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How IKEA Evolved Its Strategy While Keeping Its Culture Constant

If you’re leading your team through big changes, this episode is for you.

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The Swedish furniture maker IKEA found huge success producing quality furniture at affordable prices. But in 2017, the company was at a crossroads. Its beloved founder had died, and the exponential rise of online shopping posed a new challenge.

In this episode, Harvard Business School professors Juan Alcacer and Cynthia Montgomery break down how IKEA developed, selected, and embraced new strategic initiatives, while fortifying its internal culture. They studied how IKEA made big changes for the future and wrote a business case about it.

They explain how the company reworked its franchise agreements to ensure consistency among its global stores. They also discuss how IKEA balanced global growth with localization, developing all-new supply chains.

Key episode topics include: strategy, growth strategy, disruptive innovation, emerging markets, leadership transition, competitive strategy, company culture, succession.

HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.

• Listen to the original HBR Cold Call episode: IKEA Navigates the Future While Staying True to Its Culture (2021)
• Find more episodes of Cold Call
• Discover 100 years of Harvard Business Review articles, case studies, podcasts, and more at HBR.org .

HANNAH BATES: Welcome to HBR On Strategy , case studies and conversations with the world’s top business and management experts, hand-selected to help you unlock new ways of doing business. The Swedish furniture maker IKEA found huge success producing quality furniture at affordable prices. But in 2017, they were at a crossroads. Their beloved founder had died, and the exponential rise of online shopping posed a new challenge. Today, we bring you a conversation about how to develop, select, and embrace a new strategic initiative – with Harvard Business School professors Juan Alcacer and Cynthia Montgomery. They studied how IKEA made big changes for the future while fortifying its internal culture and its external identity. In this episode, you’ll learn how the company reworked its franchise agreements to create a more managerial and modern culture, and ensure consistency among its global stores. You’ll also learn how they balanced global growth with localization – including new supply chains. This episode originally aired on Cold Call in June 2021. Here it is.

BRIAN KENNY: For some of the world’s most celebrated founders, the entrepreneurial drive kicks off at an early age. Mark Zuckerberg developed Facebook in his Harvard dorm room at the age of 18. Michael Dell made $200,000 upgrading computers in his first year of business, he was 19. Before Jack Dorsey founded Twitter, he created a dispatch routing platform for taxis in his hometown of St. Louis, while he was in middle school. But then there’s Ingvar Kamprad who began selling matches at the age of five to neighbors in his rural Swedish homestead. By the age of seven, he was buying matches in bulk in Stockholm and selling them at a profit back home. Ingvar learned early on that you can sell things at a low price and still make a good profit. A philosophy that fueled the success of his next business venture, IKEA. Today on Cold Call , we welcome professors, Juan Alcacer, and Cynthia Montgomery to discuss their case entitled, “What IKEA Do We Want?” I’m your host, Brian Kenny, and you’re listening to Cold Call on the HBR Presents network. Juan Alcacer’s research focuses on the international strategies of firms in the telecommunications industry and Cynthia Montgomery studies the unique roles leaders play in developing and implementing strategy. They are both members of the Strategy unit at Harvard Business School. And thank you both for joining me today. It’s great to have you on the show.

CYNTHIA MONTGOMERY: Thanks Brian.

JUAN ALCACER: Thank you for having us.

BRIAN KENNY: You’re both here for the first time, so we’ll try and make it painless so we can get you to come back on. I think people are going to love hearing about IKEA and getting an inside view. Most of us have had that experience of being like mice in a maze. When you go into an IKEA store, you are compelled to walk through the whole place. It’s really brilliant, so many of the touches and things that they’ve done. And this case helps to shine a light, I think, on some of those decisions and how they were made. I had no idea how old the company was. So just starting with its history, it’s going to be good to hear about that. Juan, I want you to start, if you could, by telling us what would your cold call be to start this case in the classroom?

JUAN ALCACER: I like to start the case, bringing in the emotions of the students and their relationship with IKEA. So most of our students have had some experience with IKEA. So I’d just start asking how many of you have been in IKEA, and then I’d start asking why? Why did you go to IKEA? And this time telling you all the things that you just mentioned, for instance, walking through the maze, going to eat the meatballs. So they started bringing all these small, decisions that were made through the years, that made IKEA, IKEA.

BRIAN KENNY: Who doesn’t love the meatballs? Cynthia, let me ask you, you’re both in the Strategy unit at Harvard Business School, there’s a lot of strategy underlying this whole case. I’m curious as to what made you decide to look at IKEA and sort of, how does it relate to your scholarship and the things that you think about; the questions you try to answer?

CYNTHIA MONTGOMERY: I’m really interested in the choices firms make about who they will be and why they will matter? The core questions at the identity of a company. In 1976 Kamprad laid out very, very carefully. What IKEA would do, who it would be. He identified its product range. The customers it would serve, the company’s pricing policy, all in a document called, The Testament of a Furniture Dealer. And he described it as, “the essence of our work.” And 45 years later, it was still required reading for all of the IKEA’s employees. It’s probably the most compelling statement of corporate purpose I’ve ever seen.

BRIAN KENNY: Remarkable in a company that’s based on furniture. It was a very, sort of powerful thing. There’s an exhibit in the case that shows the whole Testament. Maybe we can dig a little bit into the history here. I alluded to the fact that it’s been around for a long time. Cynthia, just tell us a little bit about how the company came to be and how it evolved over time.

CYNTHIA MONTGOMERY: IKEA started actually as a mail-order business in Sweden and in the late 1940s Kamprad noticed that despite a lot of demand for furniture, agreements between the furniture manufacturers and retailers were keeping furniture prices real high. He was interested in a different set of customers. And he decided that to attract farmers and working class customers, he needed to be able to offer quality furniture at lower prices.

BRIAN KENNY: What were some of the early challenges that they faced. I’m also curious a little bit about the Swedish culture and how that sort of factors in here. Because there was definitely undertones of that factoring into the way they set this up.

CYNTHIA MONTGOMERY: It’s a virtue to be frugal and to be very careful about how you spend your money. And that made a huge impression, particularly given his background, growing up on a farm for Kamprad, he decided he really wanted to lower the prices of furniture and began to do so. And it turned out that there was a very, very strong response from other furniture manufacturers who basically said that they were going to boycott him. They wouldn’t allow him into their furniture fairs, him personally, as well as his company. And so in turn, what happened was that they also pressured local suppliers not to sell to a IKEA anymore, basically trying to force him out of the market. And what happened was that that actually drove Kamprad to Poland as a source of supply because local firms wouldn’t supply him anymore. And in the process, he discovered that Polish manufacturers could actually make furniture at far, far lower costs than Swedish manufacturers. And that essentially gave IKEA a cost structure that was more like a difference in kind, than a difference in degree. And that proved enormously important to building almost insurmountable competitive advantage for IKEA.

BRIAN KENNY: He was also really keen with innovations early on that things like the restaurant area and the childcare space, what were some of the insights that drove him to make those kinds of decisions?

CYNTHIA MONTGOMERY: One of the things that he decided quite early on is that he wanted to have the stores located out of town. And the reason is because land there was much, much cheaper. So he built these ,as you described earlier, Brian, these gigantic stores on the outskirts of town and they had lots and lots of square footage and lots and lots of merchandise, but you know, it took time to get there. It took time to shop there and what he wanted to do was make it worth it for the customers to make the trip, worth it for them to spend a lot of time in the stores. So he decided to add restaurants and the now famous meatballs, which come in several flavors, actually around the world, and to add childcare centers that would care for young children while the parents shopped. On the low cost front, he was innovative in other ways, he actually borrowed the idea of flat pack from another innovator, but he’s the one that actually brought it to life in such a big way. Then he discovered that if you let the clients go in and pick off the furniture packs themselves, they could even save more money and lower the costs in the store.

BRIAN KENNY: So they have a pretty complicated org structure, when we start to dig into some of the nuance of the case. Juan, could you describe for us, how they’re set up from an org structure standpoint?

