{"id":2043,"date":"2015-12-06T20:25:55","date_gmt":"2015-12-07T01:25:55","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/ikea-redefining-the-market-to-achieve-success\/"},"modified":"2015-12-08T20:22:22","modified_gmt":"2015-12-09T01:22:22","slug":"ikea-redefining-the-market-to-achieve-success","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/ikea-redefining-the-market-to-achieve-success\/","title":{"rendered":"IKEA: Redefining the Market to Achieve Success"},"content":{"rendered":"

\"IKEA\"<\/a><\/p>\n

 <\/p>\n

IKEA is a perfect example of a company that is highly effective at driving alignment between its operating and business models.\u00a0 Starting from a single Swedish store founded in 1943, IKEA has grown to 298 stores in 26 countries with annual sales of $36 billion.\u00a0 While this growth is stunning, it is more extraordinary that IKEA has achieved this growth by completely redefining the furniture market into one where its operating model held all of the advantages.<\/p>\n

When IKEA was founded, furniture was seen as an expensive lifetime investment. It was an item that should last for decades after purchase.\u00a0 However, IKEA’s founders realized that this left a market opportunity for those younger generations that were just starting to move into their own homes and apartments, but did not have the financial resources or stable lifestyle that support an investment in high-end furniture.\u00a0 As a result, IKEA decided on a strategy of offering lower priced furniture to this demographic, while avoiding large compromises in quality that a customer might expect at this price point.\u00a0 This redefined furniture as something to be used and consumed at each stage in a person’s life.\u00a0 IKEA furniture would be expected to last for a few years, then be replaced as the consumer bought new furniture to go with a new household or to better fit the needs or an expanding family.\u00a0 By creating a repeat business for furniture, IKEA built the foundations of its future business empire.<\/p>\n

IKEA marketed heavily to Generation Y’ers and Millennials, and built products that targeted their aesthetic needs.\u00a0 IKEA focused on minimalist design, with clean lines, and an uncomplicated look.\u00a0 The following commercial shows what IKEA believes to be their target customers and the created and innovative solutions that IKEA developed to serve their needs.<\/p>\n

 <\/p>\n