Free Essay

Ikea Case

In:

Submitted By blaby
Words 2430
Pages 10
Método de Análisis de Casos de Ética Empresarial 1. ¿Cuál es el problema de ética empresarial que se presenta en el caso? El problema de ética empresarial en el caso de IKEA es de utilización de materia prima no amigable con el medio ambiente y con la salud de sus clientes, lo que provoco una caída en sus ventas. A raíz de nuevas leyes y exigencias de los clientes a cuestiones ambientales, IKEA decide generar mejores políticas de compra de sus productos para la venta en sus tiendas a nivel mundial. Uno de los principales dilemas éticos que de enfrenta la compañía es decidir si sigue expandiéndose debido al incremento de la demanda a nivel mundial, pero esta expansión trae consigo una mayor tala de árboles lo que contradice un poco al lema de la compañía el cual se basa en un cultura socialmente responsable. Y a pesar de que la compañía ha establecido políticas al respecto aun no puede decirse que IKEA utiliza en un 100% madera “protegida” en sus productos ya que muchos de sus proveedores aun no siguen las políticas “verdes” por asi llamarlo que poco a poco IKEA ha implementado a. ¿Cuál es el conflicto de valores y/o responsabilidades que existe? El dilema en el caso o conflicto era de seguir en el camino de comprar productos que sean peligrosos y causantes de enfermedades o crear una filosofía y responsabilidad ambiental en la empresa desde el proveedor, empleados y clientes. Además de la cuestión que se plantea al final del caso el cual IKEA sigue expandiéndose a nivel mundial pero dicha expansión contradice el lema de la compañía de ser una empresa ecológica ya que como su directivo establece a lo largo del texto IKEA no puede garantizar un 100% que la madera utilizada en sus productos provenga de bosques sustentables. b. ¿Quiénes son los “stakeholders” o implicados en el caso? Los implicados en el caso son el accionista principal Ingvar Kamprad y los directivos de la empresa. Ya que ellos son los que establecen las políticas de acción para que su compañía se considere altamente responsable de la naturaleza Y como implicados secundarios tenemos a los proveedores, clientes y gobierno ya que el primero de ellos debe de asegurarse de cumplir con las políticas de la compañía que le brinda trabajo y los segundos son los que pueden exigir que la empresa se responsabilicé por la tala de árboles necesarios para la elaboración de sus productos. Además está el gobierno que por medio de legislaciones puede verificar que la compañía utilice madera de bosques sustentables los cuales tratan de plantar la misma cantidad o si es necesario una mayor cantidad de árboles por aquellos que se han cortado para uso industrial c. ¿Cuáles son sus intereses?. Generar una cultura y filosofía ambiental en todo el entorno externo o interno de la empresa para ofrecer productos responsables con el medio ambiente y con la salud de los clientes, que a su vez se vea reflejado en la reducción de los costos de producción sin perder la calidad, incremento de las ventas y permanencia en el mercado. 2.- ¿Cuáles son las causas culturales, estructurales, estratégicas, etc. de este problema ético? Existen varias razones por las cuales se da este dilema ético. En cuanto a cultura, los consumidores empezaban a tener un cierto rechazo por algunos productos que no fueran amigables con la naturaleza, esto debido a su proveniencia. La materia prima principal de IKEA es la madera, la cual algunas veces venía de bosques protegidos. Aunado a las causas culturales, la principal causa estructural es que IKEA trata de contribuir e incentivar a sus proveedores que manejen cierto tipo de materia prima “permitida”, pero el problema principal es que sus proveedores son de países subdesarrollados, por lo cual la eficiencia no es su principal fortaleza, pero han trabajado establecer una conciencia en el tema. Para combatir con este problema ético, IKEA se ha dado a la tarea de crear diferentes programas para el uso correcto de desperdicio, la eficientización de procesos y establecimiento de estándares (IWAY) junto con 4SEA para proveedores.
3. ¿Cuál es la jerarquía de valores? ¿Por qué? A veces la teoría ética puede serle útil en decidir en esta jerarquía.