JUAN ALCACER: You have to realize that coming from Sweden, which is one of the countries with the highest taxation for corporations in the world. So early on, they decided to find some organization structure and legal structure that would allow them to lower taxes. And that created basically an ownership based on foundations, based in the Netherlands. And they decided, early on, to separate the company into pieces. One is the franchise store, which is basically running the brand and running the management image of the brand. And then the operational part of the company, which is a franchisee. And for many years, those two things were separated. The franchisee was also in charge of manufacturing and so forth. So it was a very strange structure, that was put in place in part by the charisma and the leadership style of Ingvar Kamprad. If I can go back to your question about the Swedish culture. One of the things that, at least for me, is very striking is that when you look at multinationals, there’s a thing called the liability of being a foreigner, which means that when you go to another country, you have some disadvantages. And you try to mitigate that liability of being a foreigner, by pretending to be of that particular country. IKEA went with a totally different approach, they’re totally Swedish. Names of their products are impossible to pronounce. The fact that they have meatballs, they have their Swedish flags all over the place. They embrace the Swedish spirit as a part of the brand. You don’t see many multinationals with that. That makes IKEA what it is today.

BRIAN KENNY: I definitely think that’s part of the appeal here in the US, for sure, is people being exposed to the Swedish culture in a way they never had before. What is the culture of the company like, what’s it like to work there?

JUAN ALCACER: We went to both the Netherlands and to Sweden and we had a great time. It’s a very egalitarian culture. All the VP’s, high-level managers, none of them have an assistant. Only the CEO has an assistant. They don’t have offices, so everybody shares an open space. The whole place is decorated with IKEA furniture, everybody talks to each other by their first name. It’s very collegial, very friendly.

CYNTHIA MONTGOMERY: I would add to that. I think IKEA was incredibly generous to us, in the sense that they shared all kinds of confidential, internal documents and were really willing to talk in a very open and forthright way, about both their strengths and their challenges, which was incredibly refreshing. And as Juan said, that it was very egalitarian, and not surprisingly IKEA was one of the first companies to embrace democratic design. And that spirit was everywhere in the company.

BRIAN KENNY: Cynthia, what would you say are some of the keys to their success over the years?

CYNTHIA MONTGOMERY: I’d say that IKEA basically picked a lane and stuck with it. They had clarified, as I said at the top of the show, very, very carefully about what they wanted to do, who they wanted to be. And what they said is, look, this is what we’re going to be about. We’re going to offer an extensive range of practical, well-designed furnishings at low prices. And we’re going to serve the many, not the few. And the many are those with limited financial resources. When you have such clarity about what you want to do, then you can set out and try to maximize how you approach that. Essentially IKEA built a system, to do exactly that, extremely well and their distinctiveness made them truly an iconic firm. And it’s great when you talk with students about, what’s the purpose of your business?, What are you doing? What’s interesting is that oftentimes they can describe much more carefully what IKEA is doing, than what their own businesses doing. The last thing I would add, is that as Juan one said, they’re really synonymous with Sweden and they put that right out there. It’s almost like the way that Coca-Cola is synonymous with the US. And that has been a big part of their advantage.

BRIAN KENNY: Okay. So we’ve painted a very rosy picture for IKEA, but it’s an HBS case. So there’s tension, inevitably. So let’s dig in a little bit to where the case brings us. I’m going to mispronounce his name. I hope I don’t, but Torbjörn Lööf is that close?

CYNTHIA MONTGOMERY: Yeah.

BRIAN KENNY: He is the protagonist in the case. And he is stepping into a leadership role here really after an iconic leader has stepped back and that’s a challenge. Any time that happens, and a leader has to step in. And as he starts to sort of peek underneath the hood a little bit, he starts to see some of the challenges that IKEA is facing in this now seventh decade, I guess, of their existence. So Juan, maybe you can set that up for us a little bit.

JUAN ALCACER: It’s not only that he is stepping in the shadow of a leader that created the company. It’s that the company is still controlled by the family. So this is not a public firm, this is a private firm. So, he had to basically walk a very, very thin line, trying to take IKEA towards the future, but still preserving the past. And he had basically two main tasks, one is short term, that organization restructure that we were talking about, that was very complicated was created products. As I said before, the franchisee, which is basically the one that was running all the operations, was also the manufacturer. But there were other franchises. So for instance, the operations in Middle East are run by another company. So they wanted to create a system of transparency, that all the franchises are run the same way. When you have a franchisee that has basically represented 80% of your sales, and the ones that are representing 2% or 3%, there is an imbalance of power. So they tried to create a structure that is more managerial, that is more modern, that will allow to create incentives for new franchisees to come into the system. So that transaction was basically transferring production and transferring the functions that were in the franchisee back to the franchisor. There were 25,000 people that have to move from one place to another.

BRIAN KENNY: Wow.

JUAN ALCACER: They didn’t move physically, but in terms of the legal status they shift around. And the second is to bring IKEA to the world. What they observed is that there were some changes in demographics, they were targeting the low-income, what they call the thin wallets of the world, but it turned out that people that would go to IKEA are not thin wallets anymore. These people have already moved towards the middle-class and they also have this whole, to increase the number of consumers to three billion, and that meant that they have to basically grow globally, at a rate that they have never done, before they had two or three markets, like China and India. They also have the issue of eCommerce, to pick up and every retailer in the world is dealing with that. So, it’s two steps. One, getting the house in order, and second one, creating a path for the future for IKEA to become an icon for the next 75 years.

BRIAN KENNY: Yeah. And I also think at some level it’s hard to sustain that original mission that they set out with, when you’re trying to expand so rapidly and bring in a much larger audience. Cynthia, I don’t know if you have other observations about these changes they were facing.

CYNTHIA MONTGOMERY: Absolutely. Because one thing is that you can look at the challenges that came from expanding into new geographies. But the other thing that they found in a large study that they did, is that there were challenges in their core business as well, that the countries they’d been in for a number of years, and what I’ll call the big blue box stores, mostly in developed countries. What they found is that increasingly many of their customers in those markets wanted new conveniences. They wanted stores that were located closer to city centers because a number of people say in their late twenties, early thirties are not driving and don’t have cars. And they found that there was an increasing demand for delivery and assembly services for shopping online. These trends are worrying to a huge number of retailers, but particularly a challenge to IKEA because low price, low, low price, so low that that people can recognize the difference. That being at the heart of their strategy. And customers’ willingness to spend time getting to the store, hauling furniture about, ultimately assembling it. Those are at the very, very heart of their low-cost strategy and their very distinctive value proposition. It was a big challenge within the developed markets as well.

BRIAN KENNY: And depending on where they went in the world, a different set of challenges pops up almost everywhere. Juan, you mentioned earlier that they pushed back against localization, but is that a sustainable strategy? When you’re trying to go into entirely new markets like China and India.

JUAN ALCACER: The beauty of IKEA is that they found a segment across different cultures that was very similar. College students the United States, that needed to have furniture for a few years only, it could be young couples that are opening a new house, in some places it’s immigrants that are moving from one country to another country that need to buy furniture, but they don’t have the money to do so. So there was this very common segment across the world that they were able to then define, that allows them to have basically 80% of their line, of their range, is common across countries. And they have around 10% to 20% that varies by country. Now, when they go to China, and they go to India, they find that the changes have to be of a higher scale for three reasons. One, the tastes are different, also the materials, when you are going to India and you are going to houses that are in a high humidity environment, the type of wood that you can use is different. Now you start, not only changing the look of the product but you also have to change how you made it. And the third big challenge is when you look at what is defined as thin wallet, in these markets, is really thin. It’s not thin wallet in Sweden, it’s not thin wallet in the United States. So, you have to go to prices that are really, really low. And that means that you are already a low cost producer but you have to go even lower. That means that you have to change your supplier, so it starts changing the fundamental parts of the business model that they created through the years.

BRIAN KENNY: And it could probably, pretty easily, get away from you. So this does call for a strategy. Cynthia, can you describe for us what the three roads forward are? This was sort of underpinned their strategy going forward and how they were going to deal with some of these challenges.

