Meeting the needs of the consumer
An IKEA case study

Page 1: Introduction

“Once upon a time, a long, long time ago we decided that, instead of making furniture for people with fat wallets, we would side with the majority of people instead and offer them a better everyday life. We decided to offer a wide range of home furnishing items of good design and function, at prices so low the majority of people could afford to buy them.” Ingvar Kamprad. Many...
Read full page

Page 2: Business start-up

The IKEA concept was a revolutionary one which was well ahead of its time. Essentially, IKEA has built an anti-brand which stands for the good of the many people rather than a narrow group of shareholders. IKEA began with the question: ‘Who’s on the side of the customer?’ From this stemmed a corporate philosophy which asked two further questions: ‘Isn’t there room...
Read full page

Page 3: IKEA's vision

A vision is the ideal or aim to which an organisation and its people work. The vision statement should answer the question – ‘Who is IKEA?’ Having a clear vision enables an organisation to enthuse its employees, customers, suppliers and other important stakeholders. Ingvar Kamprad’s vision, for example, was different and exciting because it said that ordinary people...
Read full page

Page 4: Today's business idea

Today, IKEA’s business idea has come some way since the earliest days of Ingvar Kamprad. IKEA sets out its business idea in the following way: ‘To offer a wide range of home decorating articles with good form and function, at prices so low that as many people as possible will be able to afford them.’ The three key dimensions of IKEA are therefore: Good FORM and FUNCTION, at a...
Read full page

Page 5: Meeting the needs of the consumer

Because IKEA is fundamentally concerned with serving the requirements of ‘the many people,’ the design process begins with finding out what the consumer wants. IKEA therefore engages in a continual cycle of market research to find out about consumer lifestyles, what benefits consumers are seeking from a range of household furnishings, what consumer perceptions are of existing...
Read full page

Page 6: Conclusion

This case study shows the importance and influence of vision within a company. Ingvar Kamprad’s original vision has provided IKEA with a clear set of goals and principles that have contributed enormously to the success of the company. His vision to provide home furnishings of good design and function at prices so low that the majority of people could afford them has led to a company...
Read full page

Related: IKEA
Case studies in Business Case Studies