IKEA Case

Ikea Case

The tradition in Sweden’s past was to hand down custom-made furniture from one generation to the next. Customers in Sweden were interested in buying reasonably priced items, but this was made impossible by the cartels of furniture makers running the markets. Inter association supply contracts and agreements raised barriers to new entrants. Between 1935-1946 furniture prices rose 41% faster than other household goods. Kamprad who was an idealist felt that this would be social problem and perhaps a good business opportunity. He was going to revolutionize furniture by “We shall offer a wide range of home furnishing items of good design and function at prices so low that the majority of the people can afford to buy them.” The fact that he offered products of good quality is what allowed him to penetrate the market.
The company expanded internationally because Kamprad said and believed, “It is our duty to expand.” He felt that the world should experience ...