La jerarquía de valores de IKEA que fue identificada es la siguiente:

1) Respeto a la naturaleza 2) Perseverancia 3) Honestidad/Integridad 4) Humildad

Se identifica el respeto a la naturaleza como el principal valor ya que en el caso vemos muy claramente la dedicación por parte de IKEA en cuidar que la producción de sus muebles se haga de manera sustentable y que los materiales no sean tóxicos para el ambiente o para el consumidor. Este valor destaca por encima de los demás debido al gran número de ejemplos en el caso donde observamos a IKEA tomando medidas importantes para reducir su impacto negativo global en el medio ambiente. Ejemplos de estas actividades las podemos ver desde la formación del iWAY, small green steps, uso de energía alternativa en sus tiendas, y demás.

La perseverancia es el segundo valor más importante de IKEA ya que lo observamos en varias situaciones del caso. Uno de los primeros ejemplos de este valor lo podemos ver desde la creación de la empresa por Ingvar Kamprad. Cualquier persona puede reconocer que una empresa del tamaño de IKEA no se construye sin un gran esfuerzo y perseverancia. Otro ejemplo lo podemos ver en la dedicación de IKEA para sacar nuevos diseños que cumplan con todos los requisitos de modelo tal como: compactibilidad, materiales reciclables y no tóxicos, que tenga más de un uso, etc. También lo vemos en la tenacidad de IKEA en programar auditorias as sus proveedores para asegurarse que estén cumpliendo con los 17 estándares del iWAY.

La honestidad y la integridad son los siguientes valores más importantes que notamos en la jerarquía. Estos valores no dejan de ser clave y sin ellos la funcionalidad de cualquier organización quedaría en peligro pero los colocamos en tercer lugar ya que la perseverancia es claramente un valor que revoluciono a IKEA. En el caso podemos claramente observar los valores de honestidad e integridad de IKEA. Muchos de los clientes si valoran mucho el enfoque ambiental que IKEA le ha dado a su producción y el hecho que IKEA haga todo lo posible para cumplir con estos rubros muestra gran integridad y honestidad. IKEA reconoce que debe mantenerse integro en sus actividades de acopio de materia prima para mantener a sus clientes satisfechos.

Finalmente reconocemos al valor de la humildad como el último valor más importante de IKEA. Este lo podemos observar cuando IKEA es demandada por exceso de uso de formaldehido en la producción de sus libreros. Después de perder 20% de sus ventas en Dinamarca y el daño a su reputación, IKEA reconoció su error y tomo acciones proactivas para reparar el daño. También, IKEA ha recibido críticas ya que a veces madera proveniente de áreas protegidas es utilizada en la producción. IKEA muestra humildad al reconocer que las cantidades de madera que se utilizan son enormes y menciona que no es fácil rastrear cada pedazo por lo cual no puede completamente garantizar que toda la madera es proveniente de áreas no protegidas. 4.- ¿Cuáles son los principios que se desprenden del problema y que deben ser respetados al solucionar el caso?
Primero tenemos que identificar cual es el problema principal del caso. El gran éxito de IKEA ha causado que la empresa tenga que acopiar cada vez mas materias primas para mantener el ritmo de crecimiento en la producción de sus muebles. Debido a que la mayoría de estos son fabricados a partir de madera, IKEA ha tenido que incorporar medidas para cuidar que la tala de árboles en el mundo sea cada vez más sustentable. La realidad es que si la empresa sigue creciendo al mismo ritmo, analistas mencionan que para el 2010 tendría que acopiar lo doble en materias primas lo cual causaría impacto importante en la deforestación mundial. Parte de este problema cae en que IKEA fomenta el frecuente remplazo de sus muebles causando que mas arboles sean talados.

Los principios universales que se desprenden del problema y que deben de ser respetados para solucionar el caso son los siguientes:

El Derecho a la Vida

El derecho a la vida es uno de los principios más notables dentro del problema. La utilización de recursos naturales, en este caso los arboles, genera una cuestión muy importante debido a la importancia de este recurso para la vida en nuestro planeta. Si este recurso es utilizado de manera no sustentable, la reducción de este generará desbalances en el ecosistema mundial lo cual pondrá en peligro la vitalidad de todo ser vivo. En este caso, la sobre utilización de la madera es quizás el problema que más se adhiere a este principio pero no es el único. Otro problema ligado al principio de la vida es el de los materiales peligrosos. En el caso también vimos que la utilización de materiales peligrosos era un tema de gran importancia ya que pone en riesgo la salud del consumidor. Este problema puede ser resuelto más fácilmente que el anterior ya que IKEA puede encontrar materiales sin químicos peligrosos pero este no deja de formar parte al principio del derecho de la vida.

