IKEA: Managing Global Expansion

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : BSTA068 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Case Length : 13 Pages
Period : 2003
Organization : IKEA
Pub Date : 2003
Teaching Note : Not Available
Countries : Scandinavia
Industry : Consumer Durables


In 2002, IKEA was one of the leading furniture retailers in the world. IKEA offered a range of items - furniture, cookware, tableware, kitchen utensils, gadgets, textiles, bedding, cushions, shower curtains and paint. IKEA had emerged as a global player in one of the most highly fragmented industries in the world. In 2002, Interbrand ranked IKEA 44th on its list of the top 100 global brands, ahead of Pepsi and Harley Davidson. IKEA's business formula had been built around high-quality, Scandinavian design, global sourcing of components and knock-down furniture kits that customers transported and assembled themselves. IKEA's cost leadership strategy had enabled it to pass on to customers lower prices, anywhere from 25% to 50% below those of its competitors.

The case explains how a new business model can change the rules of the game even in a traditional industry.


  Page No.
Introduction 1
Background Note 1
Operations 3
Globalization 4
Organizational Culture 9
Exhibits -


Case study of IKEA, Furniture retailer, Low cost leadership, Furniture at IKEA, Cookware at IKEA, Kitchen utensils at IKEA, Textiles at IKEA, Case study of leadership, Management, Furniture hall, Ingvar Kamprad, Furniture information, Fragmented industry

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