The success of Ikea Suzanne Bishop Cecile Ouzet

The success of Ikea Suzanne Bishop Cecile Ouzet Marion Delplace Lemuel Morisson Amandine Payerne Baron

Outline • Raisons d’être • Business practices • Culture philosophy • Expectations for the future

Business Practices • Flatpacking: low prices • Store design: • • size : economy of scales location: far from cities design: ideas for your own home flow: make the costumer visit all the store • Product innovation • «hot dog » products • back off products • retroactive need = less market research

Business Practices • Timing: • When they enter the market: no competitors • Moderne design becoming populare Catalogue: • Propaganda weapon • More copy than bible

Culture/ Philosophy • Risk taking and acceptance of mistakes • « making mistakes is the priviledge of the active » • Being frugal • « Money spent uneeded, is a disease » • Self-improving ethos • Energetic and hardworking • « lazy people are not Swedish » • Self fulfilment • « self assembly is tool of evangelism » • IKEA Effect: consumers will pay a premuim for do-it-yourself products except when they fail;

Culture/ Philosophy • Creating an experience for their customer • Once customers speak your language; they are hooked • Store layout is an interactive and commited experience • Swedish orderliness

Expectations for the future • Aging population • Competitors: more and more propose low prices • Customers services: make the customers come back • Sucession by 3 sons

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