Solidaridad

Otro principio que se desprende del problema del caso es el principio de solidaridad el cual busca principalmente el bien común. En el caso nos es claro que IKEA es una empresa que busca solidaridad ya que logra producir un bien que la gente le gusta comprar para crecer como empresa mientras que cuidan los métodos de producción para asegurar que el medio ambiente no se vea afectado por ellos. Así es como ha venido operado IKEA pero ahora se enfrenta a un problema donde sus prácticas verdes actuales no son suficientemente fuertes como para cumplir con este principio. La fuerte expansión mundial de IKEA requiere aún más madera y aunque hayan logrado cada vez ser más eficientes con el uso de este recurso, las cantidades utilizarían tendrían un impacto sustancial negativo en el medio ambiente. IKEA tendrá que encontrar la manera de utilizar menos madera para producir los mismos muebles de tal manera que realmente exista sustentabilidad en el uso de este recurso natural. Si no realiza estos ajustes estará infringiendo este principio.

Justicia

Pudiéramos argumentar que el principio de la justicia también juega parte en esta problemática debido a que si IKEA sigue con su mismo ritmo de crecimiento y mismas prácticas se estará enriqueciendo a coste de la salud de los demás considerando que la tala no sustentable de árboles traerá problemas de salud para la población general.

5.- ¿Cuáles son las alternativas de solución? Entre estas alternativas, ¿cuál es la solución administrativa que ustedes escogen, basado en los principios universales (#4), para lograr la jerarquía de valores propuesta (#3) y corregir las causas (#2). Sustenta la solución propuesta (con argumentos y referencias apropiadas).

Entre las soluciones planteadas por Ikea la empresa se ha dado la tarea de ser sustentable optando las siguientes políticas en la producción de sus muebles.

* Control ambiental en las sucursales: Cada tienda de IKEA cuenta con un lista de control ambiental la cual verifica que se cubran los tópicos principales como los entrenamientos a empleados y el manejo de residuos; el cual se basa en encontrar mejores formas de deshacerse de los residuos, alentar a los colegas a usar métodos de transporte más amigables con el medio ambiente y a la difusión de la conciencia ambiental a través de las tiendas y sus clientes. Además están diseñadas para que cuenten con instalaciones sustentables como son los paneles solares, uso de energía alternativa y el uso de bolsas ecológicas en lugar que las bolsas comunes de plástico. Ikea busca fomentar en sus clientes las practicas ecológicas de tal manera que cobra a sus clientes por el uso de bolsa de plástico para que estos se inclinen mas por el uso de las ecológicas. * Utiliza adecuadas prácticas forestales para la adquisición de madera, la cual no debe de provenir de bosques naturales o de alto valor de conservación y en ciertos tipos de maderas deben de contar con la certificación que avale de donde proviene. * En cuanto al diseño del producto se aseguran que el material del cual está formado sea libre de sustancias que causen alergias o que sean nocivos con la salud. * Utilización del método “the eWheel”, el cual consiste en evaluar el impacto ambiental que tienen los materiales del producto y verificar que estos sean amigables con la naturaleza, además se verifican que el producto pueda ser reciclado en un futuro cercano en caso de ser necesario. Todo esto para evitar la tala excesiva de árboles. * El envío de la mercancía lo hacen a través de paquetes planos, para que al transportarlos puedan enviar más paquetes en un solo viaje y de esta manera reducir las emisiones de CO2 de sus camiones.
En cuanto al dilema ético el equipo propone lo siguiente:
Creemos que como Ikea es una empresa socialmente responsable y comprometida con la naturaleza una alternativa de solución será que la empresa ponga un límite en cuanto su expansión a nivel global. Ya que como se mencionó en un principio el dilema ético que enfrenta la compañía es expandirse vs la situación en donde la tala de árboles se duplicaría. Si la empresa dedica tanto tiempo en la implementación de políticas “verdes” debido a su gran preocupación por la naturaleza también puede plantearse la idea de hasta donde IKEA llegaría en cuanto expansión para que no generará un conflicto de interese. Es por eso que IKEA deberá poner un límite en la apertura de sucursales.
Otra alternativa de solución puede ser incluir productos con materiales sustitutos a la madera de tal manera que controlarían un poco la tala de árboles por parte de la compañía, los materiales pueden ser: el polietileno que se considera un material verde ya que proviene de las cajas de leche recicladas. (TyT, 2008)
Consideramos que dichas alternativas van muy de la mano con los principios éticos mencionados previamente en el escrito ya que ambas promueven, el derecho a la vida y la solidaridad ya que cuidando la tala de árboles la compañía se une a la preocupación de las comunidades cercanas de los bosques utilizados para dichas actividades
Bibliografía:
TyT. (2008, Octubre 10). Sustituto del hierro, concreto y madera… polietileno de alta densidad. Retrieved from http://tytenlinea.com/sustituto-del-hierro-concreto-y-madera…-polietileno-de-alta-densidad/

