Case Study: IKEA Invades America Eunice Hurh University of North Texas

Jun 17th, 2015
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1. What factors account for the success of IKEA? a. There are three main factors that account for its continual success in the furniture retailing industry: Scandinavian designs, cost efficiency, and product strategy i. Scandinavian heritage is showcased beautifully through IKEA’s simple yet unique designs. In the early years, IKEA’s designs were functional at best, ugly at worst (Moon, 2004). Now, due to a deliberate focus on adapting a more design aesthetic (Moon, 2004),

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Case Study: IKEA Invades AmericaEunice HurhUniversity of North TexasCase Study: IKEA Invades America1. What factors account for the success of IKEA?a. There are three main factors that account for its continual success in the furniture retailing industry: Scandinavian designs, cost efficiency, and product strategyi. Scandinavian heritage is showcased beautifully through IKEAs simple yet unique designs. In the early years, IKEAs designs were functional at best, ugly at worst (Moon, 2004). Now, due to a deliberate focus on adapting a more design aesthetic (Moon, 2004), consumers began appreciating IKEAs furniture for the appeal instead of its functionality. Ingvar Kamprads Scandinavian culture is something that cannot be easily copied, as one must be from Scandinavia to fully embrace its aesthetic (Moon, 2004). Moreover, Ingvar was able to create relationships with local manufacturers in the forests close to his Scandinavian home (Moon, 2004). It was quite possible for IKEAs success story to fall apart if not for the close proximity of those manufacturers in Scandinavia. Also, IKEAs Low price with meaning slogan accelerated consumers to believe these designs were not cheaply made (Moon, 2004). And as Ingvar said, Scandinavian design is what makes [IKEA] unique, (Moon, 2004).ii. The most important factor in IKEAs cost efficiency plan is its flat packaging. In 1956, IKEA began testing flat packaging for tables and legs (Moon, 200

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