Read the Case Study below and Answer the questions that follow: IKEA: IKEA was founded in 1943 by a 17 year old Swede named Ingvar Kamprad. The company which initially sold pens, Xmas cards and seeds from a shed on Kamprads family farm, eventually grew into a retail titan in home furnishings and a global cultural phenomenon. IKEA inspires remarkable levels of interest and devotion from its customers. IKEA achieved these level of success by offering a unique value proposition to consumers: leading edge Scandinavian design at extremely low prices. The companys fashionable bargains include products with unusual Swedish names such as Klippan Love seats, Billy Book cases. The company usually offer low price products and require customer to completely assemble them at home. The strategy results in cheaper and easier transportation as well as more efficient use of store shelf space. IKEA vision is to create a better everyday life for many people and Mission of providing value is predicated on Founders Kamprads statement that people have very thin wallets. We should take care of their interests. IKEA focus on value also benefits the bottom line.Today, IKEA works with approximately 1300 suppliers from 53 Countries. IKEAs stores are located a good distance from most City centres which helps keep land costs down and taxes low. Many IKEA products are sold uniformly throughout the world, but the company also caters to local tastes in China, United States households.

Questions a) What are some of the things IKEA is doing right to reach consumers in different markets? What else could it be doing? (20 marks)

b) IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy. (20marks)