Similar Documents

Premium Essay

Ikea Case

...Executive Summary IKEA is a “privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories”. The company was established in Sweden in 1943 by a 17-year-old Ingvar Kamprad, who is one the world's richest people in 2013, the company's name is an acronym that consists of the initials of Ingvar Kamprad, Elmtaryd (the farm where he grew up), and Agunnaryd (his hometown in Southern Sweden). IKEA is currently the world's largest furniture retailer and arguably the most successful global retailer. Being one of the biggest global retailers, IKEA benefited a lot by the globalization of its business; IKEA’s target market is the global middle class who is looking for low-priced but attractively designed furniture and household items. The company started as a home-furniture retailer in Sweden over 60 years ago. Throughout the years with the use of effective globalization, “IKEA managed to increase its business revenue and profit by selling and making home-furniture in different countries all over the world, and it has over 300 retail stores in more than 30 countries”. Other than that, they sell roughly 10,000 different products, which attract customers from different places all over the world. The basic assumption behind IKEA's global strategy was “one-design-suits-all”. This case “IKEA’s Global Sourcing Challenge: Indian Rugs and Child Labor ” is about IKEA’s development from a...

Words: 2411 - Pages: 10

Premium Essay

Ikea Case

...IKEA assignment Introduction. This is an informative report about IKEA. IKEA is a company that’s internationally known as a retailer for furniture and home furnishing. IKEA was founded in 1943 in Sweden by Ingvar Kamprad. IKEA started out as solely a retail operation, until Kamrad bought his own small furniture factory in 1953. IKEA then started to design its own furniture line in 1955 and opened its first store in 1963 near Oslo. By now IKEA is one of the world’s top retailers of furniture and home furnishings and has more than 361 stores spread around 45 different countries around the globe. (this information comes from http://franchisor.ikea.com/FranchisingtheIKEAway/Pages/All-IKEA-stores.aspx) IKEA is historically known for its high quality items for affordable prices and for their self shopping stores. Customers can come into the stores, buy the furniture they like and take it with them right away. They then have to put it together themselves when they get home, or in some cases IKEA staff would even come to the customers home to help them assemble the furniture. This IKEA concept immediately became a success, mainly for kitchenware and children’s furniture. In 1973 the first store outside of Scandinavian territory was opened in Switzerland and in 1974 in Germany. After this began the expansion into all the markets on a global basis and by 1990 there were 17 stores situated in Western-Germany...

Words: 1878 - Pages: 8

Premium Essay

Case Study on Ikea

...Case Study on IKEA   Executive Summary The case study of IKEA has been read, analyzed; and the findings are presented in the report as required. The goal of the report was to analyze the case study of IKEA and then to present the findings as well as performing some tasks that are required in this report. Firstly, some terms that are closely associated with marketing has been described and analyzed. In addition to that, those terms are also discussed in relation with the case study. Brand, Business strategy, retail sector, price sensitive and franchisee are the terms that have been discussed in this report in the first section. In the second section, the required calculation for average number of customers of each sector and average spending of customers has been worked out. A new mission statement for IKEA has also been proposed there along with the justification for the mission statement. In the third section, the importance and nature of SWOT analysis has been discussed and elaborated. It is seen in the case study that IKEA performs a SWOT analysis that supports their process of building strategy. Moreover, the SWOT analysis of IKEA has also been performed and justified. In the fourth section, SMART objectives and some new marketing mix ideas for IKEA has been demonstrated. In the fifth Section, the concept of marketing model and minimizing the threats for IKEA has been included and demonstrated. Ultimately, the report contains what were required...