CYNTHIA MONTGOMERY: Basically, the three roads, the first was affordability, as Juan said, this isn’t affordability in the way that they, at the level at which they’ve traditionally thought about it. This is affordability for wallets that are either very thin or actually where the willingness to pay just isn’t as high, because they’re accustomed to having goods that are at very low prices. So they wanted to attack affordability for people who could not afford IKEA today. They cared a lot about accessibility. They’ve got to reach and interact with people where they are. And the last is sustainability, and they felt really, really strongly about this. And I think much in line with what you see with a number of other countries in Europe, that they cared a lot about the sustainability of the products and wanted to make a positive impact for people, society and the planet. And they’re taking on all three of these aspirations at once.

BRIAN KENNY: You have written many cases, I’m sure that parallel this, what are some other firms that have faced similar challenges and maybe figured out a way to deal with the same sets of challenges?

JUAN ALCACER: The challenge of going overseas, we didn’t write cases about multinationals for many years. They always have this tension between coordination in headquarters and adaptability in each one of the subsidiaries. So IKEA was very good at playing that game for many, many years. In a way they were going to countries that were somehow similar to Sweden. Now that they are venturing to countries that are farther away in many dimensions, not only physically, but also in terms of economic distribution, in terms of taste. They are seeing this tension to be amplified. We have seen that in many companies, Procter and Gamble has been doing that for years and years, Unilever has been doing that for years and years. IKEA has done it for 75 years. They went overseas very early on. But now the challenge is a little bit higher. The other challenge is that Cynthia also mentioned, which is basically adapting to new technologies and new demographics. Every retailer is facing that. Any supermarket, any chain that has been selling in brick and mortar is facing those challenges. So, what is interesting about IKEA is that they are facing these all at the same time and they’re facing this during the process of transition from the leader that created the company to a new set of managers that are more professional and are not part of the family.

BRIAN KENNY: You mentioned technology. I’m just curious, the role that the internet plays in this, because now everybody can see, you know, through YouTube and other things, what the experience is like from one place to the other, and how important is consistency across all those geographies, versus a little bit of localization to make it feel a little bit more like this is the China version of IKEA versus the European version of IKEA. Cynthia, do you have thoughts on that?

CYNTHIA MONTGOMERY: That’s the real challenge here in the sense that, how do you take this whole model that has been developed over so many years? And it’s very, very hard to imitate, which has given them a lot of strength over the years, but when the environment changes, instead of responding in a piecemeal way to all kinds of external stimuli, it’s how do you take this whole model and evolve it in some coherent way that stays true to the iconic sense of who IKEA is? I really see it fundamentally, as an existential question for IKEA.

BRIAN KENNY: Such a great point. Look, I want to thank both of you. This has been a really interesting discussion about a brand that we all know and have experienced many times firsthand. I have one more question for each of you before we part ways. And that would be if there’s one thing you want people to take away from this case, what would it be? Juan, let’s start with you.

JUAN ALCACER: What I would like listeners to take from this, is we have this mentality of growth, growth, growth, and expanding and doing different things, and when you look at IKEA, you have to wonder, is it better that IKEA stays doing what they do well, or do they have to keep growing and entering all these markets and adapt to overseas. We have this basic assumption that growth at any cost should be the goal. I would like the listeners, when they look at the case and think about the cases, to question that very basic assumption.

BRIAN KENNY: Cynthia?

CYNTHIA MONTGOMERY: One of the things about IKEA that I think it’s really, really important to know is that they really brought something different to the world and they did it in a very compelling way. So at the heart, to do something that’s distinctive, that adds value. It comes through really strong in the IKEA story. At the same time, when the environment changes, how do you evolve, is really challenging. And so the fact that they’re being so open in how they’re confronting this, I think there’s a lot to learn there. It’s a challenge. I think it’s really important to remember what’s at the heart of this company, is that they’re really bringing something that’s very unique and they need to continue to do that.

BRIAN KENNY: Juan Alcacer, Cynthia Montgomery, thank you so much for joining me. The case is called, “What IKEA do we want?” Thanks again.

JUAN ALCACER: Thank you.

HANNAH BATES: You just heard Harvard Business School professors Juan Alcacer and Cynthia Montgomery in conversation with Brian Kenny on Cold Call .  We’ll be back next Wednesday with another hand-picked conversation about business strategy from the Harvard Business Review. If you found this episode helpful, share it with your friends and colleagues, and follow our show on Apple Podcasts, Spotify, or wherever you get your podcasts. While you’re there, be sure to leave us a review. We’re a production of the Harvard Business Review. If you want more podcasts, articles, case studies, books, and videos like this, find it all at HBR dot org. This episode was produced by Anne Saini, and me, Hannah Bates. Ian Fox is our editor. Special thanks to Maureen Hoch, Adi Ignatius, Karen Player, Ramsey Khabbaz, Nicole Smith, Anne Bartholomew, and you – our listener. See you next week.

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Table of Contents

Ikea target audience, ikea marketing channels, ikea marketing strategy, ikea marketing strategy 2024: a case study.

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Ikea serves the unique functional needs of each target audience, with special attention to 16-34-year-old adults. It has solutions for:

• Single people not living at home
• Newly married couples
• Families with the youngest child under six
• Older married couples with dependent children
• No children families
• Labor force
• Professionals 

Thus, it uses the following types of product positioning :

• Mono-segment positioning. It appeals to the needs and wants of a single customer segment that is cost-conscious and prefers value for money.
• Adaptive positioning. It believes in periodically repositioning products and services to adapt to changes in customer preferences. Its Swedish furniture chain considers the dynamic nature of customer preferences. For instance, its latest products reflect increasing minimalism on the global scale. 

Ikea utilizes the power of the following marketing channels: 

• Mobile Application
• WebEngage: Email, SMS, and Whatsapp Marketing
• Social Media
• Telecalling
• Commercials

The Ikea marketing strategy contributes majorly to its success because it's original, imaginative, and distinctive while maintaining a transparent value proposition.

A Creative, Consistent Brand Theme

From the Swedish national colors on its buildings to rich meatballs in its store cafeterias, Ikea's marketing strategy reflects its cultural heritage proudly. It infuses all elements of their identity with a sense of self-assuredness that maintains their identity in the market of stiff competition. 

Emphasizing Affordability and Sustainability 

Understanding that a simple tiered strategy won't encourage repeat business, Ikea extends customization, flexibility, and mix-and-match furniture modules. It effectively combines the elements of affordability and sustainability in its marketing strategy to ensure success.

While the furniture options don't pledge a lifelong guarantee, the products are built to last. Even its reusable shopping bags reflect its commitment to sustainability.

Sponsorship and Influencers 

IKEA-sponsored comedic series Easy to Assemble. Its innovative content marketing was way different from a furniture product demo. Incorporating sponsored digital marketing campaigns and social media influencers have boosted the Ikea marketing strategy. 

Ikea’s Easy to Assemble Series

Exceptional In-store Experience

Ikea brilliantly displays products employing the best lighting systems to generate more sales. It strategically arranges best-matched items in mock rooms to encourage impulse purchases and inspire decor. The company also extends excellent customer service to provide a memorable experience and incite customers to come back for more.

Ikea’s Store Decor for Inspiration

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Website and Mobile Application Marketing

Ikea ensures an optimal mobile website's speed, button displays and gesture controls on its website and mobile app to retain and attract individuals to the site. It carefully invests in its UI/UX , enquiry-based chatbot, and regular updates on new offers, discounts, and promotions. 

One of the most successful marketing moves includes downloading its 3D modeling app to envision a dream home. It's one of its most successful marketing moves that allows IKEA to upsell its low-demand items by creating a desire in its customers to revamp the room.

Ikea’s Website With Engaging Content

Ikea's SEO (Search Engine Optimization)

Ikea's marketing strategy aims at enhancing the site's visibility for relevant searches to attract the attention of new and existing customers. It includes the right product-specific keywords and Google advertisements to further augment its organic ranking .  

Ikea Ranking for Bookcases on Google’s First Page

Ikea's SMM (Social Media Marketing)

Ikea's handles are very active on digital marketing platforms like Facebook, Instagram , Twitter, and Youtube . Their digital presence is impressive, with more than 30 Million likes on Facebook, 1 Million followers on Instagram, 5.3k followers on Twitter, and 41.2k subscribers on YouTube.

