IKEA

IKEA

Question 1
• The tradition to hand down furniture from generation to generation was giving way to young householders looking for new yet inexpensive furniture.
• Between 1935 and 1946 furniture prices went up by 41% faster then other household goods. IKEA took advantage of it with high quality furniture and lower prices.
• IKEA never gave up selling despite the constant barriers put down by the traditional retailers in Sweden.
• IKEA took under consideration the impact of automobiles on shopping habits, and gave priority to ample parking space. They also positioned their outlets outside the big cities so the rent was cheaper then the down town places.
• Their basic practices like self service, informative catalog, explanatory tickets on furniture, the knock down kits and the cash and carry concept helped them be the industry low price leader.
• They focused on young buyers who were looking to furnish their first apartments.
• Usi...