Words: 2740 - Pages: 11

Premium Essay

Ikea Case Study

...Executive Summary Background IKEA, the world’s largest home furnishings retail chain, was founded in 1943 by a Swedish entrepreneur Ingvar Kamprad. IKEA offers standardized products worldwide that are Scandinavian in design worldwide. The unique idea of this famous brand is to offer the option of assembling products to customers. The design of the furniture is very modern and light as it is made of particleboard. The products are of contemporary design and function with the concept that is based on low price. High quality, convenience, affordability, consistency, functionality and good design are the essence of this world class home furnishing retailer. Challenges IKEA faced many challenges in terms of culture and business practices as well as socio-economic and political conditions in China. The biggest challenges were pricing, copycat producers and cheap labor cost for assembled furniture. Alternatives To make the price more affordable for Chinese consumers IKEA has developed manufacturing units in China and collects raw materials locally. Due to country specific environment IKEA chose franchising in China. Because of cheap labor cost of Chinese assembled furniture IKEA offers reasonable fee-based assembling services. IKEA has built its stores near public transportation lines inside cities since only 20% of customers own cars in Shanghai. Recommendations IKEA needs to find more local suppliers to keep price lower. To understand local culture and purchasing habit,...

Words: 2857 - Pages: 12

Free Essay

Closing Case-Ikea

...MGNT 3650 June 12, 2011 Chapter 1 Closing Case-IKEA How has the globalization of markets benefited IKEA? Globalization of markets has benefited IKEA by making it easy to expand into different countries. Now that the whole world has excess to the internet, everyone is basically wearing and listening to the same things. This is very beneficial to IKEA because there isn’t a lot the company has to do with the style they originally started in Sweden. With the globalization of markets it makes it easier for customers to buy products from IKEA online or at the warehouse with their country “social” demographics and culture in mind. “The worldwide success of a growing list of products that have become household names is evidence that consumers the worlds over, despite deep-rooted cultural differences, are becoming more and more alike - or, as the author puts it, "homogenized." In consequence, he contends, the traditional MNC's strategy of tailoring its products to the needs of multiple markets may put it at a severe disadvantage vis-a-vis competitors who apply marketing imagination to the task of developing advanced, functional, reliable standardized products, at the right price, on a global scale.” How has the globalization of production benefited IKEA? This has saved IKEA time and money. IKEA has producers to supply each of its big markets; it helps by knowing the styles of each market. For example the producer for...

Words: 635 - Pages: 3

Premium Essay

Ikea Case Study

...creating this process IKEA is one of the fiercest low-cost furniture competitors in the market today. IKEA’s process for developing a new product contains the following steps: pick a price, choose a manufacturer, design the product, ship it, and sell it. By understanding each of these steps, IKEA’s competitive priorities and exceptional value to its customers, as well as, store placement comes to light. Step One: Pick a Price IKEA’s relentless focus on quality and low prices begins from the very start of developing a product. IKEA assigns a price to a product from the very beginning of the product’s development. Developers must focus on several aspects of a product, at this point in time, including materials, colors, and design. From this price point, developers begin searching for materials to create the product. By using the IKEA Trading Service Offices, developers search all over the world for the materials at the right price needed to create the product. By searching for low cost materials all over the world, IKEA implements its competitive priority of low cost materials from the beginning of a product’s development. Step Two: Choose a Manufacturer Once the materials needed to produce the product at a low cost are discovered, the product moves into the process of choosing a manufacturer. In order to increase its manufacturer’s knowledge of IKEA’s demand and expectations, many of the manufacturers have worked with IKEA for years. During this phase, IKEA works with its suppliers...

Words: 1192 - Pages: 5

Premium Essay

Ikea Case

...10/22/14 Cultivating Innovation at IKEA As the manager of the IKEA store I have been instructed to change the layout of my store. Corporate headquarters has instructed to me that the change must be “dramatic”. I will use several steps in order to make sure that these changes are in the best interest of IKEA. First, I will form an analysis of opportunities and identify what it is that I want to do. I will then explore multiple different layout options and then select the best option. Moreover, I would begin detailed planning and then implement these changes of the layout of the store. Lastly, I would get feedback to see if it was a good decision or not, if by chance it was not the best layout, then I would choose the next best layout option. After watching this IKEA commercial of the lady taking out her old lamp and putting it on the curb, and setting up her new lamp on her desk, I have concluded that this commercial is trying to convince consumers that they need to part with their old furniture and buy new, from IKEA. In addition, I found this quote from Alex Bogusky, executive creative director at Crispin Porter, says the "Ikea: Unboring" campaign is trying to convince consumers that it’s okay to throw out Mom's old coffee table and splurge on a new one. While Americans overspend on "fashion" purchases such as clothes and shoes, they still cling to a "till death do us apart attitude" with their furniture”, according to Bogusky. An IKEA executive named Bill Agee, once...

