Summary
Introduction
I – Concept and business model of IKEA
Aspect of the IKEA company
1- Product range
2-Sustainability and social responsibility
International expansion
Design and collaboration
Client experience
6-future trend of IKEA
CULTURAL AND ECONOMIC IMPACT
Conclusion
1
Introduction
Ikea, founded in 1943 by the Swedish entrepreneur Ingvar Kamprad, is a
Swedish brand renowned for its stylish and affordable furniture, as well as its
ready-to-assemble household items. Ikea originated in Älmhult, a small town
in southern Sweden .
I - Concept and business model of IKEA
IKEA's concept revolves around providing affordable and functional furniture
and decor items designed for self-assembly. The company embraces a
minimalist design approach and utilizes flat packaging to reduce
transportation costs. IKEA's business model includes self-service stores,
extensive warehousing for product storage, and a cafeteria to enhance the
overall shopping experience. IKEA is also renowned for its high-volume, low-
margin strategy, allowing for competitive pricing and value for consumers.
II-aspect of the IKEA company
1-produt range
IKEA offers a diverse range of home products, including furniture, decor
items, textiles, kitchen accessories, and much more. Their products are often
known for their functional and affordable design, as well as the DIY (Do It
Yourself) assembly concept. You can find furniture for every room in the
house, along with innovative storage solutions.
2-sustainability and social responsibility
2
IKEA emphasizes sustainability and social responsibility
in its operations. They are committed to using
sustainable materials, minimizing their carbon footprint,
and promoting recycling. IKEA also invests in renewable
energy and advocates for ethical practices throughout
its supply chain. Regarding social responsibility, IKEA
engages in initiatives to enhance working conditions,
promote diversity and inclusion, and support local
communities through social projects.
3-international expansion
IKEA has experienced significant international expansion, with stores present
in numerous countries worldwide. While their initial stores were in Europe,
over the years, IKEA has expanded its presence in North America, Asia,
Australia, and other regions. This global expansion has contributed to making
IKEA one of the largest retail chains for furniture and home goods globally. It
often involves adapting their offerings to meet the specific preferences and
needs of local markets.
4-design and collaboration
IKEA is known for its functional and affordable design. They frequently
collaborate with renowned designers and artists to create exclusive
collections, adding a creative and contemporary touch to their products.
Collaborations with designers like Karim Rashid, Virgil Abloh, and others
expand IKEA's offerings, attracting diverse styles and influences. These
partnerships reflect IKEA's commitment to providing a variety of aesthetic
choices to its global customer base.
3
5-client experience
IKEA emphasizes the customer experience by creating friendly shopping
environments and offering affordable products. The unique feature of self-
assembly for furniture, while distinctive, can pose a challenge for some
customers. The company aims to enhance the experience through services
like delivery, installation, and investments in technological solutions to
simplify the buying process. Positive feedback often highlights product
diversity, value for money, and innovative design. However, criticisms may
arise regarding assembly complexity or item availability in stock.
6-future trend of IKEA
Future trends for IKEA could include a heightened focus on sustainability,
technological innovation, and increased product customization. It's likely that
IKEA will continue to develop sustainable solutions, utilizing recycled
materials and implementing eco-friendly practices. Integrating technology
into the customer experience, such as augmented reality for visualizing
furniture in home spaces, could also play a significant role. Lastly, addressing
consumer demands for customization by offering more extensive
customization options might be a trend to watch.
7-CULTURAL AND ECONOMIC IMPACT
The impact of IKEA on culture and the economy is significant. Culturally, IKEA
has influenced interior design trends by popularizing a modern, functional,
and affordable style. The concept of flat-pack furniture has also changed how
consumers perceive furnishing and contributed to the democratization of
design.
Economically, IKEA is a major global company, creating jobs worldwide and
generating substantial revenue. Its business model, focused on efficiency,
large-scale production, and global distribution, has enabled IKEA to offer
4
shaping consumer expectations regarding value for money and accessibility.
Conclusion
In conclusion, IKEA stands out for its innovative approach to affordable and
functional furniture, its iconic Scandinavian design, and its commitment to
sustainability. With its self-service concept, the company has revolutionized
the furniture shopping experience. However, some critics highlight concerns
related to the quality and environmental impact of mass production. Despite
this, IKEA remains a major influence in the world of widely accessible interior
design.