Ikea’s Instagram Profile

Its Instagram bio links to its website. The website also has links to its various social media posts. Its 'view shop' and 'call' options for product catalog and direct assistance, respectively, are a testament to a well-crafted Ikea marketing strategy.   

Ikea’s Youtube Advertisements 

IKEA also conducts free online workshops that lure lots of enthusiastic customers, resulting in gaining leads.

Ikea’s Online Workshop Ad

Content Marketing

Ikea relies on its content marketing strategy to create a distinguished presence amongst furniture brands. Its commercials, print ads, social media, and website stands out with attention-grabbing content. It combines innovation and humor to present the brand's core values and inspire people. 

Ikea’s Captivating Commercial 

Ikea Marketing Strategy bears testimony to a well-thought and structured marketing venture. Sign-up for our Digital Marketing Specialist and learn more about marketing case studies published by Harvard Business. You will be taught by experts from facebook and Purdue University. Sign-up for the course TODAY!

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Are you looking for an IKEA case study according to Michael Porter’s Five Forces?

Porter’s IKEA case study shows one company’s success in fitting together business activities, business strategy, and operations. His analysis shows how the activities connect to create a uniquely competitive business.

IKEA’s Fit Between Activities

Good strategies depend on the connection among many things. Fit means the value or cost of one activity is affected by the way other activities are performed – in other words, “synergy.” If the activities fit together, they each meaningfully contribute to the company’s increased value or lower cost, and they work strongly together. The IKEA case analysis below is one example of fit between different activities.

This is a clear departure from the (mistaken) idea of the one core competence. If strategy truly is based on one core competence, then it becomes relatively easy to replicate. More often, industries compete fiercely to control the one key “resource” – distribution channels, product portfolios – thus driving up cost. In reality, strong strategies are built on many unique activities that fit together to deliver the unique value proposition. Later, you’ll see how fit works well in the IKEA case study, despite certain trade-offs.

Fit arises in 3 ways . Keep this in mind when you read the IKEA case analysis:

• Example: many of Southwest’s activities are directionally pointed toward lowering cost and increasing convenience.
• When activities are inconsistent, they cancel each other out.
• Netflix’s large catalogue gives more chances to collect data points to make better recommendations.
• IKEA’s room displays substitute for sales associates, thus lowering cost.
• Dell will preload software onto PCs, substituting for the customer’s IT department.

Fit discourages rivals in a few ways:

• With a large range of activities, it becomes unclear which of the company’s activities are most valuable to replicate.
• As a simplistic example, say there are 5 activities that give a company a competitive advantage. If the chance of replicating one activity is 90%, then the chance of replicating all of them is 0.9^5, or 62%.
• An activity that fits one value chain can punish a different value chain, if it lacks synergies with the other activities or contradicts them.
• Activities with fit make it easier to see where the weak link in the chain is (think about this in the IKEA case analysis later).

The IKEA Case Study

Let’s examine a masterpiece of strategy in IKEA using the IKEA case study analysis. Their mission is to deliver stylish furniture at low prices. Their activities show clear trade-offs and strong fit:

• Assembling furniture yourself also seems to increase your enjoyment of it, maybe because of endowment effect. 
• Compact boxes reduce freight shipping costs from the manufacturer.
• This means time from buying to having furniture in your house is much faster than shipped furniture.
• IKEA stores are huge warehouses in large suburban locations with highway access. With large parking lots and loading zones, they allow customers to self-service and deliver their own furniture.
• IKEA showrooms have minimal staff, with the entire inventory laid out for buyers to peruse.
• IKEA cafeterias are self-service and customers are encouraged to bus their own trays.
• IKEA designs its own products, allowing trade-offs in styling and cost.
• Furniture has few customization options, allowing production in bulk and bargaining at scale.
• A narrower catalogue also allows IKEA to keep its warehouses fully stocked, instead of requiring shipping.

Many of these activities fit together and reinforce each other to provide low-priced furniture. The furniture’s self-assembled design reduces manufacturing costs, storage costs, shipping costs from manufacturer, and shipping costs to customers. In turn, IKEA’s locations make the furniture’s self-assembled design even more effective. 

Note how each activity is distinctly a trade-off : you either have furniture disassembled or not. You either have salespeople on the showroom floor or not. This is one of the aspects covered in the IKEA case study analysis.

Many traditional furniture retailers practice the inverse of IKEA’s value chain. If they tried to adopt one of IKEA’s activities, they’d find it less compatible with their own value chain, and so they’d gain very little of IKEA’s competitive advantage.

Note too that, in making these tradeoffs, IKEA is deliberately alienating customer groups – those who want furniture ordered seamlessly to their homes, who want nice salespeople to guide them through options, who want unique and fancifully designed furniture. The IKEA case study analysis shows how trade-offs can sometimes have big strategic payoffs.

Activity System Map

To visualize the strength of fit between activities, place the activities on a map.

• Start by placing the key components of the value proposition.
• Make a list of the activities most responsible for competitive advantage
• Add each activity to the map. Draw lines wherever there is fit: when the activity contributes to value proposition, or when two activities affect each other

Here’s an example for IKEA:

A densely interconnected activity map is a good sign. A sparsely connected map shows weak strategy.

The activity map isn’t useful just for description of your current strategy. It can also be used for ideation for new strategies:

• Can you improve fit between activities? 
• Can you find ways for an activity to substitute for another?
• Can you find new activities or enhancements to what you already do?
• Are there new products or features you can offer because of your activity map, that rivals will find difficult to emulate?

Porter’s IKEA case study is an example of a competitive business in a particular area of an industry. Porter’s IKEA case study shows business activities and strategy intersecting successfully.

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IKEA U.S. takes equity, diversity and inclusion to the next level

Furniture retailer builds ambitious new strategies into its business plan.

5-MINUTE READ

Call for change

A responsibility to build a better society.

For many years, the world’s largest furniture retailer, IKEA, has prioritized efforts to promote equity, diversity and inclusion (ED&I). For example, the company has partnered with social entrepreneurs, creating thousands of jobs for under-represented groups around the world, including a project with Syrian refugees to develop textile products for sale in IKEA stores. Additionally, through employee development and human resources programs across the globe, IKEA has successfully increased the percentage of women in leadership positions,  reaching 50% in 2020 .

Even with its existing achievements in ED&I, IKEA wanted to do more.

IKEA U.S. asked Accenture to help assess its current state of ED&I, define an ED&I vision, and develop a comprehensive plan to accelerate gains in this area. The aim was to implement an effective approach that the company could replicate in other countries. IKEA U.S. was particularly interested in setting and pursuing race and ethnicity goals as well as increasing the diversity of its leadership.

With increasing inequality due to climate change and other global challenges, we recognized that we have a responsibility to help build a society that provides equal opportunities for all.

STEPHANI “STEVIE” LEWIS / Chief Diversity Officer, IKEA U.S.

When tech meets human ingenuity

Improving maturity in ed&i.

We used our maturity model to characterize the current state of ED&I at IKEA U.S. This model measures the extent to which ED&I is embedded in a company in specific areas and identifies opportunities for improvement.

The team inputted the results of several activities into the model:

• Interviews with IKEA U.S. departments:  For instance, interviews with communications staff focused on understanding how ED&I values are embedded into the communication strategy.
• A survey of executives at IKEA U.S.  gathering insights into the current state of ED&I and their aspirations for the company.
• Focus groups with IKEA U.S. co-workers  to explore their experiences working at IKEA and gather their perspectives on the company’s ED&I maturity.

Using the model’s results and additional research on ED&I at eight other retailers, Accenture compared the ED&I maturity of IKEA U.S. with that group. We also compared human resources data for IKEA U.S. employees with U.S. Census data in various geographic areas, revealing the diversity gap between IKEA and local Census populations.

A valuable difference

A roadmap for greater equality.