Words: 552 - Pages: 3

Premium Essay

Ikea Case

...FOR IMMEDIATE RELEASE Countdown to the 2013 IKEA Catalogue! Petaling Jaya, 16 August 2012 – Let your imagination run wild with the infinite possibilities of making your precious moments at home come true as we count down to the launch of the much awaited 2013 IKEA Catalogue. In anticipation of the arrival of the new catalogue on 30th August, drop by the IKEA store between 21st to 29th August to visit the larger than life IKEA Countdown Room display that will showcase different room settings every day to inspire you to recreate your special moments at home with your family or loved ones. Experience the magic moments of the IKEA Countdown Room Between 21st to 29th August, the IKEA Countdown Room will feature different room settings of a home every day. From the living room and bedroom, to the kid’s room and kitchen, be inspired to complete your moments at home with IKEA. There will be a host of inspiring and engaging activities and games for the family and friends with attractive prizes up for grabs throughout all of the nine days. Loads of IKEA furniture can be won daily in the IKEA Malaysia Facebook contest from 21st to 29th August as well. Celebrity chef Anis Nabilah, host of TV cooking programmes Icip-Icip and Sesedap, will also be on hand to conduct a cookie baking demonstration. For entertainment, up and coming acoustic guitar player Amir Jahari will be serenading visitors with his mix of soulful and sweet tunes. On 21st August, popular comedian Suhaimi Yusof will host...

Words: 1685 - Pages: 7

Premium Essay

Ikea Case Analysis

...1. What factors account for the success of IKEA? There are several factors that can be accounted to IKEA’s success, however there is one factor that can be considered as the key factor: - The low cost approach which is demonstrated by the following: o IKEA corporate culture: even after the extreme success and growth that the company has achieved, its corporate culture of cost cutting sensibility remains the same. Employees and Managers are encouraged and reminded to cut cost by reducing unnecessary expenses. o IKEA designs it own low priced furniture which allow them to cut the middle man by removing the suppliers and in turn allow them to reduce cost which were then passed to their customers. o IKEA stores are strictly self-service which reduces the cost of having to hire additional personnel. o IKEA furniture comes unassembled and in flat packaging. The flat package not only allows customer to transport the products easier to their home, but also allows IKEA to ship more items in bulk and cargo as well as reducing the storage space required for the items. Also, labor costs are reduced as an assembly personnel is not longer necessary and cost related to transportation damages are less frequent due to the flat packaging. o IKEA’s corporate slogan, “Low price with meaning,” shows their commitment to offer attractive and cleverly designed products while maintaining their low cost. 2. What do you think of the company’s product strategy and product range? Do you agree...

Words: 1821 - Pages: 8

Premium Essay

Ikea Case Study

...Case study : How IKEA adapted its strategies to expand & become profitable in China Executive Summary: IKEA is known globally for its low prices and innovatively designed furniture. In China, however, it faced peculiar problems. Its low-price strategy created confusion among aspirational Chinese consumers while local competitors copied its designs. This case study analyses how IKEA adapted its strategies to expand and become profitable in China. It also assesses some lessons the company learnt in China that might be useful in India, where it plans to open its first store by 2014 and 25 stores in 10 to 15 years. Swedish furniture giant IKEA was founded by entrepreneur Ingvar Kamprad in 1943. He began by selling pens, wallets and watches by going door to door to his customers. When he started selling his low-priced furniture, his rivals did everything to stop him. Local suppliers were banned from providing raw material and furniture to IKEA, and the company was not allowed to showcase its furniture in industry exhibitions. What did IKEA do? It innovated to stay in business. It learnt how to design its own furniture, bought raw material from suppliers in Poland, and created its own exhibitions. Today, IKEA is the world's largest furniture retail chain and has more than 300 stores globally. In 1998, IKEA started its retail operations in China. To meet local laws, it formed a joint venture. The venture served as a good platform to test the market, understand local needs...

