Why Is IKEA So Successful? The Business Strategy Behind the Flat-Pack Furniture Giant
Why Is IKEA So Successful? The Business Strategy Behind the Flat-Pack Furniture Giant Quick Answer IKEA designs products around five goals: form, function, quality, sustainability, and low price. Flat-pack furniture cuts transportation and storage costs while shifting part of the assembly work to customers. IKEA studies how people actually live in different markets rather than assuming every home works like a Swedish apartment. Its showroom, Market Hall, warehouse, and restaurant turn furniture shopping into a longer, highly visual experience. Research on the “IKEA effect” suggests people may value successfully completed products more when they help build them. IKEA asks customers to tolerate things most retailers spend fortunes trying to eliminate. The stores can require a dedicated trip. The showroom is enormous. You may have to find your own boxes in a warehouse. Then you get home and discover that purchasing the furniture was merely t...