Caselet Code : CLIM001
Publication date : 2005
Subject : International Marketing
Industry : Home furnishing
Length :
 4 Pages
Price :  Rs. 100 (Detailed Pricing Info)

To download this short case study (No. CLIM001) click on the link below, and select from the list:

» International Marketing Caselets

» Marketing Case Studies**

» ICMR Case Collection

 
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Abstract

The caselet looks at how IKEA, a small Swedish company, became a hugely popular and successful home furnishing company all over the world. It discusses the innovative strategies that IKEA adopted to offer quality products at affordable prices. Further, it describes how the company experienced a setback in the US market, how it adapted itself to the new situation and ultimately captured the market.

Issues:

» How IKEA managed to offer quality home furnishing products at affordable prices worldwide
» How the company tackled the problems it faced in the US market

 
Key words:

IKEA, home furnishing companies, self-assembled furniture, 'contemporary Scandinavian style' furniture, price conscious families, 'flat packaging mechanism', standardized products, economies of scale, optimum stock position, global distribution system.

Questions for Discussion:

1. While entering the US market, IKEA modified its existing range of products and came up with Americanized furnishings. Do you think IKEA had done the right thing by moving away from its philosophy of producing standardized products?

2. How was IKEA able to produce goods at a very low price?