Analysis of IKEA's Success Summary of the Case Although IKEA’s humble beginnings belie its present success, it is easy to understand why the appeal of this global company has led to a significant and longstanding consumer response. The company, which was created in 1943 by a seventeen-year-old entrepreneur by the name of Ingvar Kamprad, has developed itself from a small catalog distributor of household goods to one of the world’s most recognizable brands. IKEA has managed to grow from a home-based industry to becoming the most prominent furniture retailer in the world. The reason for IKEA’s success stems from three specific indicators: the company’s ability to deliver high-end design, self-selected by customers (without the required...The end:
.....w throughout the global economic crisis, opening new stores even though the company moves at a slow pace. IKEA’s conservative expansion and fiscal policy, as well as its widespread reputation for low cost and value for price have provided the company with ample room to weather challenges over the long term. References Ferrell, O. and Hartline, M. (2008). Marketing Strategy. Mason OH: Cengage Learning. Hambrick , D. and Fredrickson, J. (2005). Are you sure you have a strategy? Academy of Management Executives, 19(4), 51-63. Moller , K., Rajala, A., & Svahn, S. (2005). Strategic business nets — their type and management. Journal of Business Research, 58, 1274–1284. Porter, M. (1996). What is Strategy? Harvard Business Review, 74(4), 2-20.