Words: 1932 - Pages: 8

Premium Essay

Ikea Case Study

...IKEA CASE STUDY by Kasimir.v.k 1) In the early 1970s, IKEA became the largest retailer in Sweden. For the first time, a company changed the concept of furniture. They revolutionized the idea of simple-using furniture. This has been a market niche they entered during the early 1970s, which had an effective impact since furniture retailing did not work well. In addition, IKEA was able to offer the same quality or even better than other Swedish furniture manufactures for a much lower price. This was the first competitive advantage they had at that point; decent quality and low price. Another aspect that led to IEKA’s advantage was that at that point in time, Europe had a much smaller market, meaning it was easy to enter. The key success factors for IKEA were that they have been able to control the customer traffic at the checkouts and the merchandise pickup areas. This was allowing customers to pick up flat-packed furniture to so easily transport it to their homes, while saving maintenance costs. In addition, damage occurred during the transport minimized after flat-packing. The other key success factor was that they were able to compete with their prices in the market that turned them to a leading company in this business. 2) IKEA’s success of entering the European market was due to the low competition. Furniture organizations weren’t that developed and efficient, compared to IKEA. In addition, being part of Europe, the company had a good understanding of what the taste...

Words: 872 - Pages: 4

Premium Essay

Ikea Case Analysis

...Scandinavian and American customers, and examine the growth strategy. At age 17, Ingvar Kamprad founded IKEA with money (a gift) from his dad for successfully completing his studies. In 1951, he published his first catalog. Two years later, he opened a showroom in Almhuit and soon thereafter began designing his own furniture. In 1956, IKEA started testing flat packages. They designed products that could be packaged flat, which greatly reduced company and customer costs. IKEA opened their first store in Almuit in 1958, followed by another in Stockholm in 1965. Between 1965 and 1973, they opened seven new stores in Scandanavia, capturing 15% of the Swedish market. Business was going great, and it was time to expand. In fact, Kamprad said, "It is our duty to expand," dismissing those who insisted that furniture retailing was a strictly local business (Ingvar Kamprad and IKEA, 1996). Moving full steam ahead, Kamprad purchased a faltering IKEA franchise in Canada in 1979. Within 3 years, the canadian store was a lucrative business, and the management team set their sights on the Unites States. By 2002, the IKEA Group was the world's leading furniture retailer (Ingvar Kamprad and IKEA, 1996). Their 154 stores, across 22 countries, and 286 million customers made up gross sales of $12 billion. IKEA's Culture, Philosophy, and Strategy IKEA's founder once said, "The true IKEA spirit is founded on our enthusiasm, on our constant will to...

Words: 1779 - Pages: 8

Premium Essay

Ikea Case Study

...IKEA Case Study 12/31/2009 GAPR09RM085 Riddhima Chopra IKEA Case Study December 31, 2009 Table of Contents About....................................................................................................................................................... 3 History ..................................................................................................................................................... 3 Corporate Structure ................................................................................................................................ 4 Vision and Mission .................................................................................................................................. 4 The IKEA Concept .................................................................................................................................... 5 IKEA Range .............................................................................................................................................. 5 IKEA Store................................................................................................................................................ 6 Design.................................................................................................................................................. 6 Location.........................................................................................................................................

Words: 5440 - Pages: 22

Premium Essay

Ikea Case Study

...Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case Study 2 ...

Words: 1187 - Pages: 5

Premium Essay

Ikea Case Study

...IKEA was founded in 1943 by Ingvar Kampard and focuses on stylish but inexpensive Scandinavian furniture targeted at low to mid income families. In 1956, IKEA adopted the concept of self-assembly by opening a self-service open warehouse. Internationalisation began in 1973 and now IKEA is operational in 22 countries with 178 stores, having over 70,000 staff under employment. IKEA is able to maintain low-cost without sacrificing quality and offers great design to keep customers coming back. 
Instead of having its own manufacturing facilities, IKEA subcontracts manufacturers. and also engages customers as pro-sumers, where they both consume and partake in the production process. Finally, IKEA has one of the most efficient internal production system.
In addition, to maintain the cost leadership, IKEA’s suppliers are located in low cost nations with close proximity to raw materials and reliable access to distribution channels. Also, IKEA utilises economies of scale and competitive advantages as they look for suppliers that produce highly standardised products intended for the global market.
IKEA is able to keep customers coming back with its effective marketing shown in its eye catching catalogues, good service and strong in stock position as the most popular styles and design trends are continuously anticipated. With these three aspects, IKEA is able to attract its customers, keep the customers coming back and keep the customers satisfied. 
While there have been successes, there...

Words: 1741 - Pages: 7