We presented the results from our maturity assessment in a facilitated workshop with the IKEA U.S. ED&I staff and leadership team. The participants translated the results into a vision to guide action and several ED&I strategies, such as increasing underrepresented groups at all levels of the organization. They also developed 30 recommendations to be integrated into the 2023 business plan for IKEA U.S., such as determining ED&I performance indicators.

Since Accenture completed the project, the ED&I team has asked leaders at each U.S. store to implement ED&I initiatives that support the new vision and strategies while serving specific store needs. These include an Equity Council, an accountability group led by CEO Javier Quiñones, and a pilot program to support diverse talent with leadership training and mentorship. IKEA U.S. has also built a dashboard that tracks ED&I indicators at stores, allowing for progress reports to be shared with executives.

“We now have the data and the tools to take ED&I to the next level,” said Lewis.

Digital Innovation and Transformation

Mba student perspectives.

• Assignments
• Assignment: Machine Learning

IKEA’s Leap Forward with Data and AI

IKEA using data and AI to achieve digital innovation and transformation

IKEA’s Digital Transformation

Before becoming the largest furniture retailer in the world, Ingvar Kamprad started IKEA as a mail-order sales business in Sweden 1943. IKEA is now a global conglomerate or a multi-industry and multi-sector business organization. The success of this organization can be attributed to specific business strategies and tactics that revolve around offering well-designed and functional products at affordable prices.

Currently, IKEA is in the middle of a transformation of its business model that made it successful on a global scale. Specifically, for many decades IKEA’s business strategy was primarily based on having giant out-of-town warehouses, where shoppers pick their own furniture and then build it at home. But now it is looking increasingly at city-center stores, online shopping, home delivery and assembly, and more radical ideas such as leasing furniture.

 Barbara Martin Coppola, CDO at IKEA Retail mentioned in Harvard Business Review:

Pathways to a Just Digital Future

“Digital transformation is not a goal in and of itself, and it is so much more than technology. We are transforming our business: We are exploring potential new offers to customers, new ways to bring our offers to customers, and new ways to operate our business. And in order to be successful, digital needs to be embedded in every aspect of IKEA. Digital is a way of working, making decisions, and managing the company.”

IKEA has been on the digital transformation journey and the supply chain has been part of it. Its online sales have boosted during lockdowns, and digital transformation has helped make the company sustainable. Artificial Intelligence-powered product recommendations and a more scientific approach to data have seen IKEA lift average order value (AOV) by 2% worldwide.

IKEA Utilizing Data + AI

1. Decision Making

The first step IKEA made was to radically improve its ability to get high-quality quantitative information to understand how its ‘ recommendation’ solutions affected personalization . IKEA did this through high volume A/B testing on customer behavior and after initial experimentation, IKEA had a few key learnings: first, the mix of both UX and algorithms are really important for a cohesive customer experience; and second, the quality of personalization cannot be measured in silos. Statistical significance could be attained by testing several groups of recommendations at once.

2. Data for Personalization

Utilization of qualitative and psychographic data to understand its customers better and delve deeper to develop personalized experiences for its customers distinguish IKEA from its competitors. The qualitative data helps IKEA to understand that when a customer buys a piece of furniture, for example a sofa, the customer is bound to make other changes — the domino effect, to ensure the matching of the couch with the room, like lamps, curtains, and pillow covers. Like many modern businesses, IKEA’s digital strategy relies on customer data. However, the company understands the concerns around it and thus launched the Customer Data Promise to help customers understand, provide control, and the ability to make decisions about their data – for psychographic data.

3. Smarter Demand Forecasting

Optimizing stock across various in-store and online channels requires real-time analysis of customers’ buying behavior to minimize the demand and supply gap. To that end, IKEA created an innovative Demand Sensing, an AI-based tool that optimizes stock levels to ensure the consistency of shopping experiences for its customers. To create projections and predict future demand more intelligently and effectively, the tool leverages up to 200 data sources for each product. The system considers various influencing elements, like festival purchasing preferences, the impact of seasonal changes on purchase patterns, and weather forecasts, among others. It can even detect an increase in in-store visits during the month.

4. AR and VR for Visualization

IKEA Kreativ  uses virtual and mixed-reality room design technology to let customers use the app to scan and design their space and bring products into their homes. Once the customer is happy with the design, they can add everything to their online cart and check out. Or, they can save everything to a shopping list and go to the store for pickup. IKEA Kreativ brings machine learning and 3D technology into something that is immediately applicable and helpful for customers. Both mobile and web applications connect to a scalable, containerized, cloud-based platform of microservices and AI pipelines, hosted by the Google Cloud Platform.

Results and Lessons

COVID influenced IKEA to commit to its digital transformation journey three years ago with a root and branch review of the company’s digital strategy, encompassing everything from back-office IT systems to how consumers experienced the buying process on their smart devices . IKEA visualizes key consumer data from around the world in real time, sharing insights across departments, markets, and nations. As a result, IKEA can be far more adaptable and proactive in its social efforts.

With more personalized and real-time recommendations with AI, IKEA was able to increase the number of relevant recommendations displayed on a page by +400%. Even though IKEA previously already had well-tuned recommendations of several types, with ‘Recommendations AI’ IKEA measured a +30% improvement in click-through rates as well. Average order value saw a +2% surge with numerous examples of how Recommendations AI could help customers find both attractive and directly complementary products, expanding the customer purchase from a single product to an entire home furnishing solution.

• Milne, R. (2019) “Inter Ikea’s Torbjorn Loof: making the vision clear”  Financial Times,  Available at:  https://www.ft.com/content/6b250c0a-2486-11e9-b329-c7e6ceb5ffdf
• https://hbr.org/2021/06/inside-ikeas-digital-transformation
• https://www.architectmagazine.com/technology/ikea-launches-augmented-reality-application
• https://www.pymnts.com/news/retail/2022/inflation-stokes-recession-fears-while-slamming-retail-earnings/
• https://digiday.com/marketing/ikeas-chief-digital-officer-on-how-its-using-ai-to-personalized-online-shopping-working-with-influencers/
• https://newatlas.com/around-the-home/ikea-kreativ-ai-room-design-app/
• https://biz.crast.net/ikeas-chief-digital-officer-explains-how-hes-using-ai-for-personalized-online-shopping-working-with-influencers/

Student comments on IKEA’s Leap Forward with Data and AI

I love this! Thank you for sharing Jiwon. It might be interesting to know if they have started to integrate online and offline experiences through data transformation. I am imagining a scenario like where a customer registers his/her visit to an offline store and scans the QR code of furniture that he or she is interested in (or even food order, which is impeccable for IKEA’s offline business!).

A very comprehensive blog post about Ikea’s business application of AI! The blog post focused more on the front-end AI applications and touched upon the back-stage digital operations as well. I wonder how interconnected the front and back ends are and what Ikea is thinking about as the next steps in the AI application!

Hi Jiwon, thank you for your Blog! It was intriguing to learn how IKEA is using artificial intelligence and data not only for their decision making and forecasting, but also to improve their customer experience. It also reminded me of the example of Starbucks. They are both collecting a lot of customer data to make seasonal changes and improve the experience compared to their competitors. I’m curious to see how the data collection is adapted to the local context and how IKEA is implementing all the new digital and technological aspects into their traditional business model step by step.

Thank you so much for this blogpost! It is impressive how IKEA was able to increase relevant recommendations by so much and how they make use of AI. I am wondering how far IKEA could take their strategy with using AI. I have some reservations, because I believe that many customers go to IKEA, because they love to walk around the store, only need one thing, and buy some candles and a hotdog on the way out. For IKEA, I think it would be necessary to focus on staying offline as well and focus on the warehouses as that is what at least in my head IKEA still stands for. On the other hand, I can see that using AI can improve the customer experience in other areas, for example if they are looking for anything specific.

Thank you for your blog! it’s really interesting to see that IKEA has introduced AR & VR technology to help customers to increase customer’s convenience. But I’m wondering how will the customer shopping behavior change after using AR & VR tech and its impact will be translated to the IKEA’s topline? Additionally, I’m curious to understand did IKEA make this move because of any existing competitive forces in the market, as I’m sure they aren’t the first mover in the furniture retail business to use the AR & VR tech. And really interested to see how this digital strategy pans out for IKEA.

