answer the form 

MKT 4800W Spring 2022

IKEA: Answer Form

Student Name:

Grading Criteria

1) This assignment requires formal business writing. Your writing tone should be formal.
All sentences must be complete.
Bullet points are not acceptable.
3) Use proper grammar.
4) You must use your own words in your answers. Do not copy and paste sentences from the textbook case or the assigned articles.
5) The majority of your grade will be based on correctness and quality. Regarding quality,
an answer with fewer than four (4) lines on computer viewing (not on smartphone viewing) will be considered as a poor-quality answer.

Q1) Identify key players (e.g., customer groups, supplier companies, major organizations) that IKEA deals with in its operation and, from the marketing perspective, describe what IKEA exchanges with each of the key players in order to make money in its business.

Q2) Based on the textbook case and the assigned articles, define IKEA’s target consumers in the U.S. in terms of age, education level, income level, city size, and fashion taste.

Q3) Based on the textbook case, the assigned articles, and your own experience (if applicable), what has IKEA done well in the furniture retailing business? In other words, what are IKEA’s success factors in the furniture retailing business?

Q4) How does IKEA reduce its overall costs in production and supply chain management? [Hint: This question is based on the textbook case.]

Q5) Why is “furniture hacking” important for IKEA’s future? What are the benefits of allowing and embracing “furniture hacking” for IKEA? [Hint: This question is based on the second assigned article.]

Q6) Based on the last two assigned articles, identify two (2) major changes or initiatives that IKEA has launched recently and describe how they can improve shopping experience for its customers.

IKEA’s Change 1:

IKEA’s Change 2:

NOVEMBER 14, 2005


When Roger Penguino heard Ikea was offering $4,000 in gift certificates to the first person in line at the opening of
its new Atlanta store, he had no choice. He threw a tent in the back of his car and sped down to the site. There,
the 24-year-old Mac specialist with Apple Computer Inc. () pitched camp, hunkered down, and waited. And waited.
Seven broiling days later, by the time the store opened on June 29, more than 2,000 Ikea fanatics had joined him.
Some were lured by the promise of lesser prizes for the first 100. Others were just there for the carnival
atmosphere (somebody even brought a grill). The newly wed Penguino got his certificates and bagged a $799
Karlanda sofa and a $179 Malm bed, among other items. He also achieved celebrity status: “Whenever I go back,
employees recognize me and show me the new stuff.”

Penguino is a citizen of Ikea World, a state of mind that revolves around contemporary design, low prices, wacky promotions,
and an enthusiasm that few institutions in or out of business can muster. Perhaps more than any other company in the world,
Ikea has become a curator of people’s lifestyles, if not their lives. At a time when consumers face so many choices for
everything they buy, Ikea provides a one-stop sanctuary for coolness. It is a trusted safe zone that people can enter and
immediately be part of a like-minded cost/design/environmentally-sensitive global tribe. There are other would-be curators
around — Starbucks and Virgin do a good job — but Ikea does it best.

If the Swedish retailer has its way, you too will live in a BoKlok home and sleep in a Leksvik bed under a Brunskära quilt. (Beds
are named for Norwegian cities; bedding after flowers and plants. One disaster: a child’s bed called Gutvik, which sounds like
“good f***” in German.) Ikea wants to supply the food in your fridge (it also sells the fridge) and the soap in your shower.

The Ikea concept has plenty of room to run: The retailer accounts for just 5% to 10% of the furniture market in each country in
which it operates. More important, says CEO Anders Dahlvig, is that “awareness of our brand is much bigger than the size of
our company.” That’s because Ikea is far more than a furniture merchant. It sells a lifestyle that customers around the world
embrace as a signal that they’ve arrived, that they have good taste and recognize value. “If it wasn’t for Ikea,” writes British
design magazine Icon, “most people would have no access to affordable contemporary design.” The magazine even voted Ikea
founder Ingvar Kamprad the most influential tastemaker in the world today.

As long as consumers from Moscow to Beijing and beyond keep striving to enter the middle class, there
will be a need for Ikea. Think about it: What mass-market retailer has had more success globally? Not Wal-
Mart Stores Inc. (), which despite vast strengths has stumbled in Brazil, Germany, and Japan. Not France’s

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Pennie Dawes, a student at London’s Royal College of Art, works on her Delaktig model as part of a workshop

organized by IKEA to solicit ideas from students. PHOTO: SAABIRA CHAUDHURI/THE WALL STREET JOURNAL

IKEA’s ‘Open Source’ Sofa Invites Customization – WSJ…

1 of 3 1/30/2017 8:33 AM

IKEA’s ‘Open Source’ Sofa Invites Customization – WSJ…

2 of 3 1/30/2017 8:33 AM

Copyright ©2017 Dow Jones & Company, Inc. All Rights Reserved

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IKEA’s ‘Open Source’ Sofa Invites Customization – WSJ…

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Ikea appears to be going all-in on its strategy to attract more urban

millennials by inching further away from its iconic warehouse-like

spaces — at least in part.

Earlier this month, the Swedish home goods retailer began

construction on a new store concept in Vienna, Austria. The seven-

story building, located at the Westbahnhof train station, is set to be

completed by 2021, according to the company’s website.

However, unlike traditional Ikea locations that encourage

consumers to come to stores and haul their purchases away with

them, this store takes a different approach. With no parking lot in

the plans, the Vienna location comes in stark contrast to its

warehouse counterparts (like the Burbank, California, store that

has 1,700 parking spaces).

“The concept focuses on the current megatrends and takes into

account the dramatically changed shopping behavior as well as a

new form of mobility without a car,” the company said on its

website. “Customers have little time and appreciate convenience.”

Though shoppers will be able to walk out with some items in hand,

products deemed too large to carry home will be delivered to them

within 24 hours, the company said.

Ikea recently tested smaller-format stores with its urban planning

studios in Paris, London and most recently on New York’s Upper

East Side. The stores offer consumers the opportunity to sit down

with a consultant to learn about Ikea’s products and plan out a

design project. What they don’t offer is the ability to walk out of

the store with merchandise.

Ikea goes after urban millennial consumers | Marketing Dive…

1 of 4 1/31/2020, 1:29 PM

The Vienna store may align closer with a planned location in New

York’s Queens borough, which is set to open sometime this

summer. That location is about a third of the size of a traditional

Ikea store, but allows consumers to purchase items both in store

and order for delivery.

Ikea’s strategy to lure a younger set of customers living in cities has

recently heated up. Last June, the retailer partnered with startup

Ori to build out robotic furniture that helps alleviate the pains of

living in tight spaces, and prior to that Ikea announced it would

begin testing furniture leasing options in 30 markets this year.

The discussion forum on RetailWire asked its BrainTrust panel of

retail experts the following questions:

Would it make sense for Ikea to open stores in U.S. cities that

have no parking lots?

Do you see more retailers opening concepts that rely on

shipping items ordered in stores to the homes of customers?

Here are seven of the most insightful comments from the

discussion. Comments have been edited by Retail Dive for length

and clarity.

Gene Detroyer, Professor, International Business, Guizhou

University of Finance & Economics; Executive Director, Global

Commerce Education: We have a new Ikea not far from where I am


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Inside IKEA’s Strategy to Stay Relevant as Consumers Change – WSJ…

1 of 4 2/25/2019, 9:05 PM


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Inside IKEA’s Strategy to Stay Relevant as Consumers Change – WSJ…

2 of 4 2/25/2019, 9:05 PM

Inside IKEA’s Strategy to Stay Relevant as Consumers Change – WSJ…

3 of 4 2/25/2019, 9:05 PM

Copyright © 2019 Dow Jones & Company, Inc. All Rights Reserved

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Inside IKEA’s Strategy to Stay Relevant as Consumers Change – WSJ…

4 of 4 2/25/2019, 9:05 PM

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