by IKEA globally?
doc_267413615.pptx
Established in 1940 by Ingvar Kamprad Only offered products which were ‘typically Swedish’ design This strategy initially worked in few countries Major sales were being made in Western Europe and Germany In 1997, IKEA planned to expand into Asia IKEA has 2400 firms in almost 65 countries
IKEA reaps huge economies of scale and selling same products all over the world Between 1985-1990 IKEA launched 26 stores in North America Things didn’t go the same way in North America The Swedish designs didn’t match the American tastes and living patterns In 1991, IKEA then decided to customize the products according to the North Americans taste Sales in North America increased by 30-40 percent By 1997, one-third of IKEA's total product offerings were designed exclusively for the US market Sales was $900 million in North America in 1997
CASE STUDY UPDATED
Grown in China, Russia, America, Germany Profits reinvested in e-commerce, better services, inspiring products US total sales grew by 11% IKEA also remodeled in the marketplaces to bring in a pleasant shopping experience to the customers People now accept IKEA as the leader in home furnishing
IKEA started its retail operations in China
With Joint ventures they tested the market and changed their strategies according to the lifestyle Store layouts reflected the typical sizes of apartments Local sourcing of materials to meet the prices according to China After entering China, IKEA used the social media Adjustment of location to the outskirts so that people could reach the store with the help of road and rail services Measures taken to be eco-friendly
QUESTIONS
Why did IKEA initially fail in North America? What were the strategies adopted by IKEA globally?
doc_267413615.pptx