This is an awesome post! I think like others here, I’m curious about how they can use the AI to actually improve their supply chain. I have often been frustrated after going really far outside the city to one of their stores to realize that they are out of stock of something and don’t know when it will be back in stock. It seems like some of their AI is gimicky but not actually addressing revenue-generating-issues that need to be addressed!

It’s always incredible to me when a store is able to find sources of data in person to be able to improve CX! I still think they’re a little behind the other furniture stores like Williams Sonoma etc. who have done several AR / VR acquisitions to help customers plan their homes and shopping better, but also think that might be because of their customer base / demographic. I also wonder how much they are integrated the in-store experience with more targeted email campaigns (something along the lines of ‘we saw you didn’t check out the bed you scanned twice and spent 10 minutes looking at, what were you looking for / here’s a discount, etc.)

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IKEA: leading the way in sustainability

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Reducing carbon emissions

IKEA recognises the impact its operations have on the environment and is taking action to minimise that impact. For example, the company has made significant investments in renewable energy, such as wind and solar power, and is actively working to transition its energy sources away from fossil fuels. IKEA has also set ambitious targets for reducing its carbon emissions, such as reducing energy consumption in its stores and distribution centres by 80% by 2030.

Developing sustainable products

IKEA is further committed to developing more sustainable products that will positively impact the environment. The company is investing in research and development to create products that use less energy and resources and have a longer lifespan. For example, IKEA developed furniture made from renewable materials, such as bamboo, and is working to improve the recyclability of its products.

Inspiring action

IKEA's commitment to sustainability is not just limited to its operations. The company also works to inspire others to take action and make a difference. Through its commitment to becoming climate positive by 2030, IKEA is setting a bold example for other companies to follow. Additionally, it is working to educate its customers about the importance of sustainability and its role in creating a more sustainable world.

The future is bright

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Case Study: Analysis of IKEA’s Business Model, Competition, Global Strategy and Environmental Factors Using the PEST Framework

Introduction

IKEA is a renowned Sweden-based multinational retail company that focuses on do-it-yourself furniture, home accessories and electronic appliances. This essay will discuss how IKEA’s business model has evolved over time and how it has performed. The essay will then discuss IKEA’s main competitors and business environment using the PEST framework, before ending with a list of recommendations for IKEA to maintain its success in the US while expanding globally.

Section 1: Evaluation and evolution of IKEA’s business model concept

Initially, IKEA focused on lowest-price DIY furniture at sufficient quality, which allowed consumers access to affordable furniture which they could assemble on their own . However, the company was criticised for its poor product durability and poor design aesthetic. Since then, IKEA has invested heavily in product design and manufacturing, and now delivers affordable furniture at reasonable quality and design. The core aspects of IKEA’s business model are thus its affordable DIY products, simple Swedish design, and reasonable quality. In recent years, IKEA also offered excellent service and innovation through its products, which drove it to grow rapidly in the international furniture market. (Edvardsson and Enquist, 2011)

The company has changed the way consumers shop for furniture by turning a time-consuming, expensive and formal process into one that was more affordable, simple and fun. (Moon, 2004) IKEA did so through the use of affordably priced products, stylish catalogues, large and playful consumer showcase stores, and sleek Scandinavian design. (Khamis, 2016) This approach allowed beautiful design to be accessible to the mass consumer market. The advantages of such an approach were affordability, aesthetics and efficient setup and storage, while the disadvantages were a lack of durability and the time spent on constructing and assembling the IKEA furniture.

Section 2: PEST Analysis and Key Environmental Factors

Next, this essay will analyse IKEA’s business environment in order to better inform IKEA’s new strategies for dealing with competition and expansion. The following PEST analysis will be used to analyse the environmental factors impacting IKEA. Primarily, IKEA’s operations in different countries has presented specific political, economic and social sensitivities that affect IKEA’s supply chain, product branding and naming, and marketing, while new technologies represent both significant opportunities and threats for IKEA.

Foremost, in terms of political factors, IKEA has been affected by politics in terms of supply chain stability, regulation, political crises and product naming. IKEA’s operations remain reliant on political stability to ensure that the global supply chain remains reliable. IKEA also remains subject to regulation over safety and reliability of furniture, which may vary across different political jurisdictions. Political events such as Brexit have also caused IKEA to experience an increase in manufacturing and export prices due to the fracturing of the EU common market. Finally, IKEA has had to more carefully consider the naming of its products which have specific cultural or political connotations across different countries. For example, its Lufsig product was construed to have a name similar to a vulgarity in Hong Kong, and was used for a political protest against the Hong Kong government. (Ngai et al, 2017) This caused IKEA to launch initiatives to defuse the political tensions that arose as a result.

Next, in terms of economic factors, IKEA is set to benefit from the growing middle class in emerging markets such as East Asia, and may wish to diversify its operations away from the West given the sluggish recovery post -2008 in the US and EU. The globalization of the supply chain has also allowed IKEA to enjoy better production costs, as it has outsourced manufacturing to keep costs low.

In terms of social factors, IKEA’s operation in diverse multinational markets have led it to weigh tradeoffs in its marketing approach, when catering to countries with distinct social norms. For example, conservativism in Russia and Saudi Arabia led IKEA to remove same-sex couples and women respectively in their catalogues for those countries, but resulted in a backlash from their Western consumer market whose customers were more liberal in political beliefs. (Molin et al, 2012) IKEA has also had to deal with social backlash from the use of East German political prisoners to manufacture their products in 1980s. (Briskin, 2016) However, on the bright side, growing global interest in Scandinavian design and sustainability within the larger society has allowed IKEA to tap on these trends to drive growth.

Finally, in the area of technological factors, new technologies such as augmented reality, virtual reality and artificial intelligence present opportunities for IKEA to deliver more customised and experiential consumer experiences. Furthermore, IKEA is able to conduct on-site, on-demand manufacturing through advances in scalable 3D printing. However, IKEA has to be mindful of rising competition from white label manufacturers and copycats enabled through the technology of e-commerce.

Section 3: Evaluation of IKEA’s competition

IKEA’s key competitors are Walmart, Amazon and Ashley Furniture Industries. By revenue, IKEA’s 2018 revenue was USD $44.6 billion, which puts it behind diversified retail conglomerates such as Walmart (USD $500.3 billion) and Amazon (USD $207 billion), but ahead of pure-play furniture companies such as Ashley Furniture Industries (USD $4.7 billion). (Buehlmann and Schuler, 2009) These companies were selected because they represent a broad spectrum of furniture and home appliance providers. While IKEA is a pure-play furniture company like Ashley Furniture Industries, Walmart and Amazon may be seen more as aggregators of third-party furniture brands, with Walmart being more dominant in physical retail and Amazon being more dominant in online retail.

Their advantages and disadvantages in satisfying the value propositions of their customers will be evaluated according to the dimensions of affordability, product quality, branding, supply chain management, digital marketing and e-commerce. Foremost, for IKEA, the company delivers on strong branding and affordable furniture at reasonable quality, but needs to expand more actively in digital marketing and e-commerce sales, as well as the management of its supply chain, which is necessary to keep costs and prices low. Secondly, for Walmart, the company excels in affordable furniture and low costs due to its supply chain excellence, but needs to improve on its branding, digital marketing and e-commerce sales. Thirdly, for Amazon, the company is strong in its supply chain and e-commerce sales, but as it is an aggregator of several third-party furniture suppliers, it is weak in product quality, branding and digital marketing, and needs to improve those aspects. Finally, for Ashley Furniture Industries, the company is strong in branding and quality, but needs to improve its affordability, digital marketing and e-commerce.

Section 4: International expansion strategies to maintain customer value, satisfaction and loyalty.

As IKEA looks to maintain markets in the US while expanding to emerging markets in Asia and India, they should focus on branding, innovation, after-purchase services, premiumisation and localisation of marketing in order to maintain customer value, satisfaction and loyalty.

