Chapter 11, Problem 10TU

Summary Introduction

Case Summary:

IKEA is a Swedish Furniture Giant founded by Ingvar Kamprad with an intention of creating good quality home furnishings at affordable costs. Today IKEA is a multi-billion company with nearly 400 stores in more than a dozen of countries. It maintains its affordable cost by sourcing from 1500 suppliers in 50 countries. United States is the largest market of IKEA, which began in 1985 in Philadelphia.

Characters in the case:

1. Ingvar Kamprad - Founder of IKEA
2. Goran Carstedt − President of IKEA, North America

Adequate information: IKEA has also expanded into apartment building, having over 3500 stores through Sweden, Norway etc. IKEA has dozens of outlets which generate billions of dollars sales annually. IKEA stores also have in-house restaurants, play areas that attract customers.

To Determine:

Whether IKEA’s approach can be considered as one of standardization or adaptation in markets around the world.