IKEA

Revenue

$40.906 billion (2016)

Employees

194,000 (2017)

Founded

1943



Overview:
IKEA is a Swedish-founded multinational group that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories, among other useful goods and occasionally home services. It has been the world's largest furniture retailer since at least 2008. It was founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, who was listed by Forbes in 2015 as one of the ten richest people in the world, worth more than $40 billion. The company's name is an acronym that consists of the initials of Ingvar Kamprad (name of founder), Elmtaryd (the farm where he grew up), and Agunnaryd (his hometown in Småland, southern Sweden).

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Industries:
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Retail
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Consumer Goods



Similar firms (based on pattern co-occurrence):
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4 shared patterns
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3 shared patterns
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5 shared patterns
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3 shared patterns
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3 shared patterns
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3 shared patterns
Business Model Patterns:

Cross Selling

How they do it: Although IKEA’s core offering is cheaply priced furniture its physical stores offer a lot of other products related to home and living. In addition, IKEA stores usually have both a restaurant as well as a supermarket with Northern European products.

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Direct Selling

How they do it: IKEA’s products are only available in their physical stores and on their website. The stores are standardized in terms of offering and design. The inventory in the stores, in the catalogue and on the website are identical.

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E-commerce

How they do it: IKEA has presents all its inventory on its website. This allows customers to both preview products they want to buy in the store as well as to order them to their home.

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Experience Selling

How they do it: IKEA’s stores and products are all designed around the theme ”Nordic living”. Products are named with Swedish words and the food offered in the IKEA restaurants and grocery stores is mainly Swedish as well. Hence IKEA products and product names have a high recognition value.

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Mass Customization

How they do it: IKEA offers products such as shelves and closets that can be customized to individual needs. In stores, IKEA offers ”design assistants” in form of computers which let every customer design the closet to their needs and with different configurations.

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No Frills

How they do it: IKEA offers different product lines for each category, including a basic one, letting customers with a low purchasing power buy furniture in their stores. Products in the self-service area are presented in a simple way comparable to a warehouse.

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Self-service

How they do it: IKEA stores have three main areas, the exihibition area, self-service area, and warehouse. Products from the self-service area are grab and go articles. Larger products and furniture is presented in the exhibition area and numbered. The customer then has to pick-up the individual parts of the furniture according to the numbers in the warehouse area and proceed to the check-out.

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Supermarket

How they do it: Based on ”Nordic living”, IKEA offers everything related to home and living as well as groceries. This includes furniture for indoor and outdoor, accessories and food.

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Target The Poor

How they do it: IKEA’s products are competitively priced and have a high degree of standardization. This allows also customers with a lower purchasing power to buy at IKEA. In every category there is a budget option as well.

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