Foremost, IKEA should focus on branding by continuing to promote uniqueness of Scandinavian design rather than diversifying its product ranges, because diversification would result in brand dilution and a weakening of IKEA’s distinctive global brand. (Moon, 2004)

Secondly, IKEA should continue to innovate in order to maintain aesthetic appeal and functional quality. (Moon, 2004) IKEA’s chief weakness in its products has been their slightly inferior design and quality, which are typically not very durable when compared to those of their competitors. IKEA should therefore invest more actively in research and design to create products that are more durable and beautiful.

Thirdly, IKEA should Include better after-purchase services such as assembly and warranty guarantees. This may include having home assembly services at an affordable price point.

Fourthly, in line with the demand from the growing middle class in emerging markets, IKEA should launch a premium range of products that is more durable and luxurious, to cater to the upper-class tastes of the new middle class. (Moon, 2004)

Finally, IKEA should localise marketing to local cultural contexts and sensitivities as they expand. This may be done through the use of new technologies such as augmented reality and AI to provide better online customer experiences that are experiential and customised. Also, as shown by a 2007 study by Capdevielle et al, IKEA Sweden experienced success in catering its product catalogues to fit the tastes of the Chinese and French markets. (Capdevielle et al, 2007) Hence, while IKEA should not diversify its products, IKEA should adapt and localise its marketing to local contexts.

Briskin, L. (2016). The employer offensive: anti-unionism and lockouts. In  III International Conference Strikes and Social Conflicts: combined historical approaches to conflict. Proceedings  (pp. 191-208). CEFID-UAB,.

Buehlmann, U., & Schuler, A. (2009). The US household furniture industry: Status and opportunities.  Forest Products Journal ,  59 (9), 20.

Capdevielle, L., Li, M., & Nogal, P. (2007). A creation of competitive advantage by using differentiation of company´ s strategy actions: The case study of IKEA Sweden with experiences on Chinese and French markets.

Edvardsson, B., & Enquist, B. (2011). The service excellence and innovation model: lessons from IKEA and other service frontiers.  Total Quality Management & Business Excellence ,  22 (5), 535-551.

Khamis, S. (2016). Brand IKEA in a Global Cultural Economy: A Case Study.  Consumer Culture: Selected Essays .

Molin, A. N. N. A. (2012). Ikea regrets cutting women from Saudi ad.  Wall Street Journal .

Moon, Y. (2004).  IKEA invades America . Harvard Business School.

Ngai, S. B. C., & Falkheimer, J. (2017). How IKEA turned a crisis into an opportunity.  Public Relations Review ,  43 (1), 246-248.

Wei, L. Q., & Zou, X. (2007). IKEA in China: facing dilemmas in an emerging economy.  Asian Case Research Journal ,  11 (01), 1-21.

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Sustainability at IKEA Group

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Sustainability at ikea group description.

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan.

Case Description Sustainability at IKEA Group

Strategic managment tools used in case study analysis of sustainability at ikea group, step 1. problem identification in sustainability at ikea group case study, step 2. external environment analysis - pestel / pest / step analysis of sustainability at ikea group case study, step 3. industry specific / porter five forces analysis of sustainability at ikea group case study, step 4. evaluating alternatives / swot analysis of sustainability at ikea group case study, step 5. porter value chain analysis / vrio / vrin analysis sustainability at ikea group case study, step 6. recommendations sustainability at ikea group case study, step 7. basis of recommendations for sustainability at ikea group case study, quality & on time delivery.

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Case Analysis of Sustainability at IKEA Group

Sustainability at IKEA Group is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Sustainability at IKEA Group is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Sustainability at IKEA Group case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Sustainability at IKEA Group will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Sustainability at IKEA Group case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Sustainability at IKEA Group, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Sustainability at IKEA Group case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Sustainability at IKEA Group case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Sustainability at IKEA Group

Step 1 – Problem Identification of Sustainability at IKEA Group - Harvard Business School Case Study

The first step to solve HBR Sustainability at IKEA Group case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Ikea Sustainability is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Ikea Sustainability, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Sustainability at IKEA Group. The external environment analysis of Sustainability at IKEA Group will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Sustainability at IKEA Group case study. PESTEL analysis of " Sustainability at IKEA Group" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Sustainability at IKEA Group macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Sustainability at IKEA Group

To do comprehensive PESTEL analysis of case study – Sustainability at IKEA Group , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Sustainability at IKEA Group

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Sustainability at IKEA Group ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Ikea Sustainability is operating, firms are required to store customer data within the premises of the country. Ikea Sustainability needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Sustainability at IKEA Group has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Ikea Sustainability in case study Sustainability at IKEA Group" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Ikea Sustainability in case study “ Sustainability at IKEA Group ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Ikea Sustainability in case study “ Sustainability at IKEA Group ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Sustainability at IKEA Group ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Ikea Sustainability can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Sustainability at IKEA Group case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Ikea Sustainability needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Sustainability at IKEA Group

Social factors that impact sustainability at ikea group, technological factors that impact sustainability at ikea group, environmental factors that impact sustainability at ikea group, legal factors that impact sustainability at ikea group, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: sustainability at ikea group case study solution.

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• Corporate Social Responsibility (CSR) ,

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Spotlight: IKEA Strategic Considerations

Get out the toolkit and read on as Georgina gives her thoughts on IKEA’s strategic considerations… 🛒

Table of Contents

Spotlight: IKEA Strategic ConsiderationsBuilding a strategy is like building furniture. Stick with me on that analogy… you have different pieces of your business, different objectives, and they need to be linked together to make each part stronger and your overall vision a reality. One company that most likely sees it’s strategic plans in that way is IKEA.

The company was originally founded in 1943 by Ingvar Kamprad in Sweden and expanded to the UK in 1987. The UK market itself is under great change due to the recent political decisions, so what strategic considerations should IKEA have? Let’s take a look…

PESTLE Analysis for IKEA in the UK

The impact of Brexit has already affected IKEA. Brexit caused prices to increase in 2017, but this did not end up hindering sales. However, the uncertainty of the pound to euro exchange rate could affect IKEA in the long run.

Climate change is a major issue that big corporations like IKEA need to evaluate. Their process of improving their sustainable image has begun by selling and using solar panels as well as beginning to eliminate one use plastic products. They are aiming to become a fully circular business by 2030 to eliminate waste and reuse resources.

The social cultural trend that could benefit IKEA in the future is the increase in online shopping. IKEA could use this to their advantage to push online sales to increase overall sales.

• UK leaving EU
• Minimum wage in UK due to increase to £10.50 by 2024
• Will affect trading deals with EU, meaning higher barriers to entry.
• Harder for smaller companies that do not have the infrastructure.
• Effect will vary depending on company but retail is said to find increases harder to manage
• Have already been affected by import costs as prices raised by 3.6% in 2017, but sales still increased despite this.
• Uncertainty of the pound exchange rate will affect prices of products.
• Employees’ wages might increase – more costs for IKEA. Increase in customer income could persuade them to a premium brand.
• 1.7% inflation rate – Lowest rate since 2016
• GDP growth predicted to increase to 2% by 2022
• Will increase consumer spending on non-essential items.
• Could benefit or harm companies based on their target markets.
• Will increase sales, but inflation rates could be unpredictable with Brexit looming.
• If customer’s income increases them other premium companies could gain IKEA’s customers
• UK online spend is forecast to increase 29.6% between 2019 and 2024
• Aging population in UK
• Companies would want to alter companies to keep up with trends.
• Will be more of an emphasis on targeting the older population.
• Emphasis on online sales and incorporate online promotional tactics into their strategy
• Should be taken into consideration for future target market – older demographic not the main target market

Technological

• £6.3billion total venture capital investment in UK technology in 2018
• “UK homeowners are starting to show greater interest in smart home technology and awareness is growing fast
• Will be necessary to invest to keep up with competition
• Force companies to match this trend to compete
• Possible threat but IKEA have already implemented augmented reality and virtual reality, putting pressure on competition. This technology merges the store experience with the visual experience.
• Already implemented smart lighting, blinds, speakers and charging devices, but will need to make sure its functions correctly and they stay ahead of competitors.

