$2-$ The IKEA Case

The home furnishing industry confronts a multitude of cost$-$related hurdles, including customer price sensitivity$,$ the necessity for premium retail locations, and logistics and supply chain expenses. Evolving consumer behaviors, such as a growing emphasis on sustainability and a preference for digital solutions, further intensify these challenges. In this context, IKEA, as a prominent player in the retail furnishing domain, distinguishes itself through a price leadership strategy, necessitating efficient operations without compromising quality. To achieve this, the company has implemented strategic actions and initiatives, such as optimizing store locations, one$-$way store layouts, reliance on written product information, and the use of lightweight and durable transport solutions. In this case study, we explore the cost$-$related challenges faced by IKEA while adapting to evolving consumer demands. Specifically, our investigation centers on the role of sustainable supply chain practices, organizational culture, and innovation in overcoming these challenges. By delving into these dimensions, this paper aims to offer valuable insights and recommendations to help IKEA navigate the intricacies of cost management within

a dynamic business environment