Environmental

• The UK is installing solar panels faster than any other European country
• Threat of climate change
• Possibility of companies changing to solar panels due to new customer expectations
• Could change how corporations are run. New laws could be implemented to improve corporation pollution
• Already implemented in stores and have now made it available to buy solar panels for customers to use at home
• Aiming to no longer produce one use plastic free products by 2020.
• Creating sustainable store in London run by solar panels

Read the Ultimate Guide to PESTLE Analysis.

Five Forces Analysis for IKEA in the UK

While IKEA have proven themselves by maintaining their strong sustainable competitive advantage, there are threats in the competitive environment that should be analysed. Due to the volume of competitors in the furniture industry, IKEA needs to make sure that they are innovating and maintaining their large market share.

There is a threat of substitutes for IKEA due to the innovation of new furniture outlets like Gumtree. Additionally, because there are lots of choice for furniture stores, the bargaining power of buyers poses a threat for IKEA.

Bargaining power of suppliers have a low impact because suppliers need IKEA more than IKEA needs them. To ensure that the right suppliers are chosen, IKEA uses the IWAY contract (IKEA.com, 2019c), which lists what the supplier is not allowed to do (i.e. child labour). New entrants also do not impact IKEA much because it is hard for start-ups to compete with a company as established as IKEA and in a competitive market.

Industry Rivalry: High

• Highly competitive growing market. High exit barriers.
• Competitors: DFS, Wayfair, B&Q, Wickes, John Lewis, Amazon, Argos
• IKEA should maintain its sustainable competitive advance by differentiating themselves by providing low cost, high quality products.

Threat from New Entry: Low

• High barriers to entry because of established market and high competition. Hard for newcomers due to economies of scale.
• New entrants competing with IKEA is hard and costly as IKEA are such a globally known company, thus making IKEA have a competitive advantage.
• High expertise and innovation in the sector which pushes IKEA to focus on innovating products (e.g. home technology, AR)

Threat from Substitutes: Medium

• Gumtree, charity shops, furniture markets.
• Not many alternatives that are low price, high quality and offer the same variety of products.
• Their brand image aids in preventing substitutes to be a major issue.

Threat from Suppliers: Low

• Furniture industry have the choice of their suppliers.
• Due the substantial amount of suppliers that IKEA are able to acquire means that the suppliers are in a more vulnerable position and do not hold much bargaining power.
• IWAY is the code of conduct that IKEA’s suppliers must follow to be one of their suppliers (if violated, they are removed)  create strong relationships with suppliers (IKEA.com, 2019b)

Threat from Customers: Medium

• Customers have lots of choice in the furniture industry so important for companies to differentiate themselves.
• With the threat of a growing market, IKEA should not be too threatened by the competitive environment as they produce high quality and affordable products using a cohesive and thought-out strategy that will satisfy the target audience.
• Follow the customer trends of affordable pricing – IKEA customers are price sensitive.

Complete your own Five Forces here.

SWOT Analysis for IKEA in the UK

• Low price, high quality and stylish products
• Strong global brand image
• Variety of products
• Extensive market research
• Economies of scale – large number of units for cheaper products
• High barriers to entry for start ups
• Has increased renewable resources
• IKEA customer experience – in the store
• Lack of stores in the UK, which makes it harder for customers to get to stores
• Size of the company makes it hard to control standards and quality
• Reliant on suppliers to provide materials

Opportunities

• Demand for sustainability. Reducing carbon footprint
• New, smaller stores
• New technology – smart home technology (Schwartz, 2019)
• Adding premium furniture line – reach bigger demographic
• Celebrity endorsement
• Leasing furniture (Rogers, 2019) – implement in all of UK
• Effects of Brexit – possibility of increased prices
• Highly competitive industry
• If there is an increase in customer household income, then customers likely to buy from higher quality competitor need to keep prices low
• Alternatives to furniture stores leasing them or buying cheaply from charity shops

Read the Ultimate Guide to SWOT Analysis.

Strategic Objective: Digital Marketing

Digital marketing would be a key tool to help implement a market penetration strategy for IKEA. It would bring more brand awareness, which would inevitably increase the market share and increase online sales. This approach would also help to promote the sustainability of the company and would increase the brand image by showing customers that the company is environmentally responsible.

While IKEA has proven its dedication to digital marketing, they could emphasise this to further enhance their position in the market.

Digital Marketing Mix:

• Price: Promotions for buying products online, student discounts, family discount
• Product: Showcasing their smart home technology, continue using their augmented reality (AR) technology to showcase furniture
• Place: Use social media more to reach younger target market, improve online website for customers – make it easier to use and include all products that can be found in the stores
• Promotion: Increase advertisements that highlight the sustainability of IKEA to reach target market (using environmentalist celebrity), continue using guerrilla marketing to get customers involved more

5 I’s :

• Identification: Make customers at forefront of decisions, target students and families that care about the environment
• Individualism: Individual or family IKEA account which helps consumers to see products relating to products that have been previously bought or looked at
• Interaction: Guerrilla marketing in big city stores to interact with customers, social media to increase customer’s awareness of IKEA’s sustainability, virtual reality, augmented reality, getting customer feedback to stay ahead of trends, emphasise sustainably being done affordably
• Integration: Need to make sure that all marketing elements agree with the brand image of the company and have a cohesive message
• Integrity: IKEA should continue to show their down-to-earth values through their marketing (IKEA.com, 2019a), make sure that website is safe for customers to use and online service is positive

Overall, implementing digital marketing further will allow IKEA to achieve their company objectives of financial growth, brand positioning and customer acquisition.

In short, a lot for IKEA to consider! If you’ve enjoyed this article you might like to read our article on strategic considerations for the retail industry .

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Ikea Branding Strategy and Marketing Case Study

Analysis and examples of ikea’s identity, positioning, key messages, tone of voice, brand archetypes, customer benefits, competitors, and marketing content..

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Brand Overview

• Home and Garden

Business Type

Physical Products

https://www.ikea.com

Target Customer

Budget Home Shoppers

Primary Need ( Job To Be Done )

Furnish my home with goods that are fashionable but affordable

Brand Visual Identity & Content

Primary brand colors, brand typefaces, hero content.

Hero Content Type

Content features people, brand messaging, key messages, benefit or feature focus, tone of voice, brand archetypes.

( Learn More About Brand Archetypes )

Everyperson

Brand Positioning Strategy ( Elements of Value )

( Learn More About The Elements of Value )

Aspirational

Self-Actualization

Design & Aesthetics

Reduces Cost

Brand Benefits

Ability to furnish everything I need in my home at one single shopping location 

Access to modern and trendy design aesthetics at extremely affordable pricepoints

Consistent, well thought out assembly instructions to get new furniture ready to use quickly

Competition

Key competitors.

Target, Wayfair, Amazon, Lowe’s, Home Depot, Ashley Furniture, Cost Plus World Market, Floyd

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Sustainability at ikea group case study analysis & solution, harvard business case studies solutions - assignment help.

Sustainability at IKEA Group is a Harvard Business (HBR) Case Study on Strategy & Execution , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Strategy & Execution Case Study | Authors :: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt

Case study description.

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan.

Marketing, Social enterprise, Supply chain, Sustainability

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the strategy & execution.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Strategy & Execution. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Sustainability at IKEA Group HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

• Marking out the protagonist and key players in the case study from the very start.
• Drawing a motivation chart of the key players and their priorities from the case study description.
• Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
• Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Sustainability at IKEA Group Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

• Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
• HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
• Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Sustainability at IKEA Group

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

• Zero down on the central problem and two to five related problems in the case study.
• Do the SWOT analysis of the Sustainability at IKEA Group . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
• SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Sustainability at IKEA Group
• SWOT analysis will also provide a priority list of problem to be solved.
• You can also do a weighted SWOT analysis of Sustainability at IKEA Group HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Sustainability at IKEA Group

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Sustainability at IKEA Group

Another way of understanding the external environment of the firm in Sustainability at IKEA Group is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Sustainability at IKEA Group Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

• Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
• Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
• Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

• Detailed understanding of the case,
• Clarity of HBR case study fundamentals,
• Analyzed case details based on those fundamentals and
• Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Sustainability at IKEA Group case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Sustainability at